UK to include waste incineration in national ETS as of 2028

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The British government plans to bring waste incineration operations into the scope of its emission trading system (ETS) in 2028. After organising a consultation last year, the UK Emissions Trading System Authority announced the decision, affecting both energy from waste (EfW) and waste incineration without energy recovery, on 3 July. At present, the governments of England, Scotland and Wales and the environment department in Northern Ireland are minded to set up a two-year phasing in period for waste incineration plants (with and without energy recovery) starting in 2026. From that point until full implementation in 2028, the installations would monitor their emissions. The ETS Authority aims to consult on the details of implementation by the end of 2023.

The expansion of the British emissions cap and trade system to waste in 2028 is in line with expected changes to the EU ETS, the European scheme the UK system was designed to replace following Brexit. Under the recently adopted revisions to the EU ETS Directive, the European Commission is to report on the feasibility of including municipal waste incineration installations in the EU ETS from 2028. With a carbon price to be applied to EfW emissions on both sides of the Channel at roughly the same time, expanding the scope of the British system is unlikely to increase waste exports to the Continent.

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