The European Union has made progress in dealing with municipal wastewater in individual countries and as a corporate entity. However, it intends to make still further and substantial progress over the next 15 years. Currently, the most widely available options in the EU are the agriculture utilization, the waste disposal sites, the land reclamation and restoration, the incineration and other novel uses. The selection of an option on a local basis reflects local or national, cultural, historical, geographical, legal, political and economic circumstances. The degree of flexibility varies from country to country. In any case sludge treatment and disposal should always be considered as an integral part of treatment of wastewater. There is a wide range of other uses for sludge, which exploit its energy or chemical content, namely the thermal processes. The present paper sought to review past and future trends in sludge handling, focusing mainly at thermal processes (e.g. pyrolysis, wet oxidation, gasification) and the utilization of sewage sludge in cement manufacture as a co-fuel.