Europe’s Waste to Energy market focuses on modernisation as new growth emerges in Asia. A recent study reveals the shifting global dynamics and challenges within the industry.
Key Takeaways
- The European Waste-to-Energy market is modernising, with growth shifting towards Asia as new systems are deployed.
- Ecoprog reports a net increase in Europe’s WtE capacity, yet modernisation becomes more critical than new plant construction.
- Globally, the number of thermal treatment plants rose to over 3,100, with significant growth in Asia, particularly in Indonesia and Thailand.
- China, despite previously leading in expansion, now faces a downturn due to economic issues and overcapacity in some cities.
A new market study by Ecoprog indicates that the European Waste-to-Energy (WtE) market is increasingly focusing on modernisation. At the same time, significant new growth is occurring in Asia. In 2025, the plant inventory in Europe grew by approximately 300,000 annual tonnes. New commissioning of 1.2 million annual tonnes was offset by the decommissioning of almost 900,000 annual tonnes. This shows that replacement and modernisation of existing plants are now more significant than new construction.
The report notes that a wave of modernisation is beginning in countries such as Germany. This process is already further advanced in France. For the coming years, Ecoprog expects the commissioning of new and modernised firing lines with a capacity of two to four million annual tonnes per year. Additionally, new WtE capacities are still required, particularly in Southern and Eastern Europe, to implement EU legislation and reduce landfilling.
Global Growth Continues
Globally, the number of plants for the thermal treatment of non-recyclable waste continued to increase in 2025. By the end of the year, more than 3,100 thermal waste treatment plants were in operation worldwide. These had a total capacity of over 640 million annual tonnes. This represents a net increase of around 16 million annual tonnes compared to the previous year. In total, new capacities of around 18 million annual tonnes were commissioned, while just under 2 million annual tonnes were shut down.
Outside of China, the Asian market is gaining momentum, particularly in Indonesia, Thailand, and the Philippines. The number of projects is also growing in Central Asia, for instance in Uzbekistan. This development is driven by intensifying waste management problems and the efforts of Chinese developers seeking new sales markets.
Chinese Market Experiences Downturn
While China accounted for the largest expansion in 2025 with over 12 million annual tonnes, the market there is experiencing a downturn. In the record year of 2021, 190 plants with a capacity of around 64 million annual tonnes commenced operations. Now, WtE capacities in many large cities on the densely populated east coast are sufficient or oversized.
Due to economic problems and an expansion in recycling, many plant operators are facing difficulties in acquiring sufficient waste volumes. This presents a challenge for Chinese companies, as many are both plant constructors and operators. They now face a lack of new projects as well as a shortage of available waste.
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