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Letter: Advice on implementing the expansion of the UK ETS

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1. Outline

This is a letter from Professor Piers Forster, Interim Chair of the CCC to Minister Jones, Minister of State for Industry in response to a request for advice on implementing the expansion of the UK Emissions Trading Scheme (UK ETS) to include Energy from Waste (EfW) and waste incineration from 2028.

2. Key messages

  • The Committee is supportive of the inclusion of EfW and waste incineration in the UK ETS, but we recommend that the ETS Authority does not increase the overall cap on emission allowances when EfW and waste incineration are added.
  • Not increasing the cap while including EfW and waste incineration in the UK ETS offers an opportunity to tighten the ETS, increasing its effectiveness in driving decarbonisation (including deployment of recycling) and reducing the burden placed on the non-traded sectors.

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