That is political incentive though, they aren't quite as strict here. I think, no matter how we do it, it will be more expensive to recycle. That is, unless there is a political decision to tax waste burning/landfills, or resources become very scarce.

But it really is a shame, because high density areas like Copenhagen, are ideal for pushing recycling. You get quantities, and you don't have to collect over a large geographical area. So the running cost of collecting is significantly less, and you can build larger and more efficient facilities to process and recycle the waste.