The government has made £258.4M in private finance initiative (PFI) credits available for recycling and composting schemes in North London.
The North London Waste Authority (NLWA) aims to divert 400,000t of biodegradable municipal waste from landfill per year by 2020.
NLWA also plans to have at least 50% of waste either recycled or composted by 2020.
“Reducing our reliance on landfill is an essential part of the drive to tackle climate change and I welcome the ambitious commitment made by NLWA,” said environment minister Dan Norris.
“This funding demonstrates how local authorities and industry can work together to make better use of the waste that is produced, create jobs, and reduce our impact on the environment.”
NLWA will issuing contract notices to prospective bidders in the Official Journal of the European Union shortly, once Treasury conditions have been met.
The project has a reduction target of up to 100,000t of CO2 emissions each year compared with current operations.