Scottish councils face £28 million cost from extending carbon pricing to energy-from-waste plants
endswasteandbioenergy.comA new report warns that Scottish councils could face combined costs of around £28 million when the UK Emissions Trading Scheme (ETS) is extended to cover Energy-from-Waste (EfW) facilities. The extension, part of broader efforts to price carbon emissions from waste incineration, would require councils to purchase allowances for the CO2 released by EfW plants they operate or contract with. The report suggests that Extended Producer Responsibility (EPR) schemes for packaging waste could offset some of this financial burden by shifting costs back to producers. The policy change reflects a growing trend to include waste sector emissions in carbon markets, which have historically focused on power generation and heavy industry. For Scottish councils, the added cost creates a direct financial incentive to reduce waste volumes, increase recycling, and explore alternatives to incineration. However, the net impact will depend on how EPR revenues are allocated and whether councils can pass costs through waste contracts. The report underscores the need for clear accounting rules to avoid double counting and ensure the carbon price drives genuine emissions reductions rather than just shifting costs.
