Waste and Emissions Trading Bill Published

The Waste and Emissions Trading Bill (WET) was published in Parliament last week, which will help the Government to will move forward its policies to combat climate change and to move to sustainable waste management.

Part 1 of the Bill sets up the framework which will require local authorities to reduce the amount of biodegradable municipal waste which they send to landfill through a system of tradable landfill allowances (that is, to reduce biodegradable municipal waste landfilled to 35% of that produced in 1995 by 2020).

Part 2 puts on a statutory footing financial penalties for direct participants in the UK Greenhouse Gas Emissions Trading Scheme (ETS) who fail to comply with their emissions reduction targets. It will also enable the provision of penalties for future trading emissions schemes ensuring that the market for any scheme works effectively.

The UK ETS was launched in April 2002, creating the world's first economy-wide greenhouse gas trading scheme. An auction, held in March 2002, allocated incentive money to 34 Direct Participants (to whom the penalty provisions in the WET Bill apply). About 5,500 companies with Climate Change Agreements (an energy or emission target that secures an 80% discount from the Climate Change Levy, a tax on the business use of energy) can also use the scheme to buy allowances to help meet their targets or sell any over-achievement.

The Department for Environment Food and Rural Affairs (DEFRA) has previously consulted on the landfill scheme. Details on emissions trading and on landfill allowances can be found on the DEFRA website at www.defra.gov.uk.
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