Latest news with #emissionsTrading
Reuters
11-06-2025
- Business
- Reuters
Vietnam launches first phase of emissions trading scheme
HANOI, June 11 (Reuters) - Vietnam has formally launched the pilot phase of an emissions trading scheme aimed at encouraging three major industrial sectors to cut the amount of carbon dioxide they produce, the government said on Tuesday. Under the scheme, Vietnam's steel, cement and thermal power producers will be forced to buy allowances to cover their carbon dioxide intensity - the amount of CO2 generated per unit of output, according to a decree issued by the government. The new scheme will cover around 50% of Vietnam's total CO2 emissions over its first phase, which will last until 2029. It will then be expanded to other sectors, including cargo transportation and commercial buildings. The first batch of emission allowances for 2025-2026 will be allocated to the companies by the end of this year. Firms that exceed their allowances will have to make up the shortfall by buying credits on the market. The scheme will also allow firms to offset as much as 30% of their emissions by buying credits from low-carbon projects at home or overseas. The new ETS is unlikely to have an immediate impact on the emissions of major industries, with most of the allowances expected to be allocated free of charge in the first phase, said Mai Duong, an analyst at Veyt, a carbon market data provider. "The priority is first to help entities adapt to the system, rules and regulations, rather than delivering immediate environmental impacts," she said. Carbon trading is set to become a key part of Vietnam's efforts to meet a target to achieve "net zero" emissions by 2050. Vietnam's emissions have been rising in recent years, mostly as a result of a surge in coal-fired power generation, which soared nearly 18% last year. Crude steel production in 2024 also jumped 15% on the year.
BBC News
02-06-2025
- Business
- BBC News
Shropshire Council warns of new waste tax it 'cannot afford'
A council has warned that a new carbon tax on incinerated waste would be "an additional financial burden" that it "cannot afford".All of Shropshire Council's non-recyclable waste is burned at the Battlefield Energy Recovery Facility (ERF) in Shrewsbury, which generates electricity in the government has said expanding the UK Emissions Trading Scheme (ETS) to include incinerators from 2028 will cut emissions and improve nine-in-ten local authorities have said they will not be able to meet these additional costs within their existing waste and recycling budgets. Last year, BBC research found that burning household rubbish to make electricity was now the dirtiest way the UK generates power. The Local Government Association (LGA), which represents councils in England and Wales, predicts that the ETS could collectively cost councils up to £747m in 2028, rising to £1.1bn in Council owns the Battlefield ERF but it is operated by waste management firm site generates enough electricity to power 10,000 how much cost will be passed on to the council is unclear. But it is likely to be millions of pounds - money the council would struggle to LGA has argued that councils are not commercial operators and cannot refuse waste collections. 'Additional financial burden' Shropshire Council said the authority was assessing the cost of the proposed tax and would work with Violia to develop a strategy to reduce the impact on taxpayers."This is clearly an additional financial burden that Shropshire Council cannot afford," the authority said."The most sensible option would be to compensate councils as part of the finance settlement, though a more cost-effective option would be to not pass the costs on to local government in the first place."The expansion of the carbon tax, which currently applies to aviation and energy intensive industries, has been criticised by the County Councils organisation is calling on the government to focus instead on the industries creating fossil-based materials, such as plastic packaging, textiles, electrical items and furniture. 'Crazy behaviour by government' "Passing the cost on to councils when we're not in a position to control waste disposal to avoid incineration, or we're locked into extremely long contacts, is crazy behaviour by government," said Richard Clewer, a spokesperson for the County Councils Network and former Conservative leader of Wiltshire Council."The cost will literally push councils over the edge to bankruptcy."Almost all top-tier councils dealing with social care are facing very significant cost pressures . . . the government has got to be more thoughtful and joined up than this."The Battlefield ERF, which has been operational since 2015, burns about 100,000 tonnes of waste a year, including all of Shropshire Council's non-recyclables, plus waste from other areas, including Telford and waste has increased the tonnage of residual waste being burned at the Battlefield incinerator after a ban on scraps being put in green bins, rolled out from November when the £56 garden waste charge was all councils must provide a free weekly food waste collection by April next year. The leftover food will end up being turned into biogas rather than being government says it wants to manage waste in a way that works for communities and is fit for the Department for Energy Security and Net Zero said "expanding the UK Emissions Trading Scheme to include energy from waste facilities will cut emissions and drive investment in cleaner supply chains."We continue to engage with industry and local authorities on the detail of this scheme, including how costs will be managed to reflect emissions reductions and recycling efforts, and will provide further updates in due course." Follow BBC Shropshire on BBC Sounds, Facebook, X and Instagram.
