Is including Energy from Waste in the Emissions Trading Scheme a good idea?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

Last week, it was announced that Energy from Waste (EfW) plants are to be included in the Emissions Trading Scheme (ETS) - effectively introducing a cap on the emissions allowed from EfW plants across the country.

Understandably, there have already been many public reactions to the news from prominent players in the renewable energy sector, all echoing a similar sentiment.

For example, the CEO of Encyclis has gone on record as saying that the expansion will have a “profound effect” on the sector, going on to state that “the scheme needs careful consideration to avoid unintended consequences, whereby landfilling or waste exports become the default option again.”

Alongside this, Viridor’s Chief Sustainability Officer said: “We need to ensure that the policy starts off as simply as possible with complexity building over time so that all sector customers can get used to the new rules and act to reduce the carbon content of waste in order to respond to the Emissions Trading Scheme signals.”

What’s more, the Environmental Services Agency (ESA) has stated that the move represents a “seismic shift” in waste treatment for the UK, going on to warn that the proposals must be “carefully designed” to achieve their goals and avoid “unintended” consequences.

Consensus seems to be that this inclusion must be carefully planned and pushed forward with caution. But, overall, is the inclusion of EfW in the ETS a good thing?

What the inclusion achieves that is undoubtedly positive is lay increased focus on the need to recycle materials, drive down waste, and further decrease carbon emissions which, of course, contribute to nearing Net Zero goals; EfW plants under the ETS that emit more carbon than their allowance will need to buy a permit for the additional emissions – either from government or from other emitters who have used less than their allowance.

However, on the flip side of the figurative coin here, as the CEO of Encyclis suggests, this could increase reliance on landfill and waste exports.

Going one step further with this viewpoint, there is the very real possibility that including EfW plants within the Scheme would increase operating costs, deter funders from investing in future projects and lead to a lack of confidence in Energy from Waste as a viable waste treatment option within the UK.

Essentially, this is not a sustainable solution; putting yet more hurdles in place to deter development.

This feels counter productive as Energy from Waste plants contribute around 3.2% of total net UK power generation (9,428GWh as reported in 2022) whilst also decreasing reliance on landfill, and finding a sustainable way to practically reuse waste.