Despite the existing EU waste acquis, significant quantities of municipal waste continue to be disposed of through landfill or incineration. According to the report, several policy approaches currently under discussion risk diverting residual waste between treatment options without reducing the overall volume remaining after prevention, reuse and recycling measures.
The analysis indicates that, excluding major mineral and combustion wastes, a substantial share of residual waste in the European Union originates from municipal-type streams, including household waste and sorting residues. These waste streams are closely linked to consumption patterns and to the performance of separate collection, reuse and recycling systems. As such, they represent a central element in efforts to reduce overall residual waste generation.
The proposed scheme would establish an EU-wide cap on residual municipal waste on a per-capita basis, covering both landfill and incineration. By applying a single quantitative limit across disposal routes, the mechanism is intended to prevent shifts between treatment options and to focus on reducing residual waste generation at source. Tradable allowances would enable Member States to meet reduction obligations in a cost-efficient manner while ensuring compliance with the overall EU ceiling.
The report positions the proposed trading system as complementary to the European Union Emissions Trading System. It argues that aligning waste policy instruments with climate policy could support waste prevention and circular economy objectives while limiting potential distortions between incineration and landfill.
According to the authors, an EU-wide cap-and-trade system for residual municipal waste could strengthen Member States’ ability to meet existing targets, including the 65 percent recycling target and the 10 percent landfill limit for municipal waste. With the Circular Economy Act currently under preparation, the report highlights the legislative timetable as a relevant factor for considering additional regulatory instruments in the field of EU waste management.
