Response to the Climate Change Committee: progress reducing emissions – report to Parliament 2021

9. Waste

9.1 Complete and publish the planned review into the role of Energy from Waste and incineration in meeting Scotland's ambition to become a zero-waste nation, prioritising efforts to improve resource efficiency.

Timing: Q1 2022

Primary responsibility: Scottish Government

Scottish Government response: accept

The Scottish Government appointed Dr Colin Church to oversee an independent review into the role of incineration in Scotland's waste hierarchy, which will ensure that how we treat residual waste, which cannot be reused or recycled, aligns with our emissions reduction targets.

The report on the review of the role of incineration in Scotland's waste hierarchy was published on 10 May and is available here: Supporting documents - Stop, Sort, Burn, Bury - Independent Review of the Role of Incineration in the Waste Hierarchy in Scotland - gov.scot (www.gov.scot)

As independent chair, Dr Church determined the detailed scope of the review. This includes a consideration of the societal impacts of residual waste treatment, including health and community impacts, as well as an assessment of national capacity requirements. The report makes 12 recommendations on these themes. The scope also includes a consideration of how emissions from existing incinerators can be reduced and residual heat may be reused. The Report, therefore, makes two provisional recommendations on options to decarbonise the existing residual waste treatment infrastructure in Scotland, pending completion of this further research.

9.2 Work with the UK Government to develop a policy and funding framework to retrofit existing Energy from Waste plants with CCS from the mid-2020s, and ensure any new Energy from Waste plants are all built 'CCS-ready'.

Timing: 2022/23

Primary responsibility: Joint with UK Government

There are two parts to this recommendation:

1. Work with the UK Government to develop a policy and funding framework to retrofit existing Energy from Waste plants with CCS from the mid-2020s - partially accept

2. Ensure any new Energy from Waste plants are all built 'CCS-ready' –partially accept

Policy and funding framework for CCS

We would be open to working with UK Government to develop a policy and funding framework to retrofit energy from waste (EfW) plants with CCS. The biggest barrier to CCS is likely to be the costs associated with business model support, and to underwrite transport and storage liabilities, responsibilities and decisions that sit with the UK Government. Currently, the UK Government is the main source of funding for CCS and the majority of this funding is on revenue model support to emitters. BEIS is developing a framework for business model support, which includes consideration of the applicability of the business model support to waste management facilities and officials are keen to support this work.

However, the only route that this business model support will become available is through the CCS cluster sequencing process. Supporting the Scottish Cluster for the deployment of CCS is, therefore, critical to supporting energy from waste plants to support the move towards net-zero by retro-fitting CCS. Supporting the Scottish Cluster would also enhance supply chain growth and economic benefit in Scotland, and underpins any opportunity for negative emissions technologies in Scotland's energy mix. All credible evidence advice and analysis has demonstrated that CCS is critical for meeting statutory emissions targets, and as such it is critical that the UK Government provide greater clarity on CCS following the decision to not to give the Scottish Cluster (led by the Acorn Project at St Fergus) clear and definitive Track 1 status in its CCS cluster sequencing process.

The Scottish Government does not hold all the necessary legislative and regulatory levers needed to stand up a CCS cluster alone, UK Government support including access to BEIS business revenue support, and underwriting of liabilities is essential to providing the certainty and support required to accelerate CCS in Scotland. Given the criticality of CCS the Scottish Government has already engaged with the UK Government to press for greater clarity and to work collaboratively with them to find solutions to accelerate the deployment of CCS in Scotland, and will continue to do so. We have already offered £80 million from our Emerging Energy Technologies Fund and are reviewing what further actions we can undertake within our devolved responsibilities to work with the UK Government towards a mutually beneficial outcome. However, without agreement from the UK Government to support the Scottish CCUS Cluster on an accelerated timetable it is unlikely that any funding would be available to Energy from Waste Plants to retrofit CCS in Scotland by the mid-2020's. Moreover, there is no clarity on whether carbon capture, transport and storage can be operational in the mid-2020s. We therefore cannot agree to the timetable set out in the recommendation.

Ensure any new Energy from Waste plants are all built 'CCS-ready'

Our Update to the Climate Change Plan we committed to consider measures to ensure how waste infrastructure can be 'future-proofed' for carbon capture and storage (CCS). The draft NPF4 contains requirements that mean new energy from waste plants will likely need to consider carbon capture and storage. For example, the draft NPF4 notes that proposals which involve the recovery of energy from waste "should only be supported where the proposal is consistent with climate change mitigation targets and in line with circular economy principles" and "should only be supported …where consideration is given to methods to improve the sustainability of the facility, such as carbon capture and storage". Consultation on the draft NPF4 closed 31 March. We are considering all responses to the consultation, including those from the CCC and will lay a finalised NPF4 for approval by the Scottish Parliament before it is adopted by Ministers. Following its adoption, NPF4 will form part of the statutory development plan, the primary basis for decisions made through Scotland's planning system.

We have commissioned an independent review of the role of incineration in the waste hierarchy in Scotland. As part of this review, the review team have commissioned a longer piece of work to consider the options to decarbonise the energy from waste sector. We expect this work to complete before the end of the year. We have asked the CCC to comment on this piece of work from a policy perspective, once it is complete. Following this piece of work, we will consider the recommendation to ensure waste plants are CCS-ready.

9.3 Bring forward the planned circular economy package for legislating within the forthcoming Programme for Government.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: accept

PfG already commits us to bringing forward a Circular Economy Bill. Consultation planned for May 2022, expect legislative timetable to be announced in next PfG.

9.4 Ensure key policies, such as Extended Producer Responsibility are on track to be in place well before 2025.

Timing: 2022/23

Primary responsibility: Scottish Government

Scottish Government response: accept

This recommendation is vague but in line with our PfG and CCPu commitments we are developing a route map to accelerate progress to meet our 2025 waste reduction and recycling target in a way that maximises carbon savings. The consultation on our route map is due to be published in May 2022, alongside the consultation on a circular economy bill. We are working with the other UK administrations to bring in extended producer responsibility for packaging from 2024.

Our Deposit Return Scheme will be live from August 2023.

9.5 Work with the waste sector and local authorities to set out a route-map detailing the policy and support needed to ensure the 2025 waste prevention and recycling targets (including the 70% recycling target) are delivered, and setting new ambitious targets for 2030.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: accept

This recommendation is in line with our PfG and CCPu commitment to develop a route map to accelerate progress to meet our 2025 waste reduction and recycling target in a way that maximises carbon savings. Work to develop the route map over 2021 included pre-consultation workshops with local government and waste sector to understand the challenges/barriers to progress, identify opportunities, harness expertise and test assumptions.

As part of the development of the route map, due consideration is being given to post-2025 measures, including targets for the period to 2030 and beyond to ensure the waste sector fully plays its part in emissions reduction.

The consultation on our route map is due to be published in May 2022, alongside the consultation on a circular economy bill.

9.6 Confirm that the 2025 ban on biodegradable waste is extended to cover commercial/ industrial waste and implement measures to ensure the ban is delivered primarily through improved waste prevention, resource efficiency and recycling.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: partially accept

This recommendation is in line with commitments in our Update to the Climate Change Plan. We have committed to extend the ban on landfilling biodegradable municipal waste to include biodegradable non-municipal waste, subject to appropriate consultation and work to provide assurance around some specific waste streams. We intend to undertake this work in 2022/23.

9.7 Start reporting emissions from Energy from Waste as a separate source within the Scottish GHG inventory.

Timing: 2022

Primary responsibility: Scottish Government

Scottish Government response: partially accept

We will work with our contractors to explore the potential to break down our GHG inventory reporting to provide a separate Energy from Waste source within our future publications. However, given the time required to develop new methodology it is unlikely that this will be ready in time for our next publication.