UK Emissions Trading Scheme scope expansion: waste
The UK ETS Authority is seeking views on the implementation of the expansion of the UK Emissions Trading Scheme to energy from waste and waste incineration.
We have extended the consultation deadline by 2 weeks to allow for further engagement with stakeholders after the election. It will now close on 2 August 2024.
The UK Emissions Trading Scheme (UK ETS) Authority (UK Government, Scottish Government, Welsh Government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland) is seeking input on a number of proposals to expand the scheme to include energy from waste and waste incineration.
The purpose of this consultation is to provide more detail and consult on the implementation of how waste incineration and energy from waste will be included in the scheme from 2026 for the Monitoring, Reporting and Verification (MRV) only period, with full surrender obligations from 2028.
We would like your views on our proposed approach to expanding the scope of the UK ETS, whether the proposed policy changes are feasible in practice, and whether they will achieve our objectives. In particular, we’re proposing options and / or seeking views on:
- the scope of the scheme, including which activities are covered, thresholds for inclusion and exemptions
- participating in the scheme, including requirements for operators, monitoring, reporting and verification, and guidance
- impacts of the scheme and risks, including diversion of waste to landfill and waste export, decarbonisation pathways for customers, cost pass through to customers and equality considerations
- how to adjust the UK ETS cap for waste
- how the UK ETS could potentially incentivise investment in heat networks
This consultation is open to anyone, but we expect it to be of greatest interest to:
- waste management companies and authorities
- trade bodies
- environmental services groups
- local authorities and other customers of waste incineration facilities
- those with an interest in heat networks
- any individual or organisation that has an interest, directly or indirectly, in the expansion of the UK ETS and/or the adjustment to the cap of the scheme
Read our consultation privacy notice.