Wellington's composting facility has stopped taking compostable cups, which has angered companies like Mojo who say they're trying to do the right thing.
However, composting a coffee cup isn't as simple as some might think - sparking renewed calls to phase out takeaway cups altogether.
"These cups are not very good for the environment and there's an easy alternative: sit down at the cafe or just bring your keep cup," Wellington Councillor Iona Pannett told 1 NEWS.
Companies like Mojo, which have invested in a system of composting their cups, aren't happy with Capital Compost's decision to stop accepting the cups.
"That was a complete surprise to us, it has been a difficult process from the start," Mojo NZ General Manager Katy Ellis says.
The facility could compost the cups, but it's complicated.
They'd need to run a second stream alongside the organic compost, they'd need no contamination and around 200,000 of the cups a month.
Currently Capital Compost say they're only receiving around 100 cups a day.
Mojo is now looking to other businesses in the capital to find a solution.