UK ETS waste expansion delayed: What changed, and how this may benefit operators.
The UK ETS Authority has confirmed that waste incineration will not enter the UK Emissions Trading Scheme (UK ETS) in 2028 as originally intended. For industry and local authorities, the key point is that inclusion has not been cancelled, the timetable is shifting, and the final policy design is still to come.
What do we know?
In its 2024 consultation on expanding the scope of the UK ETS, the Authority proposed bringing waste incineration and energy-from-waste facilities into the scheme. The proposed approach began with a voluntary monitoring, reporting and verification (MRV) period from 1 January 2026, followed by full inclusion from 1 January 2028.
The latest update, released 26/08/2026, confirms that expansion of the UK ETS to waste incineration will not take place in 2028 as originally planned. A new implementation timeline will be published in due course, alongside with the final policy design.
Why has it been delayed?
In July 2026, the European Commission announced a delay to the inclusion of waste incineration in the EU Emissions Trading System (EU ETS). Waste is now expected to be brought into the scheme gradually from 2031, with full inclusion from 2034. This would have created a significant gap between the EU ETS and the UK’s original 2028 timetable, which may have complicated any future alignment between the two schemes.
Why may the delay benefit operators?
By delaying the mandatory inclusion of waste in the UK ETS, the immediate financial and regulatory burden on operators is also delayed. This gives operators more time to understand reporting requirements, test monitoring methodologies and prepare for future compliance. Although it has not been confirmed that the voluntary MRV-only period will be extended, many in the sector expect this to be the case. There are many reasons why joining the voluntary MRV-only period makes strong business sense, read more about this here.
With more updates expected, here at Swan Energy we are following the development of Waste Incineration and the UK ETS closely and will continue to provide updates as it evolves.
If you’d like support navigating what’s to come, our team is here to help so please get in touch.
