Skip to content

Authorised IMDS & CDX Training & Consulting partner for

UK Suggests Adding Waste Sectors and Greenhouse Gas Removal to the Emissions Trading Scheme

The UK Emissions Trading Scheme Authority has published a package of consultations on expanding the UK Emissions Trading Scheme, to further limit carbon emissions.

  • More details on intentions to include the waste incineration and electricity from waste industries in the UK Emissions Trading Scheme.
  • Increasing the program’s scope will guarantee that more emissions are limited.
  • Views are also being sought about ideas to expand the scheme’s scope to include greenhouse gas removal systems established in the UK.

A set of consultations on extending the UK Emissions Trading Scheme (ETS) to the energy from waste and waste incineration industries was released today by the UK Emissions Trading Scheme (ETS) Authority. Additionally, it is consulting on whether superior nature-based removals may be appropriate for the plan, as well as how manufactured greenhouse gas removals, including direct air carbon capture, could be incorporated. 

The UK’s strategy for combating climate change heavily relies on the ETS. Operators operating under the program must receive permits for each carbon unit they produce. Businesses are encouraged to invest in cleaner or renewable energy sources and increased energy efficiency by the carbon price created by the trading of these allowances amongst participants.

Although the aviation, electricity, and industrial sectors are now covered by the UK ETS, the Authority has been investigating how carbon pricing may promote decarbonization throughout the economy since the Authority was founded in 2021. 

In order to further reduce carbon emissions and promote the transition to net zero, stakeholders are encouraged to provide feedback on the two consultations. It comes after earlier pledges to consult that were made as part of significant program changes last year.  

The 2 consultations cover:  

  • How fossil CO2 emissions from trash incineration and electricity from waste will be added to the UK ETS starting in 2028. Together with no requirement to buy or give up UK ETS credits until their full membership in 2028, this also contains a 2-year phase-in period for the sector starting in 2026 during which emissions will be tracked, reported, and certified. This would facilitate the adoption of decarbonization technology by industry, complementing previous efforts to decarbonize the sector.
  • How the UK ETS may be connected with tailored greenhouse gas removal technologies developed in the UK, including Direct Air Carbon Capture, which removes carbon dioxide from the air and stores it permanently. The goal of this is to provide GGRs a stable market throughout time. It also inquires as to whether the UK ETS may incorporate carbon sequestered by the establishment of new forest in the country.

These will be followed in due course by two more consultations on how to recognize non-pipeline ways of transporting collected CO2 into storage, such as road, rail, or shipping, and how to extend the UK ETS program into the domestic marine sector starting in 2026.