What the UK Emissions Trading Scheme Means for the Flooring Sector

By the UK Sustainable Flooring Alliance (UKSFA)

The UK Emissions Trading Scheme (UK ETS) is a market-based system designed to cut greenhouse gas emissions in line with the UK’s legally binding target to reach net zero by 2050.

Under the ETS, the UK Government sets a cap on total emissions allowed each year. Businesses  covered by the scheme must hold a tradable allowance for every tonne of CO₂ they emit, a system known as ‘cap and trade.’ The cap is reduced annually, meaning the cost of emissions rises over time.

Launched in 2021, the UK ETS currently applies to energy-intensive industries, the power sector, and aviation. But from 2028, it will expand to include waste incineration and energy-from-waste (EfW) facilities – a major challenge for the flooring sector.

Why 2028 is a turning point

Each year in the UK, more than 200,000 tonnes of carpet and textile flooring waste are sent to Energy from Waste (EfW) plants. Adding resilient flooring waste will likely push this total up by around 50,000 tonnes.

Once EfW falls under the ETS, operators will be required to monitor, report, and verify their carbon emissions. They will also have to buy and surrender allowances for every tonne of fossil-based CO₂ released during incineration.

Put simply, the more fossil-derived materials incinerated – such as flooring products – the higher the cost of disposal.

The cost impact

Disposal costs are set to rise sharply. Estimates suggest an extra £49 per tonne (at today’s prices) will be added to existing EfW gate fees of around £110 per tonne, before transport. By 2028, this could mean a minimum of £200 per tonne to dispose of most types of flooring waste.

Local authorities are already preparing. At a household recycling conference last year hosted by CLAIRE Group in Wales, UKSFA highlighted the need to reduce synthetic, fossil-based waste entering sites to avoid unsustainable costs. In Wales, councils could also face fines for missing national carbon reduction targets.

From a commercial perspective, the ETS will also feed directly into Life Cycle Assessments (LCAs) and Environmental Product Declarations (EPDs), as both measure carbon impacts at a product’s end of life. This could affect environmental scoring for flooring products sold in the UK and beyond.

How the flooring sector should respond

The industry has both a duty of care and a commercial interest in reducing its reliance on fossil based materials and improving waste management. Treating waste as a resource rather than just a cost can open up new opportunities for efficiency, innovation, and compliance.

Key steps to take now include:

• Regular waste audits – Understand what materials you’re discarding, in what volumes, and from which sources. This can reveal opportunities for prevention, reuse, and recycling.
• On-site segregation – Where space allows, separate materials such as carpet, underlay, vinyl, LVT, and wood-based products to make recovery easier and more cost-effective.
• Use take-back schemes – Many manufacturers now offer schemes for their products, and some accept other brands too. These are particularly effective for packaging and clean off cuts.
• Partner with reuse and recycling specialists – Segregated materials, especially by fibre type (polypropylene, nylon, wool), are increasingly in demand. See UKSFA’s directory: www.uk-sfa.com/reuse-and-recycle
• Think circular – Choose recyclable materials, modular systems, and alternatives to traditional backings and adhesives. Products designed for disassembly and recovery will help reduce disposal costs under ETS.

Collaboration is key

The impact of ETS will be felt by all who have zero-waste-to-landfill contracts with the waste management sector. This includes manufacturers, distributors, contractors and retailers, as well as others at the end of the supply chain. There is a strong case for businesses to take a proactive role in minimising financial pressures while advancing sustainability. At the same time, UKSFA is actively exploring alternatives to landfill and incineration, working collaboratively with members, the waste sector and researchers to find practical solutions.

By acting now, the flooring sector can reduce costs, minimise environmental impact, and futureproof against rising carbon-related charges.

www.uksustainableflooringalliance.com