Turning Waste into Opportunity: Victoria’s New Circular Economy Rules
Waste to Energy (WtE) technologies are widely adopted across Europe, Asia, and North America as part of integrated waste management strategies. Countries like Sweden and Japan have successfully used WtE to reduce landfill dependency while generating electricity and heat from non-recyclable waste. These systems help divert waste from landfills, significantly cutting methane emissions, and recovering energy that would otherwise be lost. However, the community remains concerned, particularly around air quality. Thermal WtE processes release pollutants such as nitrogen oxides (NOx), sulfur dioxide (SO2), and particulate matter, which can impact public health if not properly controlled. Modern facilities mitigate these risks through advanced emission control technologies, but the effectiveness of WtE still depends on strict regulatory oversight, waste segregation, and continuous monitoring.
The Victorian Government has introduced the Circular Economy (Waste Reduction and Recycling) (Waste to Energy Scheme) Regulations 2023, a key step in reshaping how waste is managed across the state. These regulations form part of a broader strategy to reduce landfill dependency and promote sustainable resource recovery. On 15 July 2025 the Victorian Government introduced the Circular Economy (Waste Reduction and Recycling) (Waste to Energy Scheme) Amendment Regulations 2025.
Key Changes
- A cap on the amount of permitted waste that can be processed by thermal WtE facilities was increased from 2 million tonnes to 2.5 million tonnes per financial year.
- The legislation defines thermal WtE processes as those that recover energy from waste via incineration, gasification, or pyrolysis. Importantly, biological processes, landfill gas recovery, and advanced recycling are excluded from the scheme.
- Businesses operating or planning to develop WtE facilities must now obtain a cap licence from Recycling Victoria, which authorises the volume of waste they can process annually.
Implications for Victorian Businesses
- The regulations provide clearer pathways for licensing, helping businesses plan and invest in WtE infrastructure with greater confidence.
- Companies are encouraged to prioritise waste avoidance and recycling, with WtE positioned as a complementary (not primary) solution.
- Expressions of interest may be invited for the unused portions of the 2.5 million tonne cap, this provides opportunities for new entrants to participate in the scheme.
Our Expertise: How Peter J Ramsay & Associates Adds Value
Navigating the evolving regulatory landscape can be complex, but Peter J Ramsay & Associates is here to assist. Our team offers tailored support to assist businesses meet compliance obligations under the new and consistently evolving legislation, including:
- Environmental, Health and Safety Legal Registers and Audits: We develop and maintain legal registers and conduct compliance audits to ensure your operations align with current state and federal legislation;
- Air Quality Assessment: Our specialists provide detailed air quality impact assessments, including dispersion modelling, to evaluate potential emissions and support planning proposals.
Waste management is a shared responsibility. For Victoria, balancing environmental protection with industrial growth demands forward-thinking solutions. The new Circular Economy regulations offer a framework for more sustainable practices, but success depends on informed action. At PJRA, we support industry, developers, and communities in navigating these changes through proven expertise in compliance, air quality, and environmental planning. Together we can build a cleaner, more resilient future.