The Waste and Emissions Trading Act has been granted Royal Assent. The aim of the new Act is to enable the UK to face two of the biggest environmental challenges - climate change and the need to move towards a more sustainable management of our waste.

The UK already has the world's first economy wide greenhouse gas emissions trading scheme and the Act puts on a statutory footing penalties for direct participants in the UK Greenhouse Gas Emissions Trading Scheme who fail to comply with their emissions reduction targets. It will also enable the provision of penalties for future emissions schemes ensuring that the markets for these schemes work effectively.

The Act also introduces what is thought to be the world's first waste first trading scheme, and will help to achieve the UK targets under Article 5(2) of the EU Landfill Directive for reducing the amount of biodegradable municipal waste sent to landfill. In England the scheme is designed to give local authorities as much flexibility as possible, whilst still ensuring that the Landfill Directive targets are met. Landfill allowances will be allocated to each waste disposal authority at a level that will enable England to meet its targets, as a contribution to the UK targets, under the Landfill Directive.

Waste disposal authorities will be able to trade their allowances with other disposal authorities, and to find the most cost effective way of diverting waste from landfill to reflect their local circumstances. Waste disposal authorities will also be able to save unused allowances (bank) or bring forward part of their future allocation (borrow).

The Act also contains two new measures to promote joint working in two-tier areas to help in meeting their obligations under the Landfill Allowance Scheme. A requirement for some authorities in two-tier areas to have in place by April 2005 a joint strategy for the management of municipal waste and a power for waste disposal authorities to direct a collection authority to deliver their waste in a separated form. Defra plans to consult on the draft regulations and guidance on these measures in the New Year.

These measures reflect the fact that the two-tier structure and the division of responsibilities between the waste disposal and collection authorities can make integrated waste management more difficult, which in turn may pose particular challenges to waste disposal authorities in meeting their obligations under the Landfill Allowance Trading Scheme.

This Consultation Paper invites views on detailed proposals for the Landfill Allowance Trading Scheme. Draft scheme regulations have now been published - see links below, comments on these are also welcome.

The folowing documents are available from Defra's website at the following addresses:

Consultation letter
http://www.defra.gov.uk/corporate/consult/landfill/letter.htm

List of consultees
http://www.defra.gov.uk/corporate/consult/landfill/consultees.htm

Summary of the consultation
http://www.defra.gov.uk/corporate/consult/landfill/summary.htm

Frequently asked questions
http://www.defra.gov.uk/corporate/consult/landfill/faqs.htm

News release 29 August 2003
http://www.defra.gov.uk/news/2003/030829b.htm

Consultation document (200 KB)
http://www.defra.gov.uk/corporate/consult/landfill/consultation-doc.pdf

(Partial) Regulatory Impact Statement (160 KB)
http://www.defra.gov.uk/corporate/consult/landfill/assessment-doc.pdf

Draft Regulations (Accompanying Note) (22 KB)
http://www.defra.gov.uk/corporate/consult/landfill/draft-regulations.pdf

The Landfill Allowances & Trading Scheme (England) Regulations 2003 (Draft) (9 KB)
http://www.defra.gov.uk/corporate/consult/landfill/si03.pdf

The Landfill Allowances Scheme (Scheme Years and Landfill Targets) Regulations 2004 (Draft) (50 KB)
http://www.defra.gov.u