The global Waste-to-Energy (WtE) market is expanding in the face of some downturn in China, according to data from a new report released by German-based environmental consultant ecoprog.
ecoprog has completed independent environmental market analyses for sectors around the world since its establishment in 2005.
According to its newly published market study Waste to Energy 2025/2026, WtE-related project activity in Central and South-East Asia is increasing, while various modernisation projects and plant capacity expansions are underway in Southern and Eastern Europe.
The report has also revealed that the number of plants dedicated to the thermal treatment of non-recyclable waste continued to rise in 2025, with more than 3100 plants in operation worldwide boasting a combined capacity of more than 640 million tonnes treated per year – a net increase of about 16 million tonnes compared with the previous year.
In total, new WtE projects with capacities amounting to about 18 million tonnes per year were commissioned, while just under two million tonnes per year were decommissioned.
According to the report, the development of several WtE markets is partially attributable to the aggressive market expansion strategies of Chinese developers seeking to open up new sales markets.
While the largest commission increase in 2025 occurred in China, the country is facing a WtE market downturn. This can be attributed to the rapid commission of 190 WtE plants in 2021, which have since struggled to secure sufficient volumes of waste due to economic difficulties and the expansion of recycling.
Outside of China, the Asian WtE market is gaining increasing momentum, with Indonesia, Thailand and the Philippines leading the charge, while Uzbekistan in Central Asia is also a growing market.
The worsening waste management situations in these regions were identified as effective motivators for expansion in these markets.
In light of the data, ecoprog expects an increase in new-build projects in Southern and Eastern Europe. It describes the current WtE modernisation in countries such as Germany as “just the beginning”, while France is at a more advanced stage of the process.
WtE is an emerging initiative in Australia, with the opening of the first dedicated facility in Kwinana, Western Australia last year. This has been followed by planned facilities in New. South Wales and Victoria.
In the coming years, ecoprog expects the commissioning of new and modernised combustion lines with a capacity of between two and four million tonnes per year.
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