In the past decade or so, the British government policy support for renewable energy (RE) has been at the core of the rapid growth of bioenergy in the UK rather than genuine market forces. Policy support has been through various instruments which are discussed in this paper, with particular attention given to co-firing and transport fuels. The UK energy sector remains dominated by large fossil fuels power plants and this does not facilitate the introduction of RE. One exception is co-firing which in 2005 generated 2.5TWh. Another area of considerable potential and interest is the use of biofuels (biodiesel and bioethanol) for transport, although current contribution remains still very small (0.18% of total fuel sales in 2005). In 2005, the UK used 1.4 million tonnes of biomass in co-firing, mostly imported, while considerable potential exists for further. expansion should policy incentives continue. It is also generally accepted that the UK will have to rely largely on imports if it is to fulfil its 5% minimum biofuel blends agreed for 2010 and 10% in 2015. Both sectors present excellent opportunities for international bioenergy trade, despite the domestic production potential, as demonstrated in this paper. In addition, the forthcoming introduction of carbon and sustainability reporting should incentivise greater reporting along the supply chain, encouraging trade in the most sustainable biofuels. (c) 2008 Elsevier Ltd. All rights reserved.