The proposal forms part of its recently released “Economic Rescue Plan”, which came ahead of the Autumn Budget today (28 October 2026).
The ETS is a trading schemes which caps total emissions from high-polluting industries and allow companies to buy, sell, or trade emission allowances to incentivise reductions to support the net zero goals.
The scheme was due to be extended to include Energy from Waste (EfW) from 2028, but was delayed indefinitely in August 2026.
While the new date for the expansion of the scheme has not been confirmed by the government, it is set to be linked with the EU scheme which will phase in waste from 2031.
Reform’s plan features 65 “alternative suggestions”, including several that the party claims in total would “save households £250 per year on their energy bill”.
The document suggests that the ETS adds approximately £90 per year to an average household’s energy bills.
Reform said that how the abolition would be achieved would be dependent “on legal advice”.
An addendum states that options could include repealing the entire scheme, abolishing the surrender obligation, or flooding the market with allowances.
The move from Reform follows proposals from the Conservative Party to abolish the Environment Agency (EA) and scrap the extended producer responsibility for packaging (pEPR) scheme.
The proposals were set out during the party’s annual conference in Birmingham earlier this month (5 October 2026).
The Conservatives argued that removing the scheme would take a £1.5 billion “burden” away from businesses, with the party suggesting this could ultimately help reduce the cost of the weekly shop.
Inclusion of EfW in ETS delayed
In August this year, DESNZ confirmed that the inclusion of EfW in ETS would be delayed in an update to the original ETS consultation page.
The new timeline has not yet been confirmed, with the government saying it will be set out “in due course”.
A statement from DESNZ read: “We are aware that a lack of certainty regarding expansion of the UK ETS to waste incineration is undermining the ability of local authorities and industry to plan and budget for the future.
“We can confirm that expansion of the UK ETS to waste incineration will not take place in 2028 as originally intended.
“A new timeline will be set out in due course, along with full details on final policy design, with sufficient time for the waste sector to implement.”
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