Incinerator Waste Tax Could Cost More Than Landfill

The UK government plans to include waste incineration plants in the Emissions Trading Scheme (ETS) starting in 2028. This initiative aims to reduce carbon emissions by requiring incinerators to purchase allowances for their CO₂ emissions, effectively imposing a cost on carbon output.

However, this policy has raised concerns among local authorities. Councils argue that the additional costs could lead them to divert waste back to landfills or export it, potentially increasing overall carbon emissions and undermining recycling efforts. Some experts suggest that introducing a landfill-tax-style levy on incineration could incentivize recycling and reduce waste incineration.

In response to these concerns, the government has announced stricter standards for new waste incinerators, requiring them to meet high environmental and efficiency criteria before receiving planning approval.

The inclusion of incineration in the ETS is scheduled to begin reporting in 2026, with full implementation by 2028. This timeline allows for further consultation and adjustment to address the concerns of all stakeholders involved.

A spokesperson for the Department for Energy Security and Net Zero, said: "Expanding the UK Emissions Trading Scheme to include energy from waste facilities will cut emissions and drive investment in cleaner supply chains.

"We continue to engage with industry and local authorities on the detail of this scheme, including how costs will be passed through to reflect emissions reductions and recycling efforts, and will provide further updates in due course."