Three South Yorkshire councils have warned that new government legislation could add up to £14 million in extra costs for managing waste.

The Barnsley, Doncaster, and Rotherham Waste Partnership, which manages the 340,000 tonnes of waste produced by the three boroughs each year on behalf of the local authorities, has warned that changes to environmental regulations could result in significant financial pressures.

The new legislation, set to begin in 2028, will require waste plants to pay for their carbon emissions under the UK’s Emissions Trading Scheme (ETS).

The ETS sets a limit on carbon emissions and allocates allowances that businesses and organisations can trade, creating a financial incentive to cut emissions. The scheme aims to reduce pollution across aviation, power, and industry while stimulating investment in clean technologies.

The BDR partnership is concerned this change in law means they could face higher costs for handling waste.

Currently, the cost of emissions allowances is about £37 per tonne of waste. But experts predict this could rise to £100 or even £150 per tonne by 2028. If these costs are passed down to the BDR Waste Partnership, it could mean an extra £9.4 million to £14 million in charges.

If these costs are passed on to the councils, it could impact local budgets and lead to higher council tax bills for residents. The BDR team is also concerned that this could cause service disruptions as the councils may need to renegotiate contracts or even take over the running of the waste facilities.

A report states that the BDR team is currently exploring ways to reduce the impact of the new rules, such as cutting down on carbon emissions and reducing waste sent to the plant. However, with the new rules set to take effect in 2028, it’s unclear how much this will help.

Councils are now working closely with experts and government bodies to understand the full impact and figure out how to manage the costs.