Released by two key European bodies in the WtE sector
The Confederation of European Waste-to-Energy Plants (CEWEP) and The European Suppliers of the Waste to Energy Technology (ESWET) have released a policy document stating that they fully support the reduction of greenhouse gasses in the waste sector but that this will not be achieved by integrating Waste-to-Energy (WtE) into the EU Emissions Trading System in its current form, since this would create unintended environmental and economic consequences without delivering the expected climate gains
To ensure a climate neutral waste system the paper argues for the following adjustments within a new framework, stating these would be necessary to enable a successful transition to climate neutrality.
1. Carbon pricing in waste management needs to run alongside measures to ensure realisation of the EU waste goals and the Circular Economy Act with a focus on landfill reduction
Despite several efforts to reduce landfilling over the past decades, landfill rates in many EU member states remain persistently high, resulting in significant and problematic methane emissions.
Diverting recoverable waste from landfills to higher levels of the waste hierarchy, such as recycling and WtE, will substantially reduce methane emissions, save primary raw materials and deliver greater CO2-equivalent savings than carbon capture technologies or carbon pricing alone. Carbon pricing for WtE may result in more waste going to landfills (waste leakage) because WtE and recycling would become more expensive.
2. Carbon Capture, Utilisation and Storage (CCUS) is a concrete vision and part of the ultimate solution, but there is no business case yet for the WtE sector
The development of CCUS in the WtE sector is still at an early stage. While the potential for carbon use and long-term carbon storage is significant – and may ultimately contribute to negative emissions – progress is currently hindered by the absence of CO2 transport and storage infrastructure, high upfront costs, a lack of effective financial support and a robust regulatory framework.
3. Apply the ‘polluter–pays’ principle where it works
WtE plants are not the origin of the fossil carbon contained in waste; rather they represent the final treatment option for non-recyclable plastics and other fossil carbon containing materials, which are a growing global challenge. Responsibility for the climate impacts associated with the thermal treatment of virgin, fossil-based, non-recyclable materials should therefore be shared with producers.
4. Foresee a future where carbon is made circular as a resource and where waste is valorised via material and energy recovery
To ensure the emissions trading scheme can effectively contribute to a climate-neutral waste system, substantial adjustments are essential. The sector stands ready to work with policymakers to develop a tailored, future-proof framework that enables a successful transition to climate neutrality.
To read the full policy document visit: eswet.eu/wp-content/uploads/2026/03/CEWEP-ESWET_Joint-Policy-Brief_WasteEU-ETS_March26.pdf
