Research from the Local Government Association (LGA), County Council Network (CCN) and District Councils Network (DCN) has found that EfW’s inclusion in the Emissions Trading Scheme (ETS) could cost local authorities a cumulative total of £6.5 billion over the next decade. 

The cost for the ETS, which will include the energy from waste sector in 2028, currently falls on local authorities. In response to the ETS consultation released by the government last May, councils have demanded that the Government review where these costs are allocated. Now, the analysis by LGA, CCN and DCN has revealed as much as £747 million of costs could fall on councils in 2028 and £1.1 billion by 2036. 

Cllr Adam Hug, environment spokesperson for the LGA said that councils support the scheme’s objective to reduce carbon emissions and encourage recycling efforts. However, if ETS costs are left to councils, there is no real incentive for industry to reduce its waste and carbon emissions.

Current proposals risk councils and local taxpayers facing enormous costs, which simultaneously risks the scheme failing to meet its objectives while exposing councils to significant additional financial risk,” he added. 

The LGA believes the most effective way for the scheme to work would be to pass costs onto industries creating fossil-based material in the first place, such as packaging, textiles, electricals and furniture.

Efforts to pass costs onto industry have already started with the extended producer responsibility (EPR) scheme for packaging. However the LGA does not feel this goes far enough, their new analysis suggests this will only cover 19 percent of costs. “We urge government to review proposals,” said Cllr Adam Hug. “To hold industry responsible for reducing the level of waste it creates in the first place, alongside wider support for councils in their efforts to increase recycling.”