The Government plans to divert 80 per cent of all national biodegradable waste from landfill to either recycling, composting or incineration over the next 10 years.
The target is part of the National Strategy on Biodegradable Wastepublished today by Minister for the Environment Dick Roche.
The strategy found that almost three-quarters of all municipal waste generated in Ireland is biodegradable but that more than four-fifths of this is being disposed of in landfills.
"Landfill has always been our first reaction to dealing with biodegradable municipal waste. Now it must become our last resort," Mr Roche said at the announcement of the strategy.
The 80 per cent target will mean moving from 630,000 tonnes of waste currently diverted from landfill to 1.8 million tonnes by 2016. As part of this a target of incinerating 20 per cent of biodegradable waste by 2016 is proposed.
"If we want to set the standards in EU we have to look at all the options," the minister said. Minster Roche also said there were "real opportunities" for businesses in recycling and composting, adding "there's brass in muck".
A market development group is to be set up later this that will develop a standard for compost produced from biodegradable municipal waste.
The Government will also introduce a national waste prevention target for the first time, starting at 3 per cent per annum and rising to 6 per cent by 2016.
The Irish Waste Management Association (IWMA) gave a "cautious welcome" to the strategy.
IWMA director Erik O'Donovan said: "While this new strategy is welcome, its success depends on whether it actually enables the waste management sector to provide much needed waste infrastructure and services for customers."