Ireland may face a maximum penalty of €46 million if it fails to meet EU targets on diverting biodegradable waste from landfill to recycling, according to consultants DKM in a paper commissioned by waste firm Greenstar.

Ireland must divert 280,000 tonnes of biodegradable waste this year. Greenstar said this target could be exceeded by more than 330,000 tonnes, avoiding fines, by recycling biodegradable material in brown bins.

The total volume of waste in Ireland fell by more than 20 per cent in 2009 and the decline continued through the first three months of this year, according to Greenstar.

The firm has noted a 15 per cent reduction in biodegradable waste at its landfills.