German operator association ITAD challenges the current emissions trading rules for waste treatment, citing rising costs and uncertainty. Which alternatives the association proposes for the sector’s future.
Key Takeaways
- ITAD criticises the current emissions trading rules for waste treatment, citing rising costs and administrative burdens.
- The dual obligations under nEHS and EU-ETS impose high reporting workloads and lead to increased disposal fees.
- ITAD proposes using the EU-ETS-I price as a reference to stabilise pricing and reduce planning uncertainties.
- The association suggests creating a European framework for BECCS and promoting CCU to enhance carbon recovery and recycling.
- ITAD calls for funding instruments to support investment and operational costs for carbon capture, recognising the contributions of thermal treatment.
In a statement on the German government’s climate protection programme, German operator association ITAD has assessed the national emissions trading scheme (nEHS) as unsuitable for the thermal waste treatment sector. The organisation highlights persistent challenges with the scheme, which is governed by the Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz, BEHG), even after two years of practical application.
ITAD is calling for the reversal of the inclusion of thermal waste treatment in the national emissions trading scheme, advocating instead for a framework that considers the specific requirements of the sector.
Dual Obligations and Rising Costs
A primary point of criticism is the dual reporting obligations for waste incineration plants, which fall under both the national nEHS and the European Emissions Trading System (EU-ETS). This results in a high level of administrative work.
Furthermore, the inclusion in the emissions trading scheme has led to substantial cost increases in disposal fees. In some regions, incineration prices have doubled, placing a burden on citizens and businesses.
Planning Uncertainty and Price Instability
The industry faces significant planning and price uncertainties. The certificate price for the nEHS from 2027 is intended to be based on the EU-ETS II, a market that is not yet in existence. This makes the calculation of economic plans difficult for the sector.
To counter this, ITAD proposes setting the EU-ETS-I price as the reference price for the nEHS. This measure would aim to prevent price uncertainties between the two emissions trading systems.
Proposals for Decarbonisation and Support
ITAD argues that the emissions trading scheme does not adequately account for or promote the positive contributions of thermal treatment, such as the utilisation of waste heat and the recovery of metals. The organisation has put forward several proposals to better integrate the sector into the climate protection programme.
These proposals include the creation of a European framework for Bioenergy with Carbon Capture and Storage (BECCS) and the promotion of Carbon Capture and Utilisation (CCU) to recover and recycle carbon. ITAD also calls for a revision of the Carbon Management Strategy (CMS), urging that process-related CO₂ emissions be recognised as unavoidable.
Additionally, a demand has been made for a specific funding instrument tailored to the sector’s needs, which would support both investment costs (CapEx) and operational costs (OpEx) for carbon-capture-plants. ITAD also suggests creating a uniform process within the climate protection programme to recognise heat and electricity from thermal waste treatment plants, thereby promoting the substitution of primary raw materials and the decarbonisation of district heating networks.
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