Frequently Asked Questions
How does the EU Emissions Trading Scheme (the "EU ETS" - also referred to as CCTS, and CDM) affect the Waste Industry?
First of all - both hazardous and municipal waste incinerators will not be subject to the scheme.
However, the burning of landfill gas (either on its own or mixed with other fuel) is included in the scheme. (The scheme actually specifies that to fall within the scheme the gas must be burnt either on its own or mixed with other fuel, in a combustion installation with a rated thermal input of 20MW or greater.)
I am operating a flare which is burning landfill gas with a rated thermal input of more than 20MW. What will this mean for me?
You will not be allowed to operate your flare without a "Green House Gas Permit" ("permit"), after 31 December 2004.
How did this come about?
On 13 October 2003, the European Parliament and Council adopted a new Directive to establish a method for the trading of greenhouse gas emissions (the "EU ETS). On 31 December 2003, the UK Government passed regulations implementing the EU ETS, (known as The Greenhouse Gas Emissions Trading Scheme Regulations 2003).
When does the EU Emissions Trading Scheme start?
The EU ETS starts on 1 January 2005 throughout the EU.
What is the purpose of Emissions Trading?
The overriding purpose is to facilitate businesses which fall within the scheme to comply with the emissions targets which will be set by the EU governments, with the ultimate goal of the EU achieving compliance with the promised reductions in Carbon Dioxide emissions in order to limit the effects of global warming.
On what basis will a "Green House Gas Permit" be issued?
On 19 January 2004 the UK Government issued a draft National Allocation Plan ("draft NAP"), and at the same time a consultation paper explaining the proposals. In the draft NAP provisional figures have been listed for the Phase 1 of the EU ETS (2005 to 2007), with an explanation of how these will be allocated to the existing installations, but for 5.7% which will be held for new entrants in a reserve fund.
The allocation of allowances to individual installations will be calculated according to each installation's average share of annual emissions between 1998 and 2002, excluding the lowest year's emissions. If only one year's data is available this data will be used.
Those in the power generation business (including energy from landfill gas) will be required to take most of the responsibility for carbon dioxide reduction, but to what extent and how exactly this will work will become clearer as time progresses.
How do you obtain a permit?
Apply to DEFRA by 31 January 2005. (NB: Most operators will be familiar with this having already filled in a NAP data form, as requested by the EA/DEFRA.)
Find out more about the Draft NAP from DEFRA's web site.
Click here to read an Enviros Report on EU Carbon Trading.
Click here to visit the Enviros Main web site Climate Change Team page
Contact us here if you seek assistance from our landfill gas team in applying for an EU ETS permit.
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