UK carbon trading to include waste-to-energy, carbon removal


Stoke on Trent incinerator recycling centre based in the midlands Staffordshire (Photo: iStock)

The UK ETS Authority announced that it is launching a consultation on the inclusion of waste-to-energy, waste incineration, and carbon removals in the carbon emissions trading system. The authority revealed the announcement on May 23 and aims to expand the UK's carbon emissions trading system.

New sectors in UK carbon scheme

The UK's carbon emissions trading scheme has replaced the European Union Emissions Trading System (EU ETS) from 2021. This scheme is a crucial tool for the UK to achieve its net zero emissions target by 2050.

Currently, it covers high carbon-emitting industries such as aviation, power generation, and manufacturing. Since then, the regulatory authorities have continuously sought measures to improve the scheme, considering the inclusion of more industrial sectors to drive decarbonization efforts across various industries in the UK.

Last year, the UK ETS Authority decided to include waste-to-energy and waste incineration, as well as carbon removal technologies in the scheme's regulation. In short, businesses will be able to integrate practices such as converting waste into biofuels or using carbon removal technologies to remove greenhouse gases from the atmosphere into the UK's carbon emissions trading scheme.

Carbon removal tech consultation ongoing

The consultation on the waste-to-energy and waste incineration industries will run until July 18. The consultation includes the proposal for the UK Emissions Trading Scheme (ETS) to implement a two-year phasing-in period starting in 2026 and discusses the details of including waste-to-energy and incineration in the regulations starting in 2028.

During the period, emissions from this sector will be monitored, reported, and verified, but businesses will not be required to buy or surrender allowances under the ETS regulations.

As for the consultation on carbon removal technologies, it will continue until Aug. 15. The topic would be how to integrate UK-developed carbon removal technologies, particularly Direct Air Carbon Capture (DAC), into the trading scheme, while establishing a long-term market for this technology.

The directors of the UK ETS Authority's management department said in a joint statement that, this consultation which expands its regulatory scope to include the waste-to-energy and incineration sectors also sends a clear signal to the carbon reduction investment market. This is expected to promote related carbon reduction investments and foster the development of the UK's carbon removal technology market.

Source: Carbon HeraldGOV.UKgasworld

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