The decision to scrap the 2028 target for expanding the UK Emissions Trading Scheme (ETS) to waste incineration is a massive relief for local authorities and the waste sector, but it leaves a gaping strategic void.

While the original 2028 timeline was fast approaching and carried the threat of imposing crushing financial strains on already stretched local councils – with gate fees projected to spike dramatically – leaving the policy open-ended creates a dangerous holding pattern.  

Decarbonisation is critical, but penalising Energy from Waste (EfW) without a functioning, systemic alternative for non-recyclable residual waste is a cart-before-the-horse policy. EfW plays a vital, non-negotiable role in processing what cannot be recycled and diverting material away from landfill. Rushing a carbon-pricing mechanism onto facilities without first solving upstream product design or providing the infrastructure to clean up the residual waste stream would have weaponised the tax against the very public bodies least equipped to change it.

The sector needs breathing room, clarity, and a realistic roadmap – not indefinite ambiguity, and true decarbonisation of residual waste won’t happen through sudden financial shocks; it requires proper time to plan capital investments, build out local infrastructure like anaerobic digestion, and ensure that the cost burden isn’t stealthily shifted straight down to local taxpayers.