The future of waste management: Trends and innovations

‘Unlocking opportunity: Navigating the future of waste and resource recovery’

In this series our specialists explore the future of waste management and resource recovery. We discuss key trends, innovations and infrastructure that will allow the sector to be a catalyst in achieving a circular economy. Learn how your organisation can navigate a sector in transition and how your next project can help pave the way for a more sustainable future in Australia. This article is part one


Australia produces around 75.8 million tonnes of waste annually which is steadily increasing, making the future of effective waste management critical. Combined with growing community expectations for sustainability, an increasing focus on the circular economy, and ambitious decarbonisation targets, the recycling and resource recovery industry will continue to perform a central role. The sector is at a point of transition which will affect industry participants and influence decisions at all levels of government and throughout the supply chain.

Emerging trends and opportunities

1. Supportive policy environment

Australia is making progress in policy development and alignment with global best practices. Circular economy initiatives, such as the National Waste Policy Action Plan, aim to achieve an 80 per cent average resource recovery rate by 2030. Additionally, product stewardship schemes and regulatory frameworks, like the Australian Packaging Covenant, are promoting sustainable packaging and waste reduction. However, barriers remain, including discrepancies in waste levies, policies, and available infrastructure between states. Achieving policy targets will, therefore, require investment in new infrastructure, the supply chain, behaviour change, and end market development to overcome.

2. Source separation enables a cleaner material stream for reuse

A pivotal trend in Australia is the shift towards enhanced source separation. Initiatives such as the Container Deposit Scheme (CDS) across the majority of Australia (including the recent rollout in Victoria) has successfully incentivised recycling, reduced litter and provided a clean stream of material for reuse. Additionally, organic waste represents a significant opportunity for resource recovery. Local governments across Australia have been leading the way by rolling out organic kerbside services to collect organic material. A clean organic waste stream can be transformed into valuable products like compost and bioenergy. However, kerbside organics is not without its challenges. Issues such as contamination and the presence of substances like per- and polyfluoroalkyl substances (PFAS) from consumer products and packaging underscore the need for improved sorting technologies and strict quality controls.

For the circular economy to truly thrive, it is essential to drive both industry and households toward minimising waste generation, reducing contamination, and maximising reuse potential through stronger accountability, innovative product design, and the fit-for-purpose regulations.

3. New technologies can help us realise further gains

Technological advancements are transforming waste management in Australia, with increasing investment in innovative solutions such as chemical recycling and advanced sorting systems. For example, Rino Recycling’s new commercial and demolition recycling plant in Queensland features an automated facility capable of processing up to 1.5 million tonnes of waste annually. This supports the sustainable supply of construction materials for major infrastructure projects, including the Brisbane 2032 Olympics.

Similarly, the Sunshine Coast’s Material Recovery Facility (MRF) in Nambour is designed to enhance recycling and waste management in the region. Equipped with advanced optical sorting technology, the MRF can process over 60,000 tonnes of recyclable materials annually, ensuring high-quality material recovery.

4. Residual waste will persist, driving the compatibility of the circular economy and waste-to-energy

Waste-to-energy projects, such as the Kwinana and East Rockingham facilities that are edging towards operational commencement in Western Australia, convert waste that would otherwise be sent to landfill into energy. These facilities further seek to maximise the reuse of process residues to increase overall resource recovery. The circular economy emphasises recovery and reuse while minimising materials sent to landfills. Despite ongoing efforts for Australia to move up the waste hierarchy, truly residual waste will persist for the foreseeable future. Waste-to-energy technologies therefore form an important component of a circular economy.

5. We need to bring the community with us

Community engagement is fundamental to successful waste management strategies and sustainable outcomes in Australia. Educating and empowering individuals through targeted public awareness campaigns, school programs, and robust recycling incentives can drive transformative behavioural change. For instance, initiatives such as Love Food Hate Waste in New South Wales have effectively reduced food waste, fostered a sense of ownership among citizens, and significantly increased the diversion of materials from landfills.

However, despite these successes, critical challenges remain. Further investment in comprehensive education programs and greater alignment between jurisdictions are needed to ensure consistent messaging and overcome regional disparities. Only through a coordinated, nationwide effort can best practices be scaled and adapted to local contexts, ultimately advancing Australia's waste management goals.

6. Encouraging private sector capital

Securing private sector capital will be required to advance waste management infrastructure, given significant competing priorities for government funds. Leveraging the strong appetite from private capital markets will require procuring entities and local governments to examine funding models, financial incentives, risk allocation, and strategies to attract private investment to the sector.

There needs to be a shift in the perception of the waste and resource recovery sector away from being responsible for the waste disposal challenges created by unsustainable supply chains and excessive waste generation. The future of waste management in Australia is to embrace innovative trends and technologies and reimagine supply chains to shift the focus from waste disposal to waste reduction, reuse and repurposing to support a circular economy. Collaboration among governments, industry, communities, and technology providers is needed to build a future where ‘waste’ is instead viewed as a valuable resource material.

Need assistance?

BDO’s waste and environmental infrastructure team can assist your organisation to navigate the requirements of its next project. Contact us