A New South Wales parliamentary inquiry has recommended that the state government halt two proposed waste-to-energy projects that would process large quantities of rubbish from Sydney in regional communities. The recommendations have renewed debate about how Australia should manage growing waste volumes while protecting the environment and addressing future landfill shortages.

The inquiry examined proposals for facilities at Parkes, in the state's Central West, and near Tarago, in the Goulburn region. Both projects are intended to process waste through thermal treatment, a method that uses heat to convert rubbish into energy.

After conducting seven hearings across 2025 and 2026, the parliamentary committee delivered 22 recommendations. These included rejecting the two proposals currently under consideration and introducing a moratorium on waste-to-energy developments while further independent assessments are carried out.

Committee chair Nichole Overall said the inquiry had heard significant concerns about community acceptance and the suitability of locating such facilities in regional areas. Residents and local representatives have questioned why towns outside Sydney should receive waste generated hundreds of kilometres away.

One of the major concerns is the scale of the proposed Parkes Energy Recovery facility. According to the project's planning information reported by ABC News, the development could process approximately 732,000 tonnes of household and industrial waste annually if approved. Most of the rubbish would be transported from Sydney by rail.

The facility has been proposed as a way to turn waste into electricity, potentially generating up to 80 megawatts of power. Supporters of waste-to-energy technology argue that it can reduce the amount of rubbish sent to landfill while producing electricity from materials that cannot readily be recycled.

However, opponents argue that transporting such large quantities of waste to regional communities could increase costs, create additional environmental impacts and place an unfair burden on residents living near the facilities.

A separate proposal near Tarago, known as the Woodlawn Advanced Energy Recovery Centre, would process approximately 380,000 tonnes of non-recyclable waste from Sydney each year. Its developer has said the facility could generate enough electricity to supply up to 40,000 homes. The proposal remains part of the planning process.

The debate is becoming increasingly urgent because Greater Sydney's existing landfill capacity is expected to come under severe pressure, with available capacity projected to run out around 2030. This has intensified calls for the state to develop a long-term waste strategy that combines recycling, waste reduction, improved resource recovery and appropriate disposal methods.

The parliamentary committee also recommended maintaining appropriate distances between proposed facilities and sensitive locations, including food production areas, schools and hospitals. It called for further independent review of the designated waste-to-energy precincts.

Not all committee members agreed with the proposed approach. Some argued that imposing a moratorium before suitable alternatives are available could make the state's waste-management challenges harder to solve. Supporters of the technology maintain that facilities can operate safely when subject to strong standards and effective regulation.

The NSW government is expected to respond to the inquiry's recommendations by 20 January 2027. The recommendations do not, by themselves, constitute a final government decision on either project.

The outcome could influence future waste-management policy across New South Wales, particularly the balance between metropolitan waste needs, regional community concerns and the development of alternative energy sources.