While the association said it is “broadly supportive” of including the waste sector within the ETS, it noted potential challenges, and the requirements have been set out to avoid “an unavoidable expense” that is then passed down to local authorities.
To help safeguard local authorities from these issues, LARAC is recommending the following:
- Relevant ETS costs are covered by Packaging Extended Producer Responsibility (pEPR).
- New Burdens Funding to cover the increased costs for the management of waste as a result of the expansion of ETS
- Successful implementation of the Collection and Packaging Reforms (CPR)
- Expansion of EPR to non-packaging items
- Clarification on the use of funding
It is understood that the funds generated through the inclusion of the waste sector in ETS will go to HM Treasury and not be ringfenced or directly reinvested in the sector. LARAC stated that it would like to see the money used in a similar way “to that in Germany”, where its scheme is said to reinvest around 90% of the funds generated in decarbonisation projects.
‘A step in the right direction’
Cathy Cook, LARAC chair, commented: “Including the waste sector in the ETS is a step in the right direction for decarbonisation. However, it is crucial that the financial burden does not directly or otherwise, fall onto local authorities who are already under significant financial pressures and have limited mitigation opportunities.
“Our recommendations aim to ensure that the scheme is implemented in a way that supports local authorities while decarbonising our sector.”
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