UK eyes waste incineration in Emissions Trading Scheme

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The UK Emissions Trading Scheme (UK ETS) Authority is inviting feedback on plans to expand the scheme to cover energy from waste and waste incineration.

The consultation aims to provide detailed information and gather input on the inclusion of waste incineration and energy from waste in the UK ETS starting in 2026 for the Monitoring, Reporting and Verification (MRV) period, with full surrender obligations beginning in 2028.

The authority seeks views on several aspects of the proposed expansion, including the scope of the scheme, requirements for operators, monitoring and reporting protocols and the potential impacts and risks.

These risks include waste diversion to landfill and export, pathways for customer decarbonisation, cost implications for customers and equality considerations.

The consultation also addresses how the UK ETS cap should be adjusted for waste and how the scheme could incentivise investment in heat networks.

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