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Landfill allowance trading scheme

The Landfill Allowance Trading Scheme (LATS) introduces significant and innovative changes in waste policy and practice for the diversion of biodegradable municipal waste from landfill. It is intended to provide a cost effective way of enabling England to meet its targets for reducing the amount of biodegradable municipal waste sent to landfill under Article 5(2) of the EC Landfill Directive.

The targets set by the 1999 Landfill Directive are to reduce the amount of BMW going to landfill:

  • By 2010 to 75% of that produced in 1995
  • By 2013 to 50% of that produced in 1995
  • By 2020 to 35% of that produced in 1995

Here we bring together all the available information and guidance to assist local authority waste managers in planning for the introduction and operation of the scheme. The page will be updated regularly, as information becomes available.

If you have any questions about the scheme, or the information contained here, please contact the Landfill Policy Team at landfill.policy@defra.gsi.gov.uk.

News and announcements

June 2009 - Text for communication on new communication on new consultations on Definition of Municipal Waste and the future of the duty on 2-tier local authorities to produce joint municipal waste management strategies. (PDF 17KB)

November 2008 – The Environment Agency report on the Landfill Allowances and Trading Scheme 2007/08 has been published.

The Environment Agency published their annual report on the third year of the Landfill Allowances and Trading Scheme (LATS) on the 12 November.

2007/08 results for England show a continuing downward trend in the amount of BMW sent to landfill. Local authorities had a target to landfill no more than 13.6 million tonnes of Biodegradable Municipal Waste (BMW), in fact England landfilled only 10,581,953 tonnes (10.6M tonnes) of biodegradable municipal waste (BMW) in 2007/08.

This is 8.4 per cent less than in 2006/07. The amount of BMW landfilled in 2007/08 is also 22.4 per cent less than the allowances issued in 2004.

All 121 waste disposal (81) and unitary (40) authorities held sufficient allowances for the amount of BMW they landfilled in 2007/08. No authorities were liable for penalties. Authorities continue to use the flexibilities of the trading scheme and met their allowance allocations by diverting BMW from landfill and by banking, borrowing and trading allowances.

November 2008 – The Landfill Allowance Trading Scheme (LATS) Operational Review and Action Plan has been published.

April 2008 - The Government response (PDF 20 KB) to the consultation on the interpretation of the definition of municipal waste used in LATS has been published.

Government response to the consultation on the interpretation of the definition of municipal waste used in LATS in England

The Government issued a consultation on the interpretation of the definition of municipal waste used in LATS in England in mid 2007.  As a trading scheme operating over a period of several years the success of the scheme relies on long term certainty and clarity.  Local authorities must have confidence about the scope and operation of the scheme if they are to be able to plan for the longer term and make effective use of it.

It was clear that there was still a level of uncertainty about the interpretation of the definition of municipal waste used in the scheme.  Some local authorities were concerned by the apparent difference between the practical definition used in the Government’s guidance and the legal definition set down in the Waste and Emissions Trading Act 2003.  Government therefore set out and consulted on proposals to amend the definition of municipal waste in the Waste and Emissions Trading Act 2003 to resolve the apparent tension with the Government’s interpretation.

The overwhelming majority of responses to the consultation agreed that there is a need to clarify the interpretation of municipal waste used in LATS. Further details can be found in the full Government response (PDF 20 KB) to the consultation.

In light of the response Government planned to take forward changes during the 2008/09 financial year. However, work is still ongoing to finalise the changes and further work is needed to resolve outstanding issues before the legislative change can be made.  We will provide further clarity about the timetable for change as soon as this is possible.

Page last modified: 9 June 2009
Page published: 5 February 2003