Waste to Energy Scheme
Victoria’s Waste to Energy Scheme licenses and regulates operators to ensure only specific amounts and types of waste are used in thermal waste to energy processing. Landfills are filling up and Victoria will start to run out of landfill capacity in the mid-2030s. Securing infrastructure that can process large quantities of waste that can’t be recycled is a high priority for Victoria.
Waste to energy:
- involves recovering energy from waste materials to produce heat, liquid fuels and electricity
- provides a better alternative to landfill for most household rubbish, reducing the state’s reliance on landfills.
Only waste that can’t be recycled can be treated in thermal waste to energy facilities.
Victoria’s Waste to Energy Scheme
Recycling Victoria regulates market-related aspects of thermal waste to energy processes under Victoria’s Waste to Energy Scheme.
Waste to Energy Scheme licences
Under the Waste to Energy Scheme, Recycling Victoria issues 2 different licences - cap licences and existing operator licences.
About waste to energy
Waste to energy provides an alternative to landfills for most types of residual waste, reducing the state’s reliance on landfills for non-recyclable or non-recoverable waste.
The Waste to Energy Scheme encourages investment that supports diversion of residual waste from landfill, while avoiding risks to recycling outcomes in the future.
The purpose of the Scheme is to:
- encourage investment in facilities that help achieve the goals and targets of Recycling Victoria
- support a diverse and competitive waste to energy market
- have a consistent, transparent and fair mechanism for licensing.
There is a cap on the amount of permitted waste that is treated in thermal waste to energy processes to ensure investment in waste to energy facilities does not compromise current and future investment in Victoria’s efforts to avoid, reuse and recycle more waste.
Further information
- Circular Economy (Waste Reduction and Recycling) Act 2021
- Circular Economy (Waste Reduction and Recycling) (Waste to Energy Scheme) Regulations 2023
- Waste to energy: A framework for sustainable and appropriate investment
Updated 15 August 2025
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