Municipal waste incineration is currently excluded from the European Emissions Trading System (EU ETS). If incineration is included in 2028, waste companies will have to buy emission credits for each tonne of CO2 they emit when treating household, company, and industrial waste. This additional cost of incineration can stimulate waste prevention and recycling, which will then become more competitive (less costly) than incineration. Zero Waste Europe and Reloop have requested CE Delft to determine the environmental and employment effects of inclusion of incineration under EU ETS in 2030 and 2040. The study shows that incorporating waste incineration under EU ETS will result in emission reductions of at least 4 to 7 Mtonnes in 2030 and 18 to 32 Mtonnes in 2040. Extra jobs will be created since recycling activities are more labour-intensive than waste incineration.