Cap-and-trade on residuals: Proposals for a Circular Economy Act

Zero Waste Europe’s latest policy brief proposes introducing an EU-wide cap-and-trade system for residual waste, i.e. the waste that ends up in landfills or incinerators. Rather than focusing solely on “not landfilling,” this approach would set clear limits on residual waste generation, rewarding countries and operators that reduce it and applying levies where it exceeds agreed benchmarks.

By capping residual waste, the proposal would drive waste prevention, reuse, and recycling, while simultaneously cutting greenhouse gas emissions (GHG) linked to landfilling and incineration. A fair, transparent system of “passive trading” between Member States would ensure shared responsibility and accelerate the EU’s transition to a truly circular, climate-neutral economy.

Available in English.

Executive Summary in English and Polish.