A planned tax on burning waste could place billions of pounds of unavoidable costs on councils and needs reform, the LGA has said.
The Emissions Trading Scheme (ETS) puts a market price on carbon emissions. It currently applies to the aviation industry, and the last government proposed expanding it to cover the incineration of waste from 2028, which councils support.
However, councils have no powers to reduce the amount of fossil-based material put on the market, and no meaningful levers to reduce the levels of fossil-based waste sent for incineration, nor do they have the ability to deliver the infrastructure to recycle plastics or capture carbon.
In a new report, the LGA has warned that the ETS could cost councils £747 million in 2028, rising to £1.1 billion in 2036, with a total cost over this period of up to £6.5 billion – forcing councils to cut back waste services, rather than targeting manufacturers that have the power to reduce plastic production.
Cllr Adam Hug, LGA Environment Spokesperson, said: “Councils want a reduction in carbon emissions and support the aims of the scheme, but… current proposals are hitting the wrong target.
“They will load billions of pounds of extra costs onto councils, who will have little choice but to cut back valued local waste and recycling services and net zero projects, while producers of fossil-based materials avoid incentives to reduce what they produce.
“The Spending Review is an opportunity for government to review these proposals and force producers of fossil-based waste to reduce the amount of plastic entering the market.”