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Defra provides model landfill allowance trading contract

A model landfill allowance trading agreement to help councils draw up water-tight trading contracts has been published by Defra.

Designed to help waste disposal authorities to trade landfill allowances legally and fairly, the document also provides suggestions for extra clauses they may wish to consider.

Proposals such as a dispute resolution clause and an agreement to accept goods and services in place of cash are put forward as options for authorities to look at.

Explanations of the Landfill Allowance Tracing Scheme, which aims to reduce the amount of biodegradable municipal waste going to landfill by 2010, also clears up possible confusion over the scheme.

On the scheme, councils are set yearly limits on their landfilling in the form of allowances, which can be traded between authorities.

Tailored
Writing in the guidance notes, authors Enviros Consulting said: “Through the flexibility of trading, banking and borrowing, Waste Disposal Authorities can develop the most cost-effective strategy for meeting their waste targets, tailored to their specific circumstances.”

Sam Greenley, who has helped trade 5,000 allowances on behalf of Cambridgeshire county council, welcomed the publication.

Related links:

Defra: Model LATS trading contract

Defra: LATS

She said: “Being able to follow a standard document is sound logic. It would be particularly useful for future trades – where there is a long term commitment it would be very sensible to wrap it all up so that parties cannot back out.”

The document, which can be found on Defra's website, is accompanied by a LATS register – which records the movement of allowances between councils – and a bulletin board, to help authorities find potential trading partners around England.

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