5.4 Funding the AWP

Funding of the necessary investment for new waste-management infrastructure and operations may be obtained in a number of different ways, including private finance, through a PPP or PFI arrangement (refer to Annex 3), or traditional direct funding by the local authority. The Scottish Executive has established the Strategic Waste Fund (SWF) to allow specific grants to be paid to local authorities to assist with additional costs to meet the requirements of the AWP (refer to SWF Guidance available from the Scottish Executive, contact details in Annex 5). Additional funding may also be available in some cases from other sources, e.g. landfill tax credits, New Opportunities Fund ‘Transforming Waste’, EU structural funds and the sale of packaging waste recovery notes (PRNs).

Further information is available on the web site: http://www.sepa.org.uk/nws/funding/index.htm

The Landfill Tax Credit Scheme mechanism is currently under review but it is anticipated that this will also continue to be a potential source of funding for the development of the AWPs and the National Waste Plan.

The development of AWPs will inevitably result in an increase in the cost of wastes management in Scotland. These costs will ultimately have to be borne by the producers of waste. This poses a number of challenges as to how these costs are met and will require further detailed consideration over the next few years.