Ed Miliband, the Energy Security and Net Zero secretary, has backed biomethane as a "practical and cost-effective" means to achieve net zero but has given no commitment to sorting out the anomaly in the UK's Emissions Trading Scheme which treats biogas like fossil gas.

Miliband's views came in a response to the open letter from ADBA, the Anaerobic Digestion and Bioresources Association, signed by more than 100 organisations from the biogas community.

Chris Huhne, the chair of the Anaerobic Digestion and Bioresources Association (ADBA), said he was "mystified" about how a government committed to unblocking economic growth could take so much time to rectify the problem.

"This issue is holding up literally billions in investment in a sector that can deliver good jobs in the poorest parts of the country. I am mystified about how long it is taking DESNZ to sort an issue which they have already admitted is just plain wrong" said Huhne.

ADBA has now received this response from Mr Miliband:

"The Government is clear that biomethane is a practical and cost-effective way of contributing to net zero greenhouse gas emissions and delivering energy security. We understand that how the ETS treats biomethane is an important issue for operators and the biomethane sector, and this was considered in our 2024 call for evidence on a future framework for biomethane production.

We understand that providing policy certainty is important in enabling investment and supporting sector-wide growth. That is why my Department is developing proposals for a consultation on a future biomethane policy framework, which is expected to be published by the end of the 2025/26 financial year. This will take into account responses to the earlier biomethane policy call for evidence, published in February 2024, and set out proposals for supporting the growth of the sector.

My officials are currently working with the UK ETS Authority to understand whether and how the UK ETS could account for biomethane injected into the gas grid. The ETS Authority has not yet made a decision on whether or when this reform will be made."

Mr Milliband then invites ADBA to get in contact with his officials to discuss further.

Charlotte Morton OBE, Chief Executive of the Anaerobic Digestion and Bioresources Association, commented:  

"We welcome the Secretary of State's response and the government's clear interest in supporting the UK anaerobic digestion industry. To unlock investment, however, government must urgently confirm a timetable for including biomethane in the UK Emissions Trading Scheme – in line with or ahead of the EU – so UK companies are not disadvantaged. By spring 2026, it also needs to be confirmed that carbon captured from anaerobic digestion (AD) plants can be transported in ways other than via pipelines, to enable timely investment in what is far and away the cheapest form of carbon capture and storage."