The waste and recycling industries faced a year of significant change in 2025, marked by regulatory shifts, economic pressures, and technological advancements. The federal government, under the new Trump administration, altered its approach to regulations and waste-related priorities, while states pushed for improvements through key legislation and initiatives. The sector also saw continued consolidation through mergers and acquisitions (M&A), reshaping the business landscape.
Emissions remained a critical focus, with landfill operators grappling with stricter regulations and the need to reduce methane emissions. California, for instance, updated its Landfill Methane Regulation, requiring operators to address elevated temperatures within 120 days. Meanwhile, the Environmental Protection Agency (EPA) proposed ending its Greenhouse Gas Reporting Program, which could have significant implications for emissions tracking and reduction efforts.
Labor and economic challenges also took center stage. The Teamsters union staged a significant strike against Republic Services, highlighting tensions in labor relations. Inflation continued to impact the sector, with garbage and recycling collection costs rising by 4.6% year over year. The One Big Beautiful Bill Act provided some relief through bonus depreciation tax breaks, but environmental groups criticized the legislation for cuts to key programs.
M&A activity remained robust, with 178 deals identified across the industry in the United States and Canada. Notable transactions included the $8 billion purchase of a majority stake in GFL Environmental’s environmental services business by affiliates of Apollo and BC Partners. This trend is expected to continue, driven by the need for operational efficiency and market expansion.
At the federal level, the longest government shutdown in U.S. history affected jobs and delayed regulatory timelines. The EPA under the Trump administration proposed rescinding certain per- and polyfluoroalkyl substances (PFAS) from the National Primary Drinking Water Regulation, a move that has sparked debate. The Cultivating Investment in Recycling and Circular Local Economies (CIRCLE) Act proposed a 30% tax credit for private investments in recycling infrastructure, reflecting a broader push for domestic recycling solutions.
States and local governments also played a pivotal role in shaping the sector. Maryland and Washington passed Extended Producer Responsibility (EPR) for packaging laws, joining five other states with similar regulations. Connecticut saw a significant increase in its beverage container redemption rate, demonstrating the impact of improved deposit return systems. Virginia, among other states, is working on a new 20-year solid waste management plan focused on circular economy principles and waste diversion strategies.
The EPA awarded $58 million in Solid Waste Infrastructure for Recycling (SWIFR) grants to improve recycling and waste management systems across the country. However, the sector faced challenges, such as the closure of rPlanet Earth, leaving only four PET reclaimers in California. The recycling of healthcare waste also remained low, with less than 5% typically recycled in North America and Europe.
As the sector looks ahead to 2026, these trends and developments will likely continue to shape the waste and recycling industries. The interplay between federal and state regulations, economic pressures, and technological advancements will be crucial in determining the sector’s trajectory. Stakeholders will need to adapt to these changes, balancing environmental responsibilities with economic realities. The coming year promises to be another period of significant transformation, with implications for operators, policymakers, and communities alike.