In July 2025, the UK government (along with the Scottish
government, the Welsh government, and the Department of
Agriculture, Environment and Rural Affairs for Northern Ireland)
(together "the Authority") published an interim response
to the consultation on the expansion of theUK Emissions Trading
Scheme ("UK ETS"). This has reconfirmed plans to include
energy-from-waste ("EfW") operations within the scope of
the UK ETS beginning in 2028, signaling a major change to the waste
and resource management sector.
The UK ETS, in operation since January 1, 2021, and based upon
the EU ETS following Brexit, currently applies to major emitters of
carbon emissions, such as power stations, industrial plants, and
the aviation sector. It sets a declining cap on greenhouse gas
emissions from covered sectors and requires operators to monitor,
report, and surrender allowances for their fossil fuel carbon
dioxide emissions, pricing pollution in line with the
"polluter pays" principle.