The UK Emissions Trading Scheme (ETS) Authority intend to include Energy from Waste (EfW) and waste incineration in the scheme from 2028.
Developing the UK Emissions Trading Scheme is a joint response from the UK government, Scottish government, Welsh government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland.
The response sets out that the UK ETS Authority intend to include EfW and waste incineration from 2028 and aims to consult on the implications of this position by the end of 2023. According to the response, the UK ETS Authority intend to include advanced thermal treatment (ATT), advanced conversion technology (ACT) and other related advanced waste technologies (including waste-to-fuel facilities) in the UK ETS.
The Authority also says it intends to place the point of obligation for MRV (monitoring, reporting and verification) under the UK ETS on the operators of waste incineration and EfW facilities.
The expansion of the UK ETS to EfW represents the most significant regulatory intervention to the UK waste industry in a generation.
Responding to the announcement, ESA Climate and Energy Advisor, Charlotte Rule, said: “The expansion of the UK ETS to EfW represents the most significant regulatory intervention to the UK waste industry in a generation.
“It will fundamentally change the economics of the sector, and impact all stakeholders across the value chain, including local government, waste producers and the general public.”
The ESA says it supports the government’s proposal to extend carbon pricing to EfW by 2028 and believes the timeframe could provide the industry and local authorities sufficient lead-in time – as long as other complementary decarbonisation and waste reduction policies are also implemented by government.
“Any implementation by 2028 must align with supporting policies,” Rule continued. “These must include the immediate implementation of key packaging and recycling reforms as well as increasing the minimum recycled content threshold for the plastic tax to 50%, which will help to reduce plastic content in the residual waste stream.
“Additionally, this must work alongside policy to nearly eliminate biogenic waste to landfill as well as the development of other regulatory drivers to minimise exports and waste crime.”
Rule concluded her statement by saying the ESA looks forward to working with the Department for Energy Security and Net Zero and other government departments to ensure the detailed regulations needed for inclusion in the UK ETS are “fair, transparent, and practical”.
This announcement serves to further reinforce the need for government to move forward with reforms.
John Scanlon, Chief Executive Officer for SUEZ recycling and recover UK, also reacted to the response and said SUEZ welcomes the alignment of the implementation date with the proposed ban on biodegradable waste to landfill in 2028 and the inclusion of a transition period.
However, Scanlon said this was with the caveat that the detail of the scheme should be clear within the next year for the transition to be “meaningful”.
Scanlon commented: “At the same time, this announcement serves to further reinforce the need for government to move forward with reforms to EPR and consistency without any further delay, to ensure that the development of services and infrastructure to reduce the carbon content of the UK’s residual waste keeps pace with carbon charging.
“The decision to bring only one aspect of the waste sector into the ETS in 2028 is somewhat disappointing given the potential unintended consequences this could create, and at SUEZ we remain convinced that a sector-wide approach, although more complex to design, represents the most effective way to drive the resource efficient, circular economy we need to meet the UK’s net zero ambition.
“However, it appears that this door remains open and we would be keen to work with government on a more holistic, longer term approach.”
