Abstract In 2008, the UK launched the first regulatory sustainability reporting scheme for biofuels. The development of the scheme, managed by the Low Carbon Vehicle Partnership for the Department for Transport, involved extensive stakeholder engagement. The scheme has significantly increased understanding by policy-makers, the biofuels industry and its supply chains on how to monitor and manage the sustainability risks of biofuels and increase their greenhouse-gas benefits. It is providing a practical model for similar developments globally. To receive certificates in order to meet volume obligations under the Renewable Transport Fuel Obligation (RTFO), suppliers must provide a monthly carbon and sustainability report on individual batches of renewable fuels they supply into the UK. The Renewable Fuels Agency produces aggregate monthly reports of overall performance and quarterly updates of individual supplier performance. This scheme is an important first step to assist the biofuels industry to demonstrate its environmental credentials and justify the subsidies received. The paper provides a case study of the development of the scheme, its initial outcomes and outstanding challenges.