Did you know that municipal waste incineration is currently exempt from the European Emissions Trading System (EU ETS)? However, if incineration plants are included in the system in 2028, this could bring significant climate and employee benefits. New study from CE Delft investigated the impacts of this step.

New rules, new motivations

The EU ETS is a market-based mechanism for reducing CO2 emissions that incentivises companies to reduce greenhouse gases in a cost-effective way. Including incineration plants in the EU ETS will mean that waste companies will have to buy emission allowances for every tonne of CO2 they emit. These additional costs of incineration can act as motivation for waste prevention and recycling, which will thus become more competitive and less costly than incineration. It is also important to avoid the transfer of waste to landfills, which is already limited by the Landfill Directive. The study considered two scenarios: including fossil emissions (FC) and including both fossil and biogenic emissions (FBC).

Climate benefits for Europe

Including waste incineration in the EU ETS would lead to emissions reductions of 4 to 7 million tonnes in 2030 and 18 to 32 million tonnes in 2040 under the EU ETS. This reduction is considered to be minimal as it does not include emission reductions outside the direct scope of the EU ETS. Savings can result from:

• Pre-harvest sorting (households and companies).
• Sorting of residual mixed waste in specialized facilities.
• Recycling and waste prevention.
• Carbon capture and storage (CCS) measures.
• Emission reductions in other EU ETS sectors, as waste companies will buy emission rights, thereby incentivising greenhouse gas reductions elsewhere. Recycling also reduces emissions throughout the product life cycle, for example by reducing imports of virgin plastics and associated emissions from outside the EU.

More jobs and cleaner air

In addition to climate benefits, including incineration plants in the EU ETS also brings employee benefitsRecycling activities are more labor-intensive than waste incineration. The study estimates that it will create 8,700 to 16,400 additional jobs in 2030 and 11,600 to 21,700 in 2040For example, for every 1,000 tonnes of waste recycled, 2 FTEs (full-time equivalents) are created, while incineration results in the loss of 0.1 FTEs. It will also improve air quality for citizensIncreased recycling reduces harmful emissions (e.g. dioxins and furans) by diverting materials from combustion. It also reduces the formation of bottom ash, which can pose a threat to the environment and health if improperly managed.

How to maximize impact and mitigate costs? Although inclusion in the EU ETS will increase waste disposal costs for households and businesses, these costs can be mitigated by recycling revenues from the sale of emission allowances by the government. Additional policies are recommended to strengthen the impact, such as mandatory recycled content for plastics, the introduction of more variable waste fees (PAYT) for citizens, or cheaper containers for separate collection.

The integration of waste incineration plants into the EU ETS represents a key step towards a more sustainable future in Europe. It promises significant reduction of greenhouse gas emissions, support for the circular economy and creation of thousands of new jobsIt's a clear path to a cleaner environment and a stronger economy. Spring

Glossary of key terms

• EU ETS (European Emissions Trading System): A market-based mechanism for reducing CO2 emissions that provides incentives for companies to reduce greenhouse gas emissions in a cost-effective manner.
• Waste incineration: The process of burning waste materials to reduce their volume and sometimes to produce energy.
• Climate benefits: Positive climate impacts, such as reduced greenhouse gas emissions, resulting from certain activities or policies.
• Waste prevention: Measures taken to reduce the amount of waste generated through changes in product design, consumption patterns or reuse.
• Recycling: The process of converting waste materials into new products with the aim of preventing waste, reducing the consumption of fresh raw materials and reducing emissions.
• Emission credits: Tradable permits, which allow the holder to emit one tonne of CO2 equivalent, which companies must purchase under the ETS.
• Scenario FC (fossil CO2): A scenario in the study that considers including CO2 emissions from fossil sources only.
• FBC scenario (fossil and biogenic CO2): A scenario in the study that considers the inclusion of CO2 emissions from both fossil and biogenic origins.
• Landfill Directive: EU legislation that seeks to reduce the adverse impacts of landfilling waste on the environment and human health.
• Price elasticities: The extent to which demand for a good or service responds to a change in its price. In the context of the study, this measures how changes in incineration costs affect recycling and waste prevention rates.
• Pre-collection sorting: Sorting waste by households or businesses before collection (e.g. sorting plastics, paper, etc. into separate containers).
• Residual mixed waste sorting: The process of separating recyclable materials from residual (unsorted) waste after its collection through specialized facilities.
• Carbon Capture and Storage (CCS): Technologies and methods used to capture CO2 from large sources, such as power plants, and store it so it doesn't enter the atmosphere.
• Pay-as-you-throw (PAYT): A system in which households are charged for waste disposal based on the amount they produce, usually by weight or volume.
• Extended Producer Responsibility (EPR): A policy approach in which producers are responsible for the entire life cycle of the products they place on the market, including collection, recycling and post-consumer disposal.
• Bottom ash: The solid residue that remains after burning waste.
• PAHs (polycyclic aromatic hydrocarbons): Toxic compounds formed during the incomplete combustion of organic materials.
• PCDD/PCDFs (dioxins and furans): Highly toxic, persistent organic pollutants that are produced during waste incineration.
• CO2-eq (CO2 equivalent): A measure that expresses the impact of various greenhouse gases on global warming as an equivalent amount of CO2 with the same impact.