The Environmental Services Association (ESA) said the proposals represent a “seismic shift” to waste treatment in the UK and it’s essential that the recycling and waste industry engages with the consultation.
The UK Emissions Trading Scheme Authority has published consultation documents seeking stakeholder views on the inclusion of energy recovery from waste in the Emissions Trading Scheme.
However, the ESA has warned that the proposals must be “carefully designed” to avoid unintended consequences.
The Association said without implementing complementary new policy support for recycling, reuse and waste reduction, waste could be disposed of in landfill, exported abroad, or cause significant unavoidable costs for businesses and local authorities.
The ESA said ensuring a fair allocation of costs and supporting local authorities is “critical to driving positive behaviour change”, however, the ESA has concerns over the proposals published for recording and allocating emissions.
The ESA supports the inclusion of energy recovery within the Emissions Trading Scheme (ETS), describing it as a key tool for sector decarbonisation.
Including energy recovery from waste in the Emissions Trading Scheme is a major policy lever likely to trigger a seismic shift for the recycling and waste treatment sector.
The proposals effectively introduce a cap on the emissions allowed from Energy-from-Waste (EfW) plants, which are used across the UK to treat residual waste.
The cap will decrease over time and if operators emit more carbon than their allowance, they will need to buy a permit for the additional emissions – either from government or from other emitters who have used less than their allowance.
The ESA said that the ETS timing must align with a ban on sending combustible waste to landfill and that the landfill tax rate should be maintained in line with inflation with a carbon price escalator.
Head of Climate and Energy Policy at the ESA, Charlotte Rule, commented: “Including energy recovery from waste in the Emissions Trading Scheme is a major policy lever likely to trigger a seismic shift for the recycling and waste treatment sector.
“It holds the potential to reduce carbon emissions from residual waste treatment and help drive investment in decarbonisation.
“This consultation is critical to the success of the ETS in the context of our sector and we are pleased to receive the documents ahead of the General Election – allowing our sector time to review and respond comprehensively while Parliament is dissolved.
“On review of the consultation documents, we are somewhat concerned to see little to no mention of a landfill ban for combustible material and that government’s preference is to precisely measure carbon emissions arising from plants rather than a more pragmatic and flexible approach.”
