Landfill Allowance Trading Scheme

Economics

The Landfill Allowance Trading Scheme (LATS) was introduced by DEFRA on 1st April 2005 as a way to enable the UK the meet the Landfill Directive targets of reducing the amount of Biodegradable Municipal Waste being sent to landfill in a cost-effective way.

The LATS set annual tradeable landfill allocations for Waste Disposal Authorities which had to be met otherwise the penalty was £150 for each tonne of waste the Waste Disposal Authorities landfilled above their allowance.

The Landfill Allowance Trading Scheme (LATS) was introduced by DEFRA on 1st April 2005 as a way to enable the UK the meet the Landfill Directive targets of reducing the amount of Biodegradable Municipal Waste being sent to landfill in a cost-effective way.

The LATS set annual tradeable landfill allocations for Waste Disposal Authorities which had to be met otherwise the penalty was £150 for each tonne of waste the Waste Disposal Authorities landfilled above their allowance.

By making the allowances tradeable, high performing authorities and those with Energy from Waste facilities were able to sell unused permits to other Waste Disposal Authorities that required them. Allowances could also be ‘banked’ for use at a later date <ref>The Landfill Allowance Trading Scheme and Commercial Waste, Paul Gareth Jones, 2006 https://www.uea.ac.uk/documents/541248/10788799/Jones+Gareth.pdf/e043e3ac-3bbd-4163-a978-8e3091fa7ecd/ref>.