Councils urged to use full ‘flexibility’ of LATS

Speaking as the Agency published a report outlining councils' progress three years into the Landfill Allowance Trading Scheme (LATS) system, its chief executive, Dr Paul Leinster, highlighted the benefits councils could gain from using it.

The LATS scheme is unique in Europe in giving local authorities flexibility in how they meet their landfill diversion targets by buying, borrowing and selling allowances as market demand fluctuates

 
Dr Paul Leinster, Environment Agency

“We recognise that exceptional market conditions could make it more challenging for local authorities to meet recycling targets,” he said

“However, the LATS scheme is unique in Europe in giving local authorities flexibility in how they meet their landfill diversion targets by buying, borrowing and selling allowances as market demand fluctuates,” he added.

The LATS system provides a market for England's councils to trade, borrow, bank or bring forward landfill allowances according to the amount of residual waste they expect to landfill in a particular year, with their allocation being reduced year-on-year to allow the UK to meet its targets under the EU Landfill Directive.

Markets

And, Dr Leinster emphasised the important role the flexibility of the system could play as the UK looks to meet its landfill diversion targets for 2013 and 2020 despite the problems being faced at the moment with securing end markets for collected recyclables (see letsrecycle.com story).

“Thanks to the hard work of local authority staff, the amount of biodegradable waste going to landfill is significantly lower, but the current market situation is a reminder that there can be no room for complacency,” he said.

And, with regards the EU's targets for 2013 and 2020, he added: “Local authorities collectively will need to step up their diversion of biodegradable waste to meet all the targets, and should utilise all the flexibility within the LATS system.”

The EA report, which is based on data submitted by councils in 2007-08, highlighted a number of local authorities who had used the 'flexibility' of the system to remain within their allocation.

These included the London borough of Tower Hamlets, which landfilled 26.2% more of its municipal waste than it was allocated in 200708, but purchased LATS allowances to remain within its allocation, while, due to having a large surplus, Hampshire county council sold 22.8% of its total to three other local authorities.

Allowances

And, the report details that while 12 other councils landfilled above their 2007-08 allocations, 11 were able to use banked allowances, five brought allowances from other authorities and one brought forward LATS from 2008-09 in order to stay within their allocations.

As a result, no English council was liable for penalties under the LATS scheme for exceeding its allocation.

Overall, the report showed that 10.6 million tonnes of biodegradable municipal waste was landfilled in 2007-08, with the limit for the first target year of the EU Landfill Directive, 2009-10, set at 11.2 million tonnes.

The praise for the LATS scheme comes despite councils revealing in July 2008 that a combination of increasing recycling rates and new infrastructure coming on-line meant that they were unable to sell surplus allowances they had accumulated, and that LATS prices were low (see letsrecycle.com story), causing some to 'write-off' their surpluses.