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.
The Victorian Waste to Energy Framework (the Framework), released in 2021, recognises the role of waste to energy to divert waste from landfill. The Framework includes placing a cap on the amount of waste that can be heat treated to make energy and outlines how the cap is to work.
The Framework is the foundation for the Waste to Energy scheme in the Circular Economy (Waste Reduction and Recycling) Act 2021 and the Circular Economy (Waste Reduction and Recycling) (Waste to Energy Scheme) Regulations 2023.
The Circular Economy (Waste Reduction and Recycling) (Waste to Energy Scheme) Amendment Regulations 2024 have now been made to set the cap limit at 2 million tonnes per annum and establish the cap licencing process, following public consultation from December 2023 to February 2024.
On 10 December 2024, the Victorian Government released the Economic Growth Statement – Victoria: Open for Business which commits to:
- setting the Waste to Energy cap at 2 million tonnes per annum initially to enable more municipal, commercial and industrial waste to be used to generate energy rather than go to landfill
- preparing an additional Regulatory Impact Statement, for consultation in early 2025, on increasing the cap limit to 2.5 million tonnes per annum.
Regulatory Impact Statement
The Department of Environment, Energy and Climate Action has prepared a Regulatory Impact Statement which assesses the proposed increase to the thermal Waste to Energy cap limit from 2 million tonnes per annum to 2.5 million tonnes per annum.
Consultation is open from 20 March until 17 April 2025. Have your say on proposed changes at Striking the right balance for waste to energy in 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.
- administers the waste to energy scheme
- will receive applications for waste to energy licences
- will license waste to energy operators under the cap
Recycling Victoria has commenced the licensing process by inviting expressions of interest.
For more information on the waste to energy licensing process, please visit the waste to energy licensing scheme.
The cap on waste to energy is part of our circular economy policy, Recycling Victoria: A new economy.
For more information download the following:
Frequently asked questions
Updated