By Jaime Llinares Taboada
The U.K. government has proposed extending its Emissions Trading Scheme so that it also covers the maritime and waste sectors.
In a consultation document published Friday, the government sets out proposals to expand the carbon market to the domestic maritime sector. It also calls for evidence on including the waste incineration and energy-from-waste industries as well.
The document notes that domestic shipping accounted for 5% of U.K. transport greenhouse gas emissions in 2019, more than the rail and bus network combined. The government proposes including the domestic maritime industry in the U.K. ETS system by the mid-2020s.
"Our aim is to price in some of the externalities of conventional marine fuels, therefore encouraging investment in energy efficiency and alternative fuels," the document says.
There is also a proposal to expand the emissions market to waste incineration and energy-from-waste by the mid-late 2020s.
The document argues that the ETS system could encourage technologies or practices that reduce emissions from waste incineration and energy-from-waste facilities, including investment in carbon capture and storage. It could also encourage more companies to supply heat, or to use chemical recycling.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT
(END) Dow Jones Newswires
03-25-22 0632ET
