Policy and Insight

• RRUK members call for the removal of plastics from residual waste streams. 
• Plastics account for up to 70% of fossil carbon in residual waste sent to Energy from Waste (EfW) plants.
• Local authorities could halve their future ETS costs once the waste sector enters the ETS if more plastics are recycled or removed before EfW treatment.
• Report highlights that 62% of plastics in residual waste could have been recycled or avoided.

21 November, London – A new report prepared by global sustainability consultancy Anthesis and commissioned by Resource Recovery UK (RRUK) highlights that removing plastics from the UK’s residual waste stream is essential to cutting emissions, supporting local authorities through the expansion of the Emissions Trading Scheme (ETS) and unlocking growth in domestic recycling.

The report, Advancing the Circularity of Plastics in the UK, consolidates modelling, analysis and research from inhouse and industry experts to present a strong call to action for the UK Government. The timing is significant as the UK’s Energy from Waste (EfW) sector prepares to join the ETS in 2028. The report warns that current EfW emission profiles could make costs for local authorities unsustainable unless the level of fossil-based plastics in residual waste is significantly reduced. 

The research also dispels the common misconception that EfW operators want plastics in their feedstock due to the high calorific value. In reality, plastics reduce operational efficiency, damage equipment and prevent valuable materials from being recycled.

Anthesis estimates that local authority-collected plastics in England alone generated around 5 million tonnes of fossil CO₂e in 2023/24. Under the ETS, gate fees charged by EfW facilities to accept and process waste could rise by £20-£100 per tonne, and according to CIWM this could potentially cost UK local authorities an additional £660 million annually from 2028. Without action, these costs are projected to rise further, reaching £850 million a year by 2035 – but that they could be halved if more plastics are recycled or removed before EfW treatment.

The report highlights that: 

• 62% of plastics in residual waste could have been recycled or avoided, underscoring the potential value of improved collection, reuse and recycling.[1]
• CIWM modelling suggests that if local authorities in England meet the 65% recycling target by 2035 and recover 30-60% of plastics from residual waste, ETS costs could be cut in half – from around £850 million per year to between £326 million and £418 million.[2]
• Expanding UK sorting and recycling infrastructure could directly create over 1,000 new jobs, with thousands more across construction and logistics.[3]

The report outlines six policy recommendations to drive plastic waste up the waste hierarchy, including new measures to curb unnecessary plastic production, support reuse models, improve domestic recycling economics and ensure ETS design encourages circularity.

Mike Maudsley, Chair of RRUK and CEO of enfinium, said: “There’s a long-standing misconception that EfW operators want plastics in our plants. This is far from the truth. In fact, plastics drive up emissions, reduce efficiency and prevent valuable materials from being recycled. Removing plastics from residual waste is the most effective way to cut carbon in our sector and reduce incoming ETS costs.”

Ellen Struthers, Associate Director at Anthesis, said: “Plastic plays an essential role in our lives when used in the right applications, but far too much is entering the market, and we remain a long way from achieving a circular economy. While the UK Government has shown leadership through recent policies to support plastic circularity, urgent action is now needed to radically reduce plastic use, accelerate reuse, and invest in domestic infrastructure. Addressing this challenge will cut fossil-based emissions, ease financial pressures on local authorities, strengthen the UK economy, and enhance sustainable performance across the value chain.”

The report highlights the scale of the opportunity as the UK Government rolls out its Extended Producer Responsibility scheme and prepares to consult on its Circular Economy Strategy for England. RRUK and its members are calling for coordinated government action to ensure plastic use and production is reduced, and where this isn’t possible the material is as far as possible recycled and kept in circulation for longer.

Alongside encouraging efforts to remove plastics from the residual waste stream, the EfW sector is investing in carbon capture and storage (CCS) technology to capture both fossil and biogenic CO₂ emissions from EfW facilities, helping to deliver long-term decarbonisation and support the UK’s net zero goals. The presence of biogenic carbon in waste feedstocks means that waste-to-energy with CCS (WECCS) can create high quality carbon removals, which will be an essential part of reaching net zero. The role of WECCS in driving decarbonisation in the UK was recently highlighted in the Independent Review of Greenhouse Gas Removals carried out by Dr Alan Whitehead.

RRUK members are leading in the development of commercial scale CCS projects and expect to invest over £5bn between now and 2040, subject to market progress, with RRUK member Encyclis having recently signed final contracts with the UK Government for the UK’s first full scale WECCS project. 

Notes to editors

The report, Advancing the Circularity of Plastics in the UK, sets out six key policy recommendations for policymakers to help reduce plastics in residual waste, support local authorities as the UK Emissions Trading Scheme (ETS) expands to the EfW sector, and accelerate progress towards a circular economy.

The recommendations are to:

1. Develop policy to radically reduce plastic use and production, ensuring that only essential plastics are placed on the UK market and preventing unnecessary plastics from entering the waste stream.
2. Mandate and invest in reuse models, addressing barriers such as logistics, washing and filling infrastructure to accelerate the transition to reusable packaging and products.
3. Create demand and incentives for domestic recycling, including fiscal reforms to make recycled plastics competitive with virgin materials, and stronger enforcement against fraudulent imports.
4. Invest in national and local public engagement campaigns to cut plastic use and improve recycling participation, with clear and consistent labelling to build public confidence in recycling systems.
5. Support initiatives to remove textiles and hard-to-recycle plastics from residual waste, including considering the introduction of a mandatory Extended Producer Responsibility scheme for textiles.
6. Ensure the expansion of ETS to include EfW is implemented carefully, aligning with wider circular economy policies and ringfencing ETS revenues to support UK recycling infrastructure and innovation.

    

   Together, these measures would reduce fossil-based emissions from waste, lower costs for local authorities, and help realise the economic opportunities associated with a more circular, resource-efficient economy.

    

   About RRUK 

    

   Resource Recovery UK (RRUK) is the leading alliance for UK energy from waste (EfW) operators, with members – Cory, Encyclis, enfinium and Viridor – representing the majority of the sector. An affiliate of the Environmental Services Association, RRUK advocates on behalf of the sector to promote EfW’s role in the pathway to green growth, net zero and a circular economy – one where materials are reused, repaired and recycled to their fullest potential and where the value of residual waste is maximised through resource recovery.

    

   For media inquiries, please contact: resourcerecoveryuk@headlandconsultancy.com

    

   About Anthesis 

    

   With world-class expertise in science-based advisory, market-leading digital solutions, the development of high-quality carbon removal projects and purpose consulting, strategy, and communications, Anthesis is uniquely positioned to manage risk and find value for our clients on their transformation journeys.

    

   Anthesis supports over 4,000 clients across all industry sectors, including multinationals such as Reckitt, Cisco. Tesco, Nestlé, and Target. The company brings together 1,400 experts guiding clients in 80 countries around the world, with offices in Australia, Belgium, Brazil, Canada, China, Colombia, Finland, France, Germany, Ireland, Italy, the Middle East, the Netherlands, the Philippines, Portugal, Singapore, South Africa, Spain, Sweden, the UK, and the US. For more information, visit www.anthesisgroup.com

    

   About the research 

    

   Advancing the Circularity of Plastics in the UK was commissioned by RRUK and delivered by Anthesis in autumn 2025. The research examines how removing plastics from residual waste can cut emissions, lower ETS costs for local authorities, and support UK growth in recycling and reuse infrastructure.

    

   -ENDS-

    

    

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   [1] 32% plastic packaging film, 5% carrier bags, 6% PET bottles, 4% HDPE bottles 1% other plastic bottles, 14% pots, tubs and trays based on WRAP (2017). National Household Waste Composition. (Analysis considers pure plastic materials only i.e. third of pure plastic materials, excluding textiles, waste electricals etc).

   [2] CIWM (2025). Report Urges Caution When Introducing ETS into UK Energy from Waste Sector.

   [3] Viridor (2022). New research finds £1bn investment in recycling would end UK plastic exports as plastic collected for recycling is forecast to increase by 45% by 2035.

• UK currently lagging behind European peers, with heat networks accounting for less than 3% of heat demand.
• Households could save up to £22,000 over 25 years with EfW-powered heat.
• EfW plants already showing strong potential with industrial heat offtake partnerships.
• Urgent policy and regulatory changes needed to realise the potential of EfW heat networks.

25 September, London – The UK has a significant opportunity to accelerate its journey towards meeting its net zero targets through energy from waste-powered (EfW) heat networks[*], according to a new report by economic consultancy NERA, commissioned by the Environmental Services Association (ESA) and Resource Recovery UK (RRUK).

The new report underscores the potential value of heat networks for decarbonising homes and businesses, supporting the nation’s legally binding climate goals, and lowering household energy bills.

Heat networks currently account for less than 3% of the UK’s heat demand, compared to significantly higher rates in other European countries. The Government has set a goal of expanding this to around 20% by 2050, but the report warns that to achieve this, and begin to catch up with international peers, there is a clear need for policies to incentivise investment.

The report outlines a clear policy and regulatory opportunity: by harnessing heat produced by EfW facilities, the UK can fuel low-cost and low-carbon heat networks, reducing greenhouse gas emissions and delivering broad economic and social benefits.

Key findings from the report include:

• Untapped potential: Heat networks are currently underutilised in the UK, serving less than 3% of the heat demand. In contrast, countries like Denmark and Sweden have market penetration rates of 64% and 53%, respectively. To reach its 2050 target of around 20%, the UK must accelerate its adoption of this vital technology.
• Economic and social benefits: EfW-powered heat networks could save households up to £22,000 over a 25-year period, compared to traditional heating methods like gas boilers and low carbon alternatives such as heat pumps. These networks also offer significant reductions in carbon emissions by minimising the use of gas in homes, which in turn improves air quality. This approach benefits both high-density urban areas and less densely populated regions. Additionally, with the UK being a net gas importer – much of which is used for heating – transitioning to domestic heat sources through EfW networks could help reduce reliance on fossil fuels.
• Regulatory and market reform: The report provides a robust case for swift action from the UK Government and energy regulator Ofgem to implement policies that incentivise investment in heat networks. This includes establishing effective regulation and introducing mechanisms to ensure a continuous and reliable supply of heat from EfW plants.
• Coordination and incentives: The report suggests creating incentive schemes that encourage better coordination among stakeholders involved in the production, distribution, and consumption of EfW heat. By addressing the existing ‘first-mover disadvantage’, these incentives could unlock the vast potential of heat networks.

Working with partners, ESA and RRUK members are already investing in projects to supply heat to nearby homes and businesses and ensure this valuable by-product is not wasted. For example:

• At Runcorn, Viridor's EfW facility supplied 470 GWh of heat in 2022. At Trident Park EfW, Viridor is developing heat offtake for a potential 15.75 MW supply to the Cardiff Heat Network. They are also actively developing Carbon Capture and Storage (CCS) at Runcorn, with plans to expand CCS across the fleet.
• The Kemsley facility exports heat to a nearby paper mill, and enfinium is assessing the scalability of heat offtake for local networks. They are also developing CCS projects, including a potential £800 million investment at Ferrybridge, which could capture 1.2 million tonnes of CO2 annually.
• Encyclis's Earls Gate EfW facility, operational since 2024, delivers 33 MW of heat to neighbouring industries. They are expanding district heating capabilities at other sites and have secured government funding for heat networks at Rookery South. Encyclis is also pioneering CCS technology with a lead emitter project within the DESNZ cluster sequencing programme at Protos.
• Cory plans to supply heat to 21,000 homes in Bexley and Greenwich from its Riverside 1 and Riverside 2 EfW facilities, which will also incorporate CCS technology. The company is also exploring the use of thermal batteries to transport waste heat via river, including a potential project to supply low carbon heat to 3,000 homes in central London.

The report concludes that with the right regulatory framework and policy support, the UK has a unique opportunity to ensure the full potential of the UK’s EfW plants can be realised through further projects of this kind.

Jacob Hayler, Executive Director of ESA said: “This report underscores the critical role that energy from waste can play in the UK’s decarbonisation efforts, making the best use of the heat produced and advancing us towards a circular economy. EfW-powered heat networks represent a significant opportunity to not only cut carbon emissions but also to drive innovation and efficiency across the sector.”

Owen Michaelson, Chair of RRUK and CEO of Encyclis said: “The findings of this report reveal a significant and largely untapped opportunity for the UK to advance towards its net zero targets, with energy from waste playing a pivotal role in developing scalable heat networks. This approach promises not only to reduce carbon emissions but also to deliver substantial cost savings to households. The potential is immense, and with coordinated effort between policymakers and industry, we can fully realise these benefits."

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About the ESA and RRUK

The Environmental Services Association (ESA) is the trade association representing the organisations leading the United Kingdom’s drive towards a more circular economy. It is the collective voice of the UK’s leading recycling and waste treatment service providers, who provide essential waste services to millions of people across the UK every day. Working with our members, drawing upon their depth of expertise and experience, the ESA helps to ensure that policy, regulation and operations represent best practice and deliver the best triple-bottom line outcomes – protecting people and the planet while supporting investment in a vibrant, competitive and sustainable sector. For further details please visit www.esauk.org.

Media contact, ESA Press Office: 020 7591 3214, Email: b-johnson@esauk.org.

Resource Recovery UK (RRUK) is the leading alliance for UK energy from waste (EfW) operators, with our members – Cory, Encyclis, enfinium, and Viridor – representing the majority of the sector. Through advocacy, education, and collaboration, RRUK’s purpose is to promote the role of EfW in the UK’s circular economy and its contribution to a sustainable, decarbonised future for communities across the UK. RRUK strives to highlight EfW as strategically important national infrastructure that maximises resource efficiency, and to play a key role in the national conversation around sustainable waste management and the part EfW plays in achieving a zero-carbon future. RRUK is affiliate of the ESA, which represents the UK’s broader resources and waste management industry.

For media inquiries, please contact: resourcerecoveryuk@headlandconsultancy.com

About NERA

NERA Economic Consulting is a global leader in applying economic and financial principles to complex business, legal, and regulatory challenges. Since 1961, NERA has provided expert analysis and testimony to top law firms, corporations, and governments worldwide. Known for integrity and innovation, NERA’s work shapes policy and strategy across key industries and markets.

About the research

The ESA and RRUK commissioned NERA to explore the potential of heat networks in accelerating the UK’s decarbonisation efforts. The report focuses on how EfW facilities can leverage the steam and heat generated during waste processing to power low-cost, low-carbon heat networks. The report covers:

• The current market for heat networks and the role of EfW.
• The evolving regulatory landscape for heat networks in the UK.
• Cost competitiveness of EfW-powered heat networks compared to alternatives.
• The broader economic, societal, and community benefits of EfW heat offtake.

[*] EfW facilities produce heat from the combustion process, which is used to convert waste into electricity for the national grid. This heat can be used to supply heat networks, otherwise known as district heating.

As the UK works towards meeting its 2050 net zero target and build a circular economy, there is work to be done to ensure we decarbonise the economy quickly, while making the best use of existing resources and capitalising on the multitude of sustainable growth, jobs and investment opportunities. As the leading alliance for UK Energy-from-Waste (EfW) operators, we believe our sector has a unique role in making this a reality.