Commission Plans to Bring Waste-to-Energy into EU-ETS

Key Takeaways

• EU Commission proposes phasing municipal waste incineration into the ETS from 2031 to 2034.
• Plants must surrender allowances for a rising share of emissions: 25% (2031) up to 100% (2034).
• Co-incineration plants in outermost EU regions may be exempted.
• States can opt out until 2035 if they meet two of three conditions: a CO2 tax, on-track recycling, or landfill targets.
• It forms part of a wider circular economy package, alongside the upcoming Circular Economy Act.

The European Commission today adopted a review of the EU Emissions Trading System (ETS) that proposes bringing the incineration of municipal waste into the scheme. The change would be introduced gradually between 2031 and 2034. The Commission says this timeline gives local authorities and operators greater planning certainty. Moreover, it supports the EU’s waste and climate targets.

Phased Introduction from 2031 to 2034

Under the proposal, plants would need to surrender allowances for a rising share of their verified emissions from waste incineration each year. That means 25 per cent of emissions reported for 2031, 50 per cent for 2032, 75 per cent for 2033, and 100 per cent for 2034 and every year after that.

Exemptions are possible for waste co-incineration plants in the EU’s outermost regions.

National Opt-Out until 2035

Member states could apply a national opt-out until 2035 if they meet two of three conditions. First, an equivalent national CO2 tax is in place. Second, the country is on track to meet its recycling targets. Third, it is on course to meet its landfill target, or has set a lower landfill target.

The proposal includes measures to support the waste incineration sector, among them continued support for district heating. There will also be funding for cleaner technologies and carbon capture. In addition, the proposal includes priority use of ETS revenues to improve local waste management.

Part of a Wider Circular Economy Package

Including waste incineration in the ETS is one element of a broader package that also includes the upcoming Circular Economy Act. This Act is intended to promote waste prevention, reuse and recycling. At the same time, it introduces stricter safeguards against any increase in landfilling.

Read More

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