Removing plastics from residual waste could reduce emissions and unlock green growth ahead of the UK ETS transition, new report highlights

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:

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.
Mandate and invest in reuse models, addressing barriers such as logistics, washing and filling infrastructure to accelerate the transition to reusable packaging and products.
Create demand and incentives for domestic recycling, including fiscal reforms to make recycled plastics competitive with virgin materials, and stronger enforcement against fraudulent imports.
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.
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.
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.

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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.

Advancing the Circularity of Plastics in the UK

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