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Waste to energy

A framework for sustainable and appropriate investment

A framework for sustainable and appropriate investment

Waste to energy involves turning waste material into useful energy resources such as heat, electricity, and fuels. After waste avoidance, reuse, and recycling, waste to energy is the final opportunity to get value from material that would otherwise go to landfill.

Victoria’s Waste to Energy Scheme is established by the Circular Economy (Waste Reduction and Recycling) Act 2021 and the Circular Economy (Waste Reduction and Recycling) (Waste to Energy Scheme) Regulations 2023.

The Act and Regulations specify the amounts and types of waste that can be used in thermal waste to energy processing. They place a cap on the amount of waste that can be heat-treated to generate energy and outline how the cap is to be implemented. They also establish a licensing scheme for waste-to-energy facilities operating under the cap.

The cap limit has been set at 2.5 million tonnes per annum as committed in the Economic Growth Statement – Victoria: Open for Business.

For more information on past public consultations on waste to energy, please visit Engage Victoria.

Waste to energy licensing

Waste to energy licensing is overseen and delivered by Recycling Victoria. However, to operate a thermal waste to energy facility you will also need permits and licences under the planning and environment protection laws within Victoria.

Recycling Victoria:

For more information on the waste to energy licensing process, please visitthe waste to energy licensing scheme.

The cap on waste to energy is part of our circular economy policy, Recycling Victoria: A new economy.

Frequently asked questions

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Waste to energy is a form of energy recovery that involves turning waste material into energy products like heat or electricity.

Waste to energy provides an opportunity to get value, in the form of energy, from waste that would otherwise go to landfill.

The safety of Victorians and our environment is our priority. The Victorian Government has established a robust framework to regulate waste to energy. The Environment Protection Authority Victoria (EPA), planning authorities and Recycling Victoria each have a role to play in ensuring that thermal waste to energy facilities meet best-practice emissions controls, environment protection and local planning requirements, whilst also contributing to circular economy outcomes.

There are some waste to energy facilities already operating in Victoria that are subject to conditions set through planning permits. These facilities must also comply with obligations set under the Environment Protection Act 2017.

A circular economy prioritises waste avoidance, waste reduction, material reuse and recycling. Waste to energy is the final opportunity, after avoidance, reuse and recycling, to extract value from materials that would otherwise go to landfill.

As Victoria shifts towards a circular economy, waste to energy facilities can play a role in diverting waste from landfills and creating valuable energy that can be used by industry or exported to the electricity grid.

The cap sets a limit of 2.5 million tonnes per annum on the amount of waste that can be heat-treated to make energy. It is designed to strike the right balance between support for sustainable and appropriate industry investment to develop new technologies, and a focus on waste avoidance and recycling in Victoria’s transition to a circular economy.

The Framework supports sustainable and appropriate industry investment to develop new technologies.

The Victorian Government supports waste to energy technologies where they:

Environment, water & energy

Updated 25 July 2025

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