The Landfill Allowance Trading Scheme was set up earlier this month to allow councils to buy or sell landfill allowance from each other, borrow from future years' allowances or bank surplus allowances.
Kent County Council waste operations director Peter Horn said that this year his authority would borrow allowances from future years to offset the 6,000t of waste over its annual target to be landfilled.
By 2006 it hopes to have a waste to energy plant online to process 300,000t of waste annually.
Only Cambridgeshire County Council has come forward saying it will have landfill allowances to sell.
Council waste policy manager Mark Shelton told NCE this week that he expects to pocket up to £1M every year for the next four years by selling spare allowances.
It was initially planned to sell allowances at £32/t - the real cost of handling the waste. But the price has gone up 'considerably' since more than one council became interested in buying the allowance, he said.