MEP Grégory Allione (Renew) has raised concerns about the European Commission's upcoming review of the Emissions Trading System (ETS), specifically regarding the potential inclusion of municipal waste-to-energy (WtE) units. In a parliamentary question dated 3 June 2026, Allione warned that integrating WtE into the ETS could create policy incoherence and economic distortions, given that operators have no control over waste composition or volume and lack reduction levers such as fuel substitution.
Allione noted that around 80% of fossil emissions from WtE units come from non-recyclable plastics, which fall under circular economy policies. He pointed out that the Circular Economy Act, expected in September, must address these challenges, but legislation to reduce non-recyclable plastics will only enter into force in 2035. The MEP asked how the Commission can ensure coherence between the ETS and the Circular Economy Act to avoid conflicting price signals and pass the carbon price onto producers of non-recyclable plastics, in line with the polluter pays principle.
He also questioned whether the Commission has assessed the impact on energy security and risks of distortion of competition between Member States, given that WtE units supply heating networks with locally recovered energy. Finally, Allione asked how to prevent a shift towards landfill, as the EU aims to bury less than 10% of municipal waste by 2035.
The Commission is expected to reply within approximately six weeks, and its answer will signal policy direction on the ETS review and its interaction with circular economy goals.