EU  to Phase Waste Incineration Into Emissions Trading From 2031

The European Commission plans to bring municipal waste incineration into the EU Emissions Trading System from 2031 – three years after the UK scheme is expected to take full effect.

This requires operators to purchase carbon permits for a growing share of their carbon emissions, with full coverage expected by 2034:

• 25% emissions in 2031
• 50% emissions in 2032
• 75% emissions in 2033
• 100% emissions by 2034

This applies to almost every municipal-scale incinerator across the EU, as it includes non-hazardous waste incineration and co-incineration plants that have the capacity to exceed three tonnes per hour.

Exemptions

Member states can delay their participation until 2035, if they are able to meet at least two of three conditions:

• They already apply an equivalent carbon tax.
• They are hitting EU recycling targets.
• They are meeting EU landfill diversion targets.

Waste-to-energy plants that supply district heating are able to receive free permits.

Remote plants in EU overseas territories (e.g. the Canary Islands and French Guiana) are also exempt until 2035.

Implications for the UK

Waste incineration is due to be included in the UK’s ETS from January 2028.

There is concern about the time delay regarding the implementation in the EU compared to the UK.

During the transition period between the UK’s introduction and the EU’s implementation, there is a risk of waste material entering EU countries from the UK due to the lower carbon costs.

For more information, click here to read the Resource Media article.