As the sun continues to shine, providing us with a glorious summer, the wheels of waste legislation keep turning, meaning there is no opportunity to put our feet up and bask in the heat, as there is still much to do!
Since my previous blog in July, the Department for Energy Security and Net Zero (DESNZ) has published their long-awaited response to the Emissions Trading Scheme (ETS) consultation (well…partly at least!). Members can read the LARAC briefing here. Although the response didn’t provide Local Authorities (LAs) with the anticipated information around the costs that may be passed down to them from Energy from Waste (EfW) operators, or any potential financial support for these, we did get a bit more information around the Monitoring Reporting and Verification (MRV) period.
The MRV is a framework used to ensure accurate and transparent accounting of greenhouse gas emissions, and with regards to the ETS, will be used to determine how emissions from waste treatment are measured and managed. This is obviously key to ensuring any cost pass through to customers – including LAs – is as accurate and fair as possible.
The MRV will be carried out by EfW operators on a voluntary basis over a two year period commencing on 1st January 2026, and is intended to inform ongoing policy decision making, which will be included in a subsequent consultation response, although it is unclear at the moment when that will be published.
LARAC highlighted to DESNZ when we responded to the consultation last year, that LAs have little to no influence over the decarbonisation of residual waste, largely due to LAs limited powers of enforcement over citizen behaviour. DESNZ have outlined in their recent response that due to these LA challenges,
“local authorities will not be expected to cover full ETS costs. The [ETS] Authority will confirm proposals to help local authorities to manage the impacts of the scheme before facilities are exposed to the carbon price in a subsequent Authority Response” and “The UK ETS will align with pEPR so that the additional carbon costs incurred by local authorities for disposing of packaging materials through incineration are considered as part of the calculation of the pEPR payments for the efficient management of household packaging”.
This is some positive news at least, although how this will be applied through the EPR process is yet to be seen, but is likely to be closely linked to the efficiency and effectiveness approach to LAs. On that note, I am delighted to announce that myself and LARACs Vice Chair James Ward have been accepted to sit on the newly formed Effectiveness and Efficiency Technical Advisory Committee, which will enable us to continue to ‘be the voice of Local Authorities’ around the ETS fees, and other aspects of the scheme.
