Trade body says biomethane must be added to UK emissions trading

Trade group the Anaerobic Digestion andBioresources Association (ADBA) has called for the UK government to “urgently”confirm a timetable for including biomethane in the UK Emissions Trading Schemein order to unlock investment.

So far the government has given nocommitment to sorting out the anomaly in the UK’s Emissions Trading Scheme,which today treats biogas like fossil gas.

It follows Ed Miliband, the Energy Securityand Net Zero secretary, backing biomethane as a “practical and cost-effective”means to achieve Net Zero – itself a response to an open letter from ADBAsigned by more than 100 biogas organisations.

ADBA Chair Chris Huhne said he was“mystified” that the   government was being so slow to address thesituation.

“This issue is holding up literallybillions in investment in a sector that can deliver good jobs in the poorestparts of the country. I am mystified about how long it is taking [governmentdepartment] DESNZ to sort an issue which they have already admitted is justplain wrong,” he said.

Miliband said recently he understoodproviding policy certainty is important in enabling investment and supportingsector-wide growth.

“That is why my department is developingproposals for a consultation on a future biomethane policy framework, which isexpected to be published by the end of the 2025/26 financial year,” he added.

“This will take into account responses tothe earlier biomethane policy call for evidence, published in February 2024,and set out proposals for supporting the growth of the sector.

“My officials are currently working withthe UK ETS Authority to understand whether and how the UK ETS could account forbiomethane injected into the gas grid. The ETS Authority has not yet made adecision on whether or when this reform will be made.”

Charlotte Morton OBE, Chief Executive ofADBA, welcomed the response and the government’s clear interest in supportingthe UK anaerobic digestion industry.

“To unlock investment, however, governmentmust urgently confirm a timetable … so UK companies are not disadvantaged,” shesaid.

“By spring 2026, it also needs to beconfirmed that carbon captured from anaerobic digestion plants can betransported in ways other than via pipelines, to enable timely investment inwhat is far and away the cheapest form of carbon capture and storage.”