The incinerator of Son Reus, in Mallorca, is classified as an incinerator with energy recovery. It was built in 1992 by the private company TIRME (shareholders URBASER, IBERDROLA, FCC [ES] and ENEL [IT]), which was given the right to waste treatment in Mallorca by the island`s government until 2041. The incinerator started to operate in 1997 and had an initial capacity of 300,000 tons/year. In 2007, this capacity was extended to 730,000 tons/year, but there is not enough waste in the island to make it work at full capacity. Overcapacity has very high potential impacts on recycling markets and on waste treatment. The economics of overcapacity dictates, that if not enough waste is send to incineration, to pay off the investments, incineration fees must increase, which has an effect on waste charges paid by households and commercial activities. The Son Reus incinerator (biggest in southern Europe) burns 84% of all municipal waste generated in the island; hence most recyclables and compostables are today incinerated. Therefore the immense efforts of several zero waste municipalities (15% of Mallorca`s population), which have implemented ambitious door-to-door separation schemes and thereby reach a recycling quote of more than 75% of the total waste, are basically useless. The island´s incinerated waste, generates over 100.000 tons of ash and dregs, serious environmental impact and a public health issue. Future EU politics may worsen situation for the protagonists of large scale incineration in Mallorca. The Resource Efficiency Roadmap establishes that no waste that can be recycled or composted should be incinerated by 2020. This may create much bigger gap between the incineration capacity and the waste effectively incinerated and therefore higher prices for residual waste in the island.