Government Releases UK Emissions Trading Scheme Consultation Response
On 18 July 2025, the UK Government published its response to the consultation on expanding the UK Emissions Trading Scheme to include waste incineration and energy-from-waste facilities.
The response confirms that a voluntary Monitoring, Reporting and Verification (MRV) period will begin from 1 January 2026, ahead of full inclusion of the waste sector in the ETS from 2028. During this initial phase, operators will be required to monitor and report carbon emissions but will not yet face compliance obligations or costs associated with trading allowances.
The government also confirmed its intention to use an integrated approach to carbon monitoring, combining emissions factors with carbon-14 testing to support a more accurate and consistent accounting framework.
Further detail on cost sharing, allocation, and technical implementation is still to be published, with a second consultation response expected in due course. The government stated this will be released “as soon as reasonably practicable.”
Initial industry reaction has been broadly supportive of the phased introduction, with particular relief that the MRV stage will allow time to trial and adjust systems before any compliance costs apply. There was also recognition that local authorities are unlikely to bear full financial responsibility for ETS obligations – a key concern raised during the consultation.
The link to the Government website is here, which includes a link to the main response document, which for ease of reference is here.
The Lets Recycle articles on the announcement are as follows: