Following the government’s recent announcement that energy and waste from incineration plants will be included in the UK Emissions Trading Scheme from 2028 that could come at a cost of £800 million a year. Naturally there is some apprehension among operations, however, it’s important to note that the taxes applied to waste disposal is still to be confirmed.
The UK Emissions Trading Scheme (ETS) replaces the UK’s participation in the European Union’s Trading Scheme and is effective from 1st January 2021. The UK’s ETS applies to energy intensive industries, and currently lists the power generation sector and aviation in accordance with the Greenhouse Gas Emissions Trading Scheme Order 2020, with more simplified provisions for hospitals, small emitters, and ultra-small emitters. Plans to expand the scope of the tax to include energy from waste and maritime sectors, have now been carried forward.
It is without a doubt that the waste from energy sector has been under the magnifying glass for some time; the government has been forced to recognise the rising emissions from the sector following several reports calling for this to happen, inclusive of the Climate Change committee’s 2021 progress report.
It has been suggested that the government implement a two-year verification period, between 2026-2028, where operators will have an opportunity to monitor, report and verify their emissions ahead of 2028’s full cost exposure. To maintain a level playing field, the tax will include all forms of energy from waste technology, and the point of obligation for tax will fall on operators of the plant.
The government has confirmed that it will explore the potential impacts of other parts of the waste management sector in the future. Steve Watts, Director of Operations at leading waste management company Wyndham Resources said:
“It is really important that all businesses small or large, fully understand the full environmental impact their business has on us all. Wyndham work alongside all of our clients to ensure we all fully understand where we are, where we want to be and how we are going to get there. The important part is WE as Wyndham are right by your side throughout the whole process”.
The government’s decision to include energy for waste and incineration plants in the UK emission Trading Scheme has received a wide-ranging response and has considered the impact of the scheme on users. The authority has considered the response and believes that the UK Emissions Trading Scheme could certainly facilitate reductions in emissions and increased efficiency across energy for waste plants, and that this could be achieved by incentivising responsible recycling and waste disposal.
Wyndham Resources is the UK’s leading waste management company offering sustainable waste disposal and recycling nationally, and work closely with clients across various industries to maximise their recycling rates and the recovery of valuable resources while minimising the environmental impact of their waste disposal.
Join Wyndham’s zero-to-landfill promise and enjoy cost savings and rebates by contacting our specialists. To find out more, get in touch with Steve Watts, Director of Operations at Wyndham Resources – operations@wyndhamresources.co.uk.
Ref:
https://www.letsrecycle.com/news/efw-to-be-included-in-emissions-trading-scheme-from-2028/