Prime Minister Andy Burnham has scrapped two of Sir Keir Starmer's key green taxes in a blow to former energy secretary Ed Miliband. Labour plans to introduce eco charges on domestic ports and waste incinerator sites have been abandoned in favour of tackling the cost-of-living crisis, reports suggest.
ETS expansion shelved
Sir Keir's Government had planned to extend the UK's Emissions Trading Scheme (ETS), under which companies pay for the amount of carbon they use when it exceeds a capped level. Critics warned that the move could see businesses pass costs on to customers, ultimately leaving the average Brit worse off.
Mr Burnham's decision follows his reallocation of Mr Miliband to the foreign secretary brief, after his net zero agenda during his stint overseeing national energy policy proved divisive.
Official confirmation
Officials from the Department for Energy Security and Net Zero (DESNZ) told The Telegraph: "We can confirm that expansion of the UK ETS to waste incineration will not take place in 2028 as originally intended. A new timeline will be set out in due course, along with full details on final policy design, with sufficient time for the waste sector to implement."
The Department for Transport separately confirmed that plans to levy carbon charges on ports under the ETS scheme had also been shelved.
Shipping levy replacement
The Government had been warned that the move risked incentivising cruise and ferry firms to choose cheaper European ports over British ones. It has since been quietly replaced by a carbon tax on shipping firms, mirroring levies already in place around the world.
Mr Burnham has previously signalled a willingness to retreat from net zero goals, including his stance on North Sea oil and gas and the potential watering down of targets for the take-up of electric vehicles.
