The Committee's proposed "latte levy" would be used to encourage customers to adopt reusable cups, while revenue from the levy would go into improving the UK's recycling infrastructure for packaging waste.
Veolia Environmental Services responded to the report saying that it is already leading a solution to collect, recycle and re-use Britain's coffee cups, which has seen 10 million of them recycled in the last eight months.
The committee's chair, Mary Creagh MP, said: "The UK throws away 2.5 billion disposable coffee cups every year - that's enough to circle the planet five and a half times".
Research by psychologists suggests charging customers 25p for a disposable cup would have a greater impact, reducing the number sold by up to 30%.
The Committee has asked the Government to require coffee cups from cafes without in-store recycling systems to be printing with "not widely recycled" labels to raise awareness of the issue.
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To coincide with the launch of the report, Committee chair Mary Creagh MP said a revolution in recycling is needed given the United Kingdom coffee shop market's continued expansion and the current inadequate action on coffee cup waste.
"There is no excuse for the ongoing reluctance from government and industry to address coffee cup waste", the report said.
"Just like the plastic bag charge we are all now familiar with, a charge added to our coffee at the point of purchase will help consumers think about whether to take a refillable cup to the cafe", Laura Foster, head of clean seas at the MCS, said in a statement.
However, the London trial, which will run for three months starting in February, is an important first step by the United States chain - and the proposals are a victory for the Daily Mail's Curb the Cups campaign.
However, the difficulties surrounding the recycling of coffee cups are manifold: not only are recycling capabilities limited but the majority of cups go straight into the general waste.
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Welsh ministers are considering asking for powers to tax the cups and other plastics that are hard to recycle.
However, due to their plastic lining, customers who put them in the recyclable waste effectively contaminate it.
This was welcomed by the committee, which heard evidence during the inquiry that consumer confusion around coffee cups is contributing to poor recycling rates.
Improve labelling to educate consumers about how to dispose of their cup.
David Palmer-Jones, CEO of SUEZ recycling and recovery, remarked that while the tax may be helpful, it has to be part of a wider reform that "shifts the burden of responsibility for all forms of packaging content, recyclability and ultimately their collection, back to the producer". Within a year, England's use of plastic bags had declined by 85 per cent.
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Mr Stemman said the industry should continue to focus on other environmental issues such as cutting water use, carbon reduction, and turning waste coffee grounds into biofuel. "A "latte levy" of 25p will remind people that their normal coffee cup is typically lined with plastic making it hard to recycle, with more than 99% of them destined for landfill or incineration".