Irish waste review sparks row over incineration tax
Environment minister reveals cost of levy but plans are accused of flying the face of EU strategy
25 Nov 2009
A REVIEW of Ireland’s waste management policy that proposes an increase in landfill tax and the introduction of an incineration levy has been criticised by the Confederation of European Waste-to-Energy Plants (CEWEP) for being “anything but international, flawed, anti-competitive and out–of-sync with best practise”.
Launched by John Gormley, minister for the environment, heritage and local government, the report - published by Eunomia Research & Consulting - suggested that landfill tax should be increased to €30 per tonne by 2010, to €50 in 2011 and to €75 in 2012. Minister Gormley warned that an incineration levy could be in the range of €20 to €38 per tonne.
The minister said: “The Eunomia report represents a launch pad for transforming how we deal with waste in Ireland. We now have the considered research which is the essential foundation for good and robust policy.
“We have the blueprint for legislative, institutional, regulatory and organisational change to achieve a wholly sustainable approach to waste management.”
The report has provoked a strong reaction from CEWEP who warned that householders could foot the bill for the proposed changes and even pay 30% more through “bin charges”.
Jackie Keaney, vice president at CEWEP, said: “After many years of debate, Ireland had finally started to adopt a mature approach to managing its waste, an approach that adhered to the respected and recognised EU waste hierarchy model. This Review, if implemented in full, will drag us backwards. Its recommendations are ‘Alice in Wonderland’ stuff. It is out-of- sync with international best practice, anti-competitive and as a result, flawed.
“From a legal perspective, the Review took no account of national and EU competition law. This is particularly relevant given the competitive impact many of the Review’s recommendations would have. Finally, no cost benefit analysis was undertaken as part of the Review which further undermines its credibility.”
Despite the threat of an incineration tax, work is set to start on the 600,000 tonnes per year waste to energy plant on the Poolbeg peninsula in Dublin. The project is being run between Dublin City Council on behalf of four local authorities and Dublin Waste to Energy – a joint venture between Covanta Energy USA and DONG Energy Generation Denmark. Enough electricity is expected to be generated to power up to 50,000 homes annually.
A spokesperson for the project told RWW that: “A tax on waste going to incinerators will be a burden on local authorities as opposed to operators of the plant.”
Speaking to RWW, PJ Rudden, director of consultancy RPS, said: “Dublin already has a waste management plan that has recycling as its cornerstone, like the other European cities that have the highest rates of recycling and the lowest amount of waste going to landfill. Environmental taxes need to encourage waste up not down the waste hierarchy.
“To incentivise MBT and positively discourage waste to energy is a retrograde step that flies in the face of EU policy and best international experience. It amounts at worst to a ‘landfill strategy’ due to low grade outputs and at best where capacity exists will lead to co-incineration which is still waste to energy, but at a higher cost.”
Last year saw Indaver Ireland start construction on its £130 million facility in Co Meath, expected to be operational by the start of 2011 and which will generate enough electricity to meet the needs of 20,000 homes. The firm is also progressing with plans to build a WtE plant in Ringaskiddy, Cork. Up to 22MW is anticipated to be generated from the development that will power 30,000 homes.
Keaney added: “This Review is only that – a review. For it to take effect, it requires government approval. Therefore people and businesses should not be alarmed that they are about to face a 30% hike in bin charges – a prospect that would become reality if this Review was implemented.”
CEWEP’s vice president went on to say: “Ireland faces enough problems right now without recreating new ones. We have finally started to see the right blend of re-use, recycling and recovery. The current approach is also keeping waste costs down and creating jobs. To throw away all the progress made based on flawed advice would be a regressive step.”
The report is part of a commitment in the Programme for Government, which was agreed in 2007 and included waste management objectives, such as carrying out an international review of waste management plans, practises and procedures. A new policy statement is expected to be presented to the government shortly, with the aim for it to be published in the New Year.
Other industry experts believe that such a tax could be replicated across the Irish sea in the UK.
Michael Warhurst, senior campaigner at Friends of the Earth, told RWW: “Friends of the Earth welcomes this proposal for an incineration tax. Incineration has been getting a free ride on tax for too long, given its poor performance on climate and resource efficiency. We expect that a similar tax will arrive in the UK soon and councils should be aware that incineration is likely to get even more expensive.”