Dump price rise of more than 11.5% proposed

Charges at Dunedin's rubbish dumps are set to rise more than 11.5% as the Dunedin City Council recovers spiralling emission trading scheme (ETS) costs.

In two years the council will have to double the number of carbon credits it needs to buy as a landfill operator to offset methane emissions.

That comes as the cost of the credits has risen from $7 in 2015 to $13.40 last year, and $18.50 recently.

The council will consider two reports on the issue on Monday, one on the council's response, and the second on its effect on solid waste prices.

The ETS was established in 2008 as New Zealand's greenhouse gas emissions trading scheme.

It puts a price on greenhouse gas emissions, providing an incentive for people to reduce emissions and plant forests to absorb carbon dioxide.

Certain sectors acquire and surrender credits to account for their greenhouse gas emissions, or emissions associated with their products.

In May last year the council called on staff to explore options to reduce its liability.

A report to the council in response said, since 2009, ETS participants had only had to surrender one credit for every two tonnes of emissions, instead of two credits, a ''transitional measure'' in place since 2009.

The obligation to surrender just 50% of the set number of credits increased to 67% this month, would increase to 83% next January, and 100% in 2009.

The report said a first option was to recover ETS costs through increased user charges, encouraging waste minimisation by landfill users.

Landfill prices rose last year for the same reason.

Other options identified in the report included reducing the quantity of landfill emissions, plans for which were already implemented or under consideration and development, and ''prudent purchasing and surrendering'' of the credits.

A report on the council's solid waste budget said the cost of the ETS increases to the department was $1.2 million.

Solid waste manager Catherine Irvine told the Otago Daily Times staff proposed charges for mixed loads and for disposing waste to the landfill would ''generally increase'' to offset costs imposed by the Government under the ETS.

Staff had also proposed a slight decrease to the charge for a car dropping off a load of vegetation.

''This is because we can compost vegetation on-site instead of it being disposed in the landfill.''

The cost for a small car load of vegetation had dropped from $10 to $9.

Ms Irvine noted the price changes would be discussed by councillors, then go to public consultation before a final decision.

The report said the proposed fee increase was 3% for most waste, and a further 8.5% for waste where ETS applied.

It could not be confirmed last night, but it appeared all the fees had been rounded up, meaning the rise was more than 11.5%.

david.loughrey@odt.co.nz