European standard

Emissions trading is an economic system that allows companies to buy and sell emission allowances. It is designed to create a financial incentive for reducing greenhouse gas emissions. Within the EU Emissions Trading System (ETS), the world's largest emissions trading program, companies are allocated a certain number of emission allowances. Companies that emit less than their limit can sell their excess allowances to other companies that need more. This system supports the "polluter pays" principles and at the same time promotes sustainable innovations by internalizing the costs of pollution.

The EU ETS was launched in 2005 and has since grown into the largest emissions trading system in the world. A total of 30 countries are taking part, including all EU Member States, Iceland, Norway and Liechtenstein. Together they work to reduce carbon emissions in Europe.

Increasingly extensive, step by step

The importance is significant: approximately 10,000 companies in Europe fall under the EU ETS. These companies are together responsible for almost 45% of total carbon emissions in the EU. Initially, the EU ETS focused on heavily polluting industries and energy producers. These sectors accounted for the greatest impact on emissions and were a logical place to start. But the system has developed over time. In 2012, aviation was added, followed by maritime shipping in 2024.

More sectors will follow in the coming years. From 2028 onward, transport, buildings and other sectors, including possibly waste incineration, will fall under a similar emissions trading system. Although this new system is separate from the current EU ETS, it works on the same principles: a limited number of emission allowances and a decrease in permitted emissions over time.

This gradual expansion shows how flexible the EU ETS is in tackling new challenges. The system not only offers a route to a more sustainable Europe, but also proves that market mechanisms can effectively contribute to achieving climate goals.

How diaper recycling affects emissions trading

By recycling diapers, we can directly contribute to the reduction of greenhouse gas emissions. This has several implications for emissions trading:

Fewer emission allowances needed: Municipalities and waste processing companies that use recycling techniques can significantly reduce their emissions. This creates surplus emission allowances on the market, thus generating additional revenues and lowering the market price of emission allowances.
Innovation and scaling up: Within the EU ETS, parties can obtain emission allowances for sub-installations, free of charge. Diaper recycling could qualify for this based on benchmarks, because it produces polymers and uses heat. Innovative waste processors can thus create even more value in this circular transition by recycling diaper waste and using heat.
Chain reaction: Diaper recycling can act as an important catalyst in raising wider awareness of waste management and carbon emissions. Municipalities and companies that actively focus on diaper recycling lead by example, which can contribute to greater involvement and even behavioral change among citizens and companies.

Less waste in incinerators reduces carbon emissions from municipalities and waste processors, which means fewer emission allowances are needed. This in turn reduces the demand for emission allowances and thus encourages companies to become more sustainable, quicker. This way, diaper recycling not only creates direct emission gains, but also starts a chain reaction that contributes to a broader impact in society.

Win-win for climate and economy

The emission reduction from diaper recycling, together with emissions trading, therefore offers a unique opportunity to intensify the fight against climate change. By using waste intelligently, we can not only reduce greenhouse gas emissions, but also create economic benefits within the Emissions Trading System. Whether it’s developing new markets in Europe or increasing impact in the Netherlands, one thing is for sure: diaper recycling has the potential to create tangible change. A change that pays off.

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