ETS for EfW Webinar Q&A: Is there a risk that EfW price hikes could result in more waste being sent to landfill?
Following our recent webinar with Materials Recycling World about the impact of bringing Energy from Waste under the Emissions Trading Scheme (ETS) for independent waste operators, we’re answering some of the audience’s questions.
In this blog, we’ll answer the question: is there a risk that EfW price hikes (£170 per tonne – £100 disposal and £70 tax) could result in more waste being sent to landfill? And, will similar carbon taxes be placed on sending general waste to landfill?
There is already a significant move toward making landfill an unattractive and financially onerous disposal route for waste operators. Defra’s decision to halve the amount of residual waste sent to landfill from 2042 is just one initiative intended to lengthen the lifespan of landfill assets and support the UK’s goal of Net Zero by 2050 by forcing operators to choose other offtake routes. Legislation is moving towards greater decarbonisation and waste segregation.
Taxes will go up, not down.
Over the last week, the Chancellor has announced a 20+% price hike to Landfill Tax as part of the 2024 Spring Budget, and further increases can no doubt be expected. The government has to make landfill financially punitive to drive behavioural change. It’s likely that the cost of landfill will need to increase further to ensure that EfW, even with the hefty price hikes from ETS, is the more affordable and, therefore, used disposal route.
However, much more work is needed in the sector to highlight that EfW isn’t the only option and that other alternative, more innovative, and financially favourable disposal routes exist.
Embracing innovation
Solutions such as Advetec’s biotechnology, which essentially acts as a mini Mechanical Biological Treatment (MBT) plant, divert 100% of non-recyclable waste previously destined for landfill or incineration and turn it into SRF, opening up other offtake routes.For example, it can be used as a coal replacement product to help heavy industries decarbonise, like cement manufacture (which is actively looking for fuel with a higher proportion of biogenic content because it lowers its ETS obligations). Once non-recyclable waste has been turned into SRF, it’s also well suited for gasification, further recycling, and conversion into hydrogen to power cars and plants.
Waste handlers can put Advetec’s cost-effective biotechnology on-site and configure it to fit within their existing operations without requiring significant capex or vast amounts of time to make it happen. It gives independent waste handlers the means to harness innovation, protect profits, and guard customers against price increases by accessing an offtake route that was previously unavailable to them. It’s also a localised solution that reduces mileage, takes collection lorries off the road, and throws a lifeline to remote communities where waste infrastructure is often lacking.