It is estimated that around 2.5 billion paper cups are thrown away in the United Kingdom every year, however only 1% of these cups are recycled.
Disposable cups contain a plastic lining that makes them hard and expensive to recycle.
In the report's conclusions it said: "To ensure that disposable coffee cups and other types of paper food packaging are captured and recycled, the revenue from the 25p coffee cup charge should be used to support local councils to provide food packaging recycling bins and waste management. If a sustainable recycling system for disposable coffee cups can not be set up by this date, they should be banned". They hope a "latte levy" would force consumers to use recyclable cups and reduce waste.
From next week, Greggs Bakery will offer 20p off hot drinks for customers who bring their own cups.
The most common tactic for cutting waste has been to offer customers discounts for bringing in their own reusable cups.
"The government should set a target for all disposable coffee cups to be recycled by 2023. We now have 1.8 percent of our customers using reusable cups", it said in a statement.
Reusable cups will be promoted alongside the charge, the revenue from which will go towards a "comprehensive behaviour change study" run by Hubbub.More news: McBurnie urges Swansea to build on Watford win
Less than 1% of coffee cups in the United Kingdom are recycled.
The report suggests that higher charges could be paid by those using hard to recycle materials, encouraging better design for recyclability and enabling investment in United Kingdom recycling systems.
"In the United Kingdom we have a very, "on-the-go" coffee drinking culture".
"Taxing the morning coffee run will not address the issue of litter but it will hurt consumers and impact already struggling high streets".
Industry figures have called for any charge to come alongside a coherent plan of change across the supply chain, not just focusing on consumer behaviour.
From this, the Committee found that consumers are more likely to respond to a charge than a discount, as shown by the plastic bag charge, which reduced plastic bag use by over 83%.
Pearlfisher head of realisation Jen Nathan says, "Designers and design agencies should be playing a significant role in helping to advise their clients on the most sustainable materials and production practices and connecting them with innovative partners and suppliers who are helping to find solutions to challenges like that of takeaway coffee cups". He says the industry is working to increase recycling rates.