The UK Emission Trading Scheme (ETS) Authority has launched a consultation on expanding the UK ETS to include the energy from waste and waste incineration sectors. The Authority noted it does not intend to include chemical recycling facilities in the extended scope.
The UK ETS is a cap-and-trade system which caps the total level of greenhouse gas emissions. It requires operators under the scheme to obtain allowances for every unit of carbon they emit. These allowances can be traded between participants, generating a carbon price that spurs businesses to invest in cleaner or renewable energy sources and improved energy efficiency.
The scheme came into operation on Jan. 1, 2021, following the UK's departure from the European Union. It currently applies to the aviation, power, and industry sectors. The Authority is now proposing to extend it to the waste and waste incineration sectors.
The Authority is proposing to include the following regulated activities in the scope of the ETS: Advanced Thermal Treatment (ATT), Advanced Conversion Technology (ACT), and other related advanced waste treatment activities. Its proposal also includes waste-to-fuel activities, including the production of sustainable aviation fuel (SAF).
The consultation document notes that the Authority does not plan to include chemical recycling within the scope of waste incineration or waste-to-fuel activities.
“Our intention is to only capture facilities in the UK ETS that are performing energy recovery activities, or those that produce fuels for burning,” the document reads. “We do not intend to capture facilities that break down waste into polymers and monomers that are then used as raw materials for products that remain in the circular economy, which is a form of recycling. We are aware that some facilities may produce both fuels and polymers and monomers to be used as raw materials in the coming years, and we will consider this further before coming to a position.”
Given that chemical recycling facilities often output fuels as well as polymer precursors, the Authority is asking for feedback on the following questions:
- “Do you agree that facilities that produce monomers and polymers from waste that can be used as raw materials (non-mechanical or ‘chemical’ recycling) for materials to remain in the circular economy should not be included in the scope of our proposals?
- If yes, how should we treat facilities that produce both fuels and polymers and monomers to be used as raw materials? Please give further details to support your answer.”
The consultation is open until July 18 and can be accessed here.
UK-based recycling and waste management company Viridor reacted positively to the plans of exempting chemical recycling from the expanded ETS.
"It is really positive and important that the government has acknowledged the role of Chemical Recycling in enhancing the UK's circular economy and we welcome the plans to exempt chemical polymer reprocessing facilities as part of the Emissions Trading Scheme,” said Lee Hodder, managing director of Viridor Polymers.