Subsidy: Difference between revisions

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[[Category: Economics]]

A subsidy is money that is paid by a government or other authority in order to help an industry or business, or to pay for a public service <ref>Collins, 2019. [https://www.collinsdictionary.com/dictionary/english/subsidy?showCookiePolicy=true Subsidy definition and meaning | Collins English Dictionary. Collinsdictionary.com.] [online] [Accessed 18 Nov. 2019].</ref>.

The primary subsidies that have been available in the waste-related market have centered on the generation of renewable electricity, heat and road fuels (notwithstanding the subsidy that was available to those local authorities as part of a [[PFI|Public Finance Initiative]] (PFI) that they may have entered into with the private sector).

The subsidies relating to renewable electricity started with the [[NFFO|Non Fossil Fuel Obligation]] (NFFO) regime (which had a strong bias towards [[Landfill Gas]] power generation), it was replaced by the [[ROC|Renewable Obligation Scheme]] (ROC) regime (which had more of a bias towards new [[ACT]] and [[AD]] technologies) and which is still being paid on some projects today. In the case of [[AD]] this was also supported by the [[FIT|Feed in Tarriff]] (FIT) regime, which was designed for smaller projects that in many cases better aligned with [[AD]] than the [[ROC]] regime, which ran in parallel for larger schemes. The most recent subsidy to replace the [[ROC]] regime is the [[CFD|Contracts for Difference]] (CfD) regime (which was biased towards other forms of renewable power, but has supported some [[ACT]] projects generating electrical power).

The subsidies relating to renewable heat have been focused on the [[RHI|Renewable Heat Initiative]] (RHI) regime, encouraging [[CHP|Combined Heat and Power]] (CHP) schemes but also having an impact on direct injection of [[Methane]] into the gas grid to replace natural gas. The methane has often been generated from [[Landfill Gas]] and [[AD]] projects.

The final set of subsidies that relate to the market are based indirectly around the [[RTFO|Renewable Transport Fuels Obligation]] (RFTO) regime, where renewable transport fuels have been encouraged and this is driving a focus on technologies that generate methane and hydrogen for use in vehicles. Future support around aviation fuel and carbon negative technologies are also potentials for the market.

Whilst the [[PRN|Packaging Recovery Note ]] (PRN) regime is intended to encourage recycling of specific materials, the mechanism works more as a tool to encourage investment by increasing the cost to waste producers and the market, rather than a subsidy per se, but arguably those that undertake the recycling and generate the [[PRN]] itself benefit from a payment that supports/encourages their activity.

==References==

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 [[Category: Economics]]
 A subsidy is money that is paid by a government or other authority in order to help an industry or business, or to pay for a public service <ref>Collins, 2019. [https://www.collinsdictionary.com/dictionary/english/subsidy?showCookiePolicy=true Subsidy definition and meaning | Collins English Dictionary. Collinsdictionary.com.] [online] [Accessed 18 Nov. 2019].</ref>.
+The primary subsidies that have been available in the waste-related market have centered on the generation of renewable electricity, heat and road fuels (notwithstanding the subsidy that was available to those local authorities as part of a [[PFI|Public Finance Initiative]] (PFI) that they may have entered into with the private sector).
+The subsidies relating to renewable electricity started with the [[NFFO|Non Fossil Fuel Obligation]] (NFFO) regime (which had a strong bias towards [[Landfill Gas]] power generation), it was replaced by the [[ROC|Renewable Obligation Scheme]] (ROC) regime (which had more of a bias towards new [[ACT]] and [[AD]] technologies) and which is still being paid on some projects today. In the case of [[AD]] this was also supported by the [[FIT|Feed in Tarriff]] (FIT) regime, which was designed for smaller projects that in many cases better aligned with [[AD]] than the [[ROC]] regime, which ran in parallel for larger schemes. The most recent subsidy to replace the [[ROC]] regime is the [[CFD|Contracts for Difference]] (CfD) regime (which was biased towards other forms of renewable power, but has supported some [[ACT]] projects generating electrical power).
+The subsidies relating to renewable heat have been focused on the [[RHI|Renewable Heat Initiative]] (RHI) regime, encouraging [[CHP|Combined Heat and Power]] (CHP) schemes but also having an impact on direct injection of [[Methane]] into the gas grid to replace natural gas. The methane has often been generated from [[Landfill Gas]] and [[AD]] projects.
+The final set of subsidies that relate to the market are based indirectly around the [[RTFO|Renewable Transport Fuels Obligation]] (RFTO) regime, where renewable transport fuels have been encouraged and this is driving a focus on technologies that generate methane and  hydrogen for use in vehicles. Future support around aviation fuel and carbon negative technologies are also potentials for the market.
+Whilst the [[PRN|Packaging Recovery Note ]] (PRN) regime is intended to encourage recycling of specific materials, the mechanism works more as a tool to encourage investment by increasing the cost to waste producers and the market, rather than a subsidy per se, but arguably those that undertake the recycling and generate the [[PRN]] itself benefit from a payment that supports/encourages their activity.
 ==References==
 <references />