On 21 July 2025, the Department for Energy Security and Net Zero (DESNZ) released an interim response to the consultation on including waste incineration facilities in the UK Emissions Trading Scheme (ETS).
LARAC welcomes the response but is disappointed that this solely relates to the monitoring, reporting, and verification (MRV) period starting in January 2026, and we are also concerned that participation will be voluntary. We hope the data gathered during this period will be used effectively to inform if, how and when ETS can be introduced for waste across the country.
We welcome the recognition in this response of the potentially unavoidable impacts on local authorities, particularly regarding clinical waste and materials containing persistent organic pollutants (POPs) where incineration is the only legally permitted method of disposal.
LARAC will now be seeking to engage with DESNZ and the other administrations to help advise and provide support to the process of introducing these changes in a way that both supports DESNZ’s aims and mitigates against disproportionate impacts to local authorities for activities which are out of their control.
Cathy Cook, LARAC Chair, said:
“Whilst it is disappointing that the full details of ETS for waste have not been provided, and no timeline has been set for their release, we hope that DESNZ and the other relevant authorities involved take this opportunity to thoroughly assess and identify ways to mitigate the impact of ETS on local authorities.
“The potential impact of ETS for waste on local authorities, as proposed in the 2024 consultation, cannot be underestimated. Costs of up to £1 billion have been speculated, caveated by the potential fluctuation of the market. With no safeguard against cost pass down, it’s a bill that local authorities can neither afford nor avoid.
“Ultimately, the 2028 introduction originally proposed in the 2024 consultation isn’t realistic for local authorities, and it’s reassuring to see that this has not been confirmed in the update this week. Instead, hopefully the MRV period, although disappointingly voluntary, can be extended and used wisely to help advise ways to protect those disproportionately impacted by this, not least UK local authorities, whilst still achieving the aims set by ETS to reduce the incineration of plastics and other materials.”
LARAC remains committed to constructive engagement throughout this process and will continue to advocate for a fair and balanced approach that recognises the challenges faced by local authorities while supporting the UK’s wider environmental goals.
For further information please contact: Toni McNamara, Executive Director, admin@larac.org.uk, 01982 382 650.
Twitter: @LARACspeaks
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