Incentivising Recycling

Recycling helps cut down waste, create jobs, and move us towards a circular economy – but it often needs a bit of support to really take off.

This section looks at practical ways governments can give recycling a boost, through funding, policies, and simple steps that make it easier for people and businesses to get involved.

Financial incentives

• Subsidies or grants – To support the start-up or scaling of recycling businesses, especially those using local or low-tech models.
• Tax breaks or exemptions – Reduced VAT or tax relief on recycled materials, recycling machinery, or waste management services.
• Low-interest loans or credit schemes – Targeted at small enterprises, youth groups or cooperatives engaged in recycling.
• Public procurement preferences – Government contracts that prioritise recycled or locally made products (e.g. furniture, bins, school materials).
• Land or facility access at reduced rates – Provision of land, buildings, or utility connections for recycling centres at low or no cost.
• Pay-as-you-throw schemes – Households or businesses pay based on the amount of waste they dispose of, encouraging better separation and recycling.
• Deposit-return schemes – Small refunds for returning recyclable materials like bottles, cans or containers.
• In-kind support – E.g. government-sponsored training, access to markets, branding or certification support for recyclers.

Regulatory incentives

• Extended Producer Responsibility (EPR) – Mandating producers to take responsibility for the end-of-life management of their products, often through fees or take-back schemes.
• Mandatory segregation at source – Making it a legal requirement to separate recyclables from general waste.
• Improved enforcement – Strengthen the capacity of regulatory bodies to enforce existing policies and guidelines effectively.
• Implementing annual improvement targets – Steadily increase the percentage of materials recycled.
• Simplified licensing – Eased or streamlined procedures for small recyclers to register and operate legally.
• Standards for recycled products – Ensuring quality and safety, which helps build consumer trust and increase demand.
• Import restrictions on certain plastics – To reduce competition from cheaper, virgin plastic or low-grade imports and support local recyclers.
• Ban or levy on single-use plastics – Driving demand for reusable or recycled alternatives.
• Integration of recycling into local waste management plans – Giving formal recognition to recycling initiatives in public policy and budgeting.