Housing Minister Simon Coveney says the government will not introduce a minimum charge for green recycling bins.
A pay-by-weight system is coming into effect for all households from July 1st.
But Minister Coveney says it is his intention to remove the requirement for a minimum charge.
However, individual waste collectors can still implement a charge if they see fit.
Speaking in Dublin, Mr Coveney said he reached the decision following close consultation with Minister Denis Naughten.
"Recognising that there is a cost to collecting and managing recyclable household waste, the change will allow collectors the maximum flexibility to charge for this waste stream on a pay by weight basis or alternatively to absorb that cost in another part of their pricing structure", he said.
"I will be amending the relevant Statutory Instrument accordingly in the very near future", he added.
Meanwhile a pay-by-weight public awareness campaign is being rolled out by three regional waste management planning offices on behalf of the Department of the Environment.
The campaign will provide householders with information on the new charging arrangements, and how they can best manage their waste.
It says prices will vary depending on the collector and the area.
"It's now up to the waste management companies"
The Green Party has welcomed the move, but say the Government must go further to promote recycling over landfill or incineration.
Green Party leader Eamon Ryan said: "We absolutely welcome the news that the minimum charges on recycling collection will not now go ahead".
"I'm glad that the new Government have recognised that introducing these charges would have been a retrograde step, and penalised householders for disposing of waste responsibly".
"It was a short-sighted move, and the public outcry against the charges shows the level of support for recycling initiatives".
"It's now up to the waste management companies to ensure that recycling stays free to the public", he added.
John Dunne from Panda waste management says they will have to reconsider the cost for all their bins after the U-turn by Minister Coveney:
