Sludge production and disposal are entering a period of dramatic change, driven mainly by EC legislation. The urban waste water treatment Directive will result in at least 50% more sludge being produced by the end of 2005 and, during the next decade, sludge disposal to all the established outlets could become increasingly difficult or, in the case of sea disposal, will become illegal. The challenge facing the members of the European Union is how to (a) maintain cost-effective and secure methods of sludge disposal and (b) engender public confidence in all disposal and recycling options. What is required is not so much innovative technology, although this may be essential, but more innovative attitudes and approaches to promotion and defending existing outlets.