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Scottish Executive consults on landfill allowance trading

The Scottish Executive has launched a consultation into landfill allowance trading among local authorities in Scotland, which could see a pilot year beginning July 2004.

The framework for the new system was laid down in the UK Parliament in the Waste and Emissions Trading Act 2003, but Scotland requires regulations to be laid down in its devolved Parliament before the system can come into force in 2004-05.

Landfill allowance trading will see local authorities in Scotland given yearly allowances on the amount of biodegradable municipal waste (BMW) they send to landfill. These landfill allowances will combine to reach Scotland's national landfill diversion target – under its National Waste Plan, Scotland must reduce the level of its biodegradable waste going to landfill by 65% before 2020, based on 1995 waste levels.

But, local authorities will be able to trade surplus allowances with each other to add some flexibility. The total allocation of BMW allowance for Scotland in 2004-05 is expected to be 1.89 million tonnes.

Announcing the consultation, Scotland's environment minister Ross Finnie said: “This innovative scheme will enable local authorities to reduce the amount they landfill in a cost effective and flexible way. It will encourage them to divert biodegradable waste away from landfill sites, reducing the overall levels of methane emissions.”

He added: “The scheme is a crucial element of the National Waste Plan and is a vital mechanism for meeting Scottish and European targets for reducing landfill.”

Pilot year
The Executive proposes to start the scheme in July 2004, almost a full year before landfill trading begins in England – expected to be April 2005. But, the Scottish Executive has suggested treating its first scheme year as a pilot year, which would see Scottish councils allocated allowances but unable to trade those allowances while facing no penalties for non-compliance. The full system would then begin in 2005-06.

The Scottish consultation paper, Reducing Landfill: A Landfill Allowance Scheme, explained: “In this pilot year, there would be no opportunity to trade allowances, and no financial penalty would be imposed on local authorities who landfill more than their limit. However, given the lower limits for 2005/06, exceeding its limit for the year will clearly be of great concern to any local authority. As an added incentive, the Executive is considering allowing, on a discretionary basis, a degree of carry forward to 2005/06 for clear over-achievement of targets in 2004/05.”

The full consultation, Reducing Landfill: A Landfill Allowance Scheme, is available on the (see letsrecycle.com story)
Scottish Executive website.

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