Circular Markets Grants

By 2030, methane production from food, garden and textile waste is estimated to generate 3.1 million tonnes of CO2-e landfill emissions across NSW. The NSW Government’s Waste and Sustainable Materials Strategy 2021–2041 (WaSM) established targets to halve the amount of organic waste sent to landfill and achieve net zero emissions from organics to landfill by 2030.

The NSW Government passed legislation in 2025, mandating Food Organics and Garden Organics (FOGO) recycling, to reduce food waste and stop food and garden waste going to landfill.

Local councils will be required to provide all NSW households who receive a residual (red lid bin) waste collection service with Food Organics and Garden Organics (FOGO) waste service(s) by 1 July 2030.

The FOGO mandates are expected to divert almost 950,000 tonnes per annum (tpa) of FOGO waste from landfill. Processing of this feedstock by the NSW organics recycling industry will produce approximately 500,000 tpa of compost.

Strong and diverse end markets for the use of this additional FOGO compost will strengthen the organics circular economy in NSW. Buying back and using FOGO compost in the communities where the FOGO was generated reinforces circular economy principles and supports compost product quality.

The Circular Markets grants program builds on the lessons learnt from the Waste Less Recycle More funded Organics Market Development grants program delivered between 2013–21 and the case studies developed for the Cool Compost program.

• Create and test diverse circular economy opportunities to bring FOGO compost back into the communities where it was generated
• Identify and overcome barriers to the use of FOGO compost by councils and others within the local circular economy
• Stimulate potential new markets for FOGO compost through practical demonstration of its uses and benefits
• Increase residents’ and council teams' knowledge and awareness of FOGO end uses to support product quality.

• Projects showcase how compost made from kerbside FOGO can be brought back and used within the Local Government Area (LGA) in which it was generated.
• Council teams have increased knowledge, skills and desire to use FOGO compost within council operations and the wider LGA.
• The practical application of FOGO compost within the community has shifted to integrating FOGO compost into circular procurement.
• Residents have increased knowledge of the benefits of FOGO compost and their contribution to the circular economy opportunities.

Eligible applicants must be NSW local councils (single or group of councils) with an existing or a planned FOGO service.

A planned FOGO service is considered one where council has demonstrated intention to start a service prior to July 2030, or has an exemption if the service is anticipated to start at a later date. 

Partnership projects

Partnership projects are encouraged as they can improve the efficiency, value and economic benefits of projects. Any physical sites used in projects must be located within the LGA of the applicant/s.

For example, the council applicant/s can work with:

• resident community groups, businesses (nurseries, wineries, market gardens etc), residential developments, agriculture (local farms), local golf courses, cemeteries using sites owned or operated by the partner organization within the applicant’s LGA.
• a NSW Government agency or state-owned corporation on project sites within the applicant/s LGA – this could be a housing, transport, school infrastructure or other development within the applicant’s LGA.

The grant applicant must administer the project, including signing the Funding Deed and taking responsibility for all reporting.

An agreement must have been reached between all partners in relation to project management, roles, responsibilities and funding contributions before applying for funds. This agreement should be detailed in the grant application and can be provided in the form of a Memorandum of Understanding (MOU) signed by each partner, or a letter of commitment from each partner detailing their roles, responsibilities and commitments.

We are looking for a wide range of practical projects to demonstrate the diversity of FOGO compost use within metro and regional settings. A project should demonstrate how it:

• facilitates local circular economy opportunities to buy back and use FOGO compost in the communities where it was generated
• stimulates potential new markets for FOGO compost through practical demonstration of its uses and benefits
• supports increasing knowledge and awareness of how FOGO activities can positively or negatively impact compost product quality.

Eligible projects include council procurement processes, identification of knowledge and skill gaps and the capacity building to resolve them, or the site-specific use of custom compost blends on a variety of council and community managed sites within the LGA.

Examples of eligible projects include, but are not limited to:

• roadside regeneration with and without the application of FOGO compost to compare the impact of FOGO compost on biodiversity change and plant survival rates
• a series of workshops with all internal and external stakeholders to identify barriers and levers to the circular procurement of FOGO compost by the council. Leading to the development of a roadmap to add FOGO compost buy back clauses to future council contracts.
• an awareness campaign linking resident’s FOGO source separation to the quality of compost generated from their FOGO kerbside collection. The project is supported by the practical application of FOGO compost, generated from the council’s kerbside FOGO collection, on a community site within the LGA e.g. a local park, community garden or playground.
• a council partnership with a developer of a residential development using a FOGO compost blend for landscaping, where plant growth, water savings, fertiliser use and ongoing site maintenance requirements are tracked against the developers standard landscaping mix
• a group of neighbouring local councils conducting trials on some of their sporting ovals to develop custom compost blends along with best practice application
• a council works with local farmers (or another established industry embedded within the LGA) to establish a trial for the use of FOGO compost. A cost benefit analysis is undertaken and lessons learnt are shared across the local agricultural community.
• a council planning their FOGO service works with a neighbouring council to procure its FOGO compost and demonstrate the use of compost to council teams and residents on local parks. The council parks team develops compost blend specifications for use within council managed parks in the LGA as part of its future.

• Submit the grant application using SmartyGrants by 2pm on Tuesday 23 March 2026.
• If the project involves a physical site, the site/s must be within the LGA of the applicant or within the LGA of a partner council.
• Site/s must be identified and preliminary planning and collaboration underway with council waste managers and the site managers. The site managers may be internal council teams or external community partners.
• The size and history of each site is known e.g. previous and current use, previous and current maintenance program.
• All compost used is derived from NSW kerbside FOGO and produced by licensed NSW organics processing facilities.
• FOGO compost used in projects must be compliant with NSW EPA regulatory requirements (including composting RRO/E and AS4454). The use of custom compost blends tailored to specific sites is encouraged.
• Any FOGO compost blend specifications must be written by a suitably qualified person.
• be delivered in NSW by an eligible applicant
• be adequately resourced for the life of the proposed project, having the ability to manage and complete the project including the budgeting, reporting and acquittal requirements
• Disclose any funding from other government programs relating to this project
• be completed with all final reporting submitted by 30 June 2027.

Applications that do not satisfy these conditions will be deemed ineligible and will not be funded.

Projects that will not be funded include:

• free or subsidised FOGO compost giveaways to residents
• projects focused on home composting
• projects using outputs from FOGO/FO recycling technologies other than composting
• activities undertaken to meet planning, regulatory operating or compliance requirements
• projects funded from EPA and or other funding agencies for the same activities
• council business as usual activities.

What can be funded:

• purchase of FOGO compost used for the project
• additional blending or processing to create a site-specific FOGO compost blend or quality for the project
• site preparation costs related to the application of compost
• additional staff costs (such as salaries), that are demonstrated to be directly related to the project
• community engagement, project promotion and education activities directly related to the project
• technical expertise to support the design, delivery or outcomes of the project. For example, site preparation or soil specification requirements, procurement or contract advice
• hire or short-term leasing of equipment or vehicles for specified project tasks.

Successful applicants must use project funding solely for eligible project costs specified in the Funding Deed for the project, otherwise reimbursement to the EPA may be required.

Project costs that cannot be funded:

• capital purchases (e.g. infrastructure or equipment)
• lease or purchase of land
• additional soil testing, outside of the EPA funded soil testing program
• site remediation or rehabilitation work e.g. tree planting, land forming, drainage work
• transport costs including compost and equipment delivery costs
• educational activities that are not directly related to the project and/or the use of FOGO compost in settings within the LGA
• routine or cyclical maintenance works
• operating costs (e.g. staff costs that are not directly related to the project, electricity, water and other utilities, fuel costs)
• staff travel, and/or staff attendances at conferences
• catering costs
• insurance costs
• legal advice
• financial auditor costs such as third-party accountants providing endorsement on the project’s expenditure
• project contingency costs
• cost of preparing the grant application.

The EPA may, at its absolute discretion, update or add to the items and projects that will not be funded at any time.

Only eligible project costs, under an eligible project will be considered.

This is a competitive grant program with no guarantee that applications will be funded or funded in full.

• Applicants must be available for participation (for example through an interview or survey) in the grant program evaluation, which could occur after the project has been completed.
• For all projects involving the application of FOGO compost to a physical site within the LGA the grantee must:
  • participate in the EPA-funded soil and compost testing program (in addition to the grant funds).
  • keep a detailed site log for the duration of the project to aid interpretation of soil and plant health results
• allow use of the project as a case study and for other promotion activities including presentations to stakeholders. Project team will prepare and submit a case study with final report.
• commence the project within 3 months of signing the Funding Deed. If a project does not commence within 3 months, without justification, the EPA may revoke the grant.

Circular Markets soil testing program

Participation in the Circular Markets soil testing program is required for all projects that include the application of FOGO compost or a compost blend to a physical site.
The soil testing program will be funded by the NSW EPA and is additional to the Circular Markets grant funding allocated to a project. The soil testing will help inform development of site-specific compost blends as well as the measurement and evaluation of the impact of the compost application.

The soil testing program will be confirmed with successful applicants and may include:

• baseline soil testing from the project site
• testing of the FOGO compost blend to be applied to the site to ensure it matches any custom compost specification and
• soil testing from the project site prior to and after completion of the project.

The soil testing program will follow a standard sampling process and testing profile, but this may be tailored with additional tests depending on the specific sites and focus of the grantee’s projects.

The soil testing program will also incorporate a capacity building element for the council’s project teams. This could include capacity building related to the soil sampling design and collection processes, how to preserve and label samples, how to interpret test reports etc.

Note the testing program does not involve testing for compliance of the FOGO compost to the Compost Resource Recovery Order and Exemption 2016. These are minimum regulatory requirements for lawful land application of compost in NSW.

The FOGO compost supplier for the project should confirm compliance with regulatory requirements for any compost used in the project.

Grants of up to $50,000 excl. GST are available.

The Circular Markets grant program has a total funding allocation of $500,000.

Funding is contestable, and applications are assessed against the assessment criteria outlined in these guidelines (see the Assessment criteria section). This funding is administered in line with NSW Treasury guidelines on outcomes-based budgeting, which enables greater transparency in financial decision-making and greater accountability for the delivery of waste and circular economy outcomes. The grant applications (projects) are assessed and ranked by an independent technical review committee (TRC). Projects recommended for funding are at the discretion of the TRC, based on assessment criteria outlined in these guidelines.

50% co-contribution is required towards the cost of the project in kind or financial.

In-kind contributions can include: 

• existing resources (such as venues or equipment), promotional activities (such as social media posts), donated services (such as compost blending), staff (see next bullet point) or volunteer time from the applicant or project partners.
• For projects that include FOGO compost application at a site, the time of project team members who will be involved in the site preparation, monitoring, sampling, spreading of FOGO compost, custom blending etc may be included in the co-contribution.
• For desktop projects, the time of project team members related to procurement, contracts, requirements development may be included in the co-contribution.
• Applicants should record all their in-kind contributions in their application budget.
• Applicants can include or seek other funding to supplement their project delivery and, if so, are required to detail the funding source. Non-EPA funding can be included as the applicant’s co-contribution.
• Funding from other EPA grants or programs cannot be included as a co-contribution. However, it can be used to fund additional activities that will supplement your Circular Markets project outcomes.

GST may apply to payments made under this grant program. In addition, some grants of financial assistance may be subject to income tax in the hands of certain recipients. It is therefore recommended that you, as the applicant, seek independent legal and financial advice if uncertain about your organisation’s taxation obligations.

Organisations administering a grant (and registered for GST) are not to include GST in the application budget figures. The EPA will add 10 per cent GST to the grant payment.

Organisations administering a grant that are not registered for GST are to include in the application budget any GST that will be incurred during the life of the project.

*Dates are estimates and subject to change

Application and assessment process

Applications must be submitted to the EPA via our SmartyGrants platform.

You will receive an acknowledgment of your application after submission via SmartyGrants. If you do not receive an acknowledgment email, contact the Organics team at [email protected] to ensure your application has been received.

Summary of application and assessment process

1. Complete the online application form (with required attachments) via SmartyGrants.

2. Review of eligibility – Applications are reviewed by EPA staff to ensure they meet the eligibility criteria. Only applications that meet the eligibility criteria will proceed to the Technical Review Committee (TRC) for further assessment. Applicants that do not make it past the initial eligibility stage will be notified. Applications that are not fully completed or unsubmitted will not proceed to the TRC.

   During the eligibility check EPA staff will also check the following:

   • regulatory compliance check – applicant and partners if applicable
   • review of performance of other EPA funded grants
3. The EPA may request clarification or additional information to enable assessment of the application
4. TRC assessment –  Eligible applications will be assessed by an independent Technical Review Committee. The application is reviewed against the assessment criteria and the TRC makes its recommendation.
5. Final EPA decision –  Following the TRC’s assessment the EPA considers the recommendation and makes its final decision. Decisions by the EPA are final.
6. Applicants will be notified of the EPA’s decision via letter and successful applicants will be issued a Funding Deed.
7. Within 30 days of receiving the Funding Deed, applicant accepts the funds by executing the Funding Deed
8. Projects must commence no more than 3 months after signing of the Funding Deed or the offer may be withdrawn.

For help with SmartyGrants and applying for grants see the SmartyGrants help guide.

Successful applicants will be required to sign a performance-based Funding Deed (the Deed) with the EPA which will stipulate all funding obligations and conditions. The EPA will monitor the performance and progress of projects through agreed milestones. Funding is provided against agreed milestones and payments are dependent on the satisfactory completion of milestone requirements. 

Successful applicants will have up to 30 days from the date an offer of funding is formally notified by the EPA, to sign the Funding Deed. If the Deed is not signed within the specified period, the offer of funding may lapse.

Successful applicants will be required to comply with all conditions contained in the Funding Agreement, including, but not limited to:

• Confirm a final schedule of payment and reporting dates relative to project activities.
• Provide progress report(s) and final report in accordance with the reporting requirements outlined in the Funding Agreement.
• Submit a Statement of Expenditure with each progress report. At the final report stage, provide a Final Statement of Expenditure signed by a qualified public or chartered accountant, e.g. the applicant council’s Chief Financial Officer.
• Provide any related invoices and proof-of-payment to the EPA that correlates to the Statement of Expenditure.
• Provide written evidence from any project partners to confirm they are contributing funds or resources to the project.
• Provide a Tax Invoice to the EPA for each grant instalment, with GST added where relevant.
• Hold appropriate insurance and public liability coverage for the duration of the grant
• Demonstrate that all necessary planning, regulatory or other approvals have been granted, to ensure all project activities are completed within the designated timeframe.
• Seek prior approval from the EPA for any variation to the agreed project plan, timeframe or budget items.
• Acknowledge the support of the NSW Government in all promotional material and public statements about your project. The acknowledgement must include the appropriate NSW government or EPA logos in accordance with publishing requirements. Logos and requirements for use to be downloaded from the EPA website. Organisations must provide the EPA with a copy of all publicity material before it is published or released and must not publish or release publicity material containing the NSW Government or the NSW EPA’s logo without the EPA’s approval.
• Agree that all knowledge gained as part of the grant must be publicly available e.g. through publishing a case study or promoting the project via other avenues.
• Invite NSW Government representatives to any launch or public event associated with this project, and where they can attend, that they are acknowledged as official guests and provided an opportunity to publicly address the event.

Download the Deed template (PDF 732KB). Although the terms of the Deed are non-negotiable, minor changes may be made to:

• Special Conditions – if required
• Schedule A – approved project activities.

Schedule B is the deed change request form.

The EPA will consider minor requests for variations to your project scope, timeframe or budget when it does not involve the seeking of any additional funds. These should be submitted as soon as possible when known by you using the ‘Schedule B’ Deed Change Request Form in the Funding Deed. Significant extensions of time will only be approved under exceptional circumstances with evidenced justification. Any significant changes such as the use of the funds for any additional unproved purpose/activity would be treated as a new grant application.

Projects must include a robust process for monitoring, evaluating and reporting on outcomes, including gathering supporting evidence.

Successful applicants will be required to provide progress reports and final reports in accordance with the timelines and reporting requirements, tailored to each project and outlined in the Funding Deed. Progress reports must include details on all the activities completed in that period, evidence (e.g. consultant reports or council reports), outcomes and next steps. Photos and videos of progress should be included, where feasible. A statement of expenditure, with correlating invoices and proof of payment must be provided with each report. Grant recipients must also provide an evaluation report at project completion.

The EPA will provide templates for the progress and final reports in SmartyGrants for grantees to use.

Milestone payments:

• Milestone 1: 60% of the grant amount will be paid on execution of the Funding Deed
• Milestone 2: 20% on supplying compost blend specification (base line site soil sampling completed and test report against compost or compost blend) or equivalent for a desktop project
• Milestone 3: 20% on approval of final reporting of the project including tracking against the project outcomes and soil test results after compost blend application.

A correctly rendered tax invoice is required for the amount of each milestone payment of the grant. The invoice should include GST as a separate component if applicable.

Milestone reporting is to be submitted online via SmartyGrants. The Milestone 3 report, or parts of it, may be published on the EPA website to encourage knowledge sharing.

Grantees will have the opportunity for regular project meetings with the EPA to discuss questions, roadblocks, and new situations that may affect the project outcomes, budget, or timeline etc.

After completion of the grant program and payment of the final milestone payment, grantees may be asked to participate in a Circular Markets survey to review the program, released at the discretion of the EPA. Feedback will be used to assess the success of the program in meeting objectives and shape future program design. Informal feedback may also be sought.

Funding under this grant is awarded through a competitive application and assessment process.

The independent TRC assess applications using the criteria below. The dot points provide additional information on the types of expected information (at a minimum) for each criterion. Applicants must address all the assessment criteria. The assessment process will be overseen by probity advisor, also using the criteria set out below:

The EPA establishes an independent Technical Review Committee (TRC) for each grant program. Each TRC is made up of representatives with knowledge and experience relevant to each grant program. TRC members agree to undertake their duties within the principles of ethical conduct, integrity, objectivity and independence. They are also required to keep all matters concerning applications confidential and to declare any potential conflict of interest. The TRC membership is confidential to avoid opportunity for influence.

Applications will undergo an eligibility check before being reviewed by the grant program’s TRC using the assessment criteria (see the Assessment criteria section of guidelines). The dot points provide additional information on the types of considerations relevant to each criterion.

The grant applications (projects) are assessed and ranked by the TRC. The TRC then makes recommendations, including special conditions, to the EPA. The EPA CEO will make the final funding decision. The assessment process may be overseen by an independent probity auditor.

Successful applicants may not receive the full amount requested and the offer of funding may be subject to special conditions. The EPA may also include conditions that may not have been addressed in these guidelines, should a particular issue come to light during the assessment process. 

Decisions by the EPA are final. There is no appeal process.

The NSW EPA will publicly announce the successful grant applications. Applicants will also be notified in writing. Successful applicants must not publicly promote the outcomes of funding decisions until the NSW EPA formally announces the funding outcomes.

Applicants are required to declare any real, potential or perceived conflict of interest that they may be aware of in relation to being awarded a grant, particularly where:

• the project that is proposed will be undertaken on private land and that land is owned by a member or members (or their relatives) of the organisation applying for a grant
• members, or relatives of members, of the organisation applying for a grant are being paid as project managers (or similar) with EPA funds
• members, or relatives of members, of the organisation applying for a grant are being paid as contractors with EPA funds
• works carried out by the project could create current or future financial or other benefit for members of the organisation applying for the grant, or their relatives
• third parties used to assist in the preparation of the grant application will potentially be engaged to carry out work on the project.

Such circumstances do not exclude the project from being funded; however, they must be acknowledged as a potential conflict of interest. The TRC will assess each situation on its merits.

Applicants must certify that all the information in the application is true and correct.

Applications that include misleading or false information will not be considered for funding. If the EPA is made aware of any issues relating to misleading or false information after a grant has been awarded, the grant will be revoked and funds, plus interest, must be repaid. An assessment regarding possible fraud will also be undertaken and appropriate legal action initiated if warranted.

The EPA will use the information you supply to it to assess your project. The EPA may share this information with other NSW Government and Commonwealth Government agencies and consultancies, on a confidential basis. Some of this information may also be used for promotional purposes. Otherwise, subject to legal requirements of disclosure, the EPA will endeavour to treat sensitive personal and private information that you provide confidentially. If you require strict commercial confidentiality, you should request this in your application. However, all documents held by the EPA are subject to the Government Information (Public Access) Act 2009.

FOGO Compost – output of source separated food organics and garden organics (FOGO) kerbside collection services that has undergone composting and meets EPA regulatory requirements. 

Compost blend specification – the specific instructions detailing the required additional materials to combine with the compost and/or the additional processing the compost is required to undergo.

EPA – the New South Wales Environment Protection Authority

Compost supplier – Licensed NSW organics processing facility or a soil blender that supplies blended compost products. The compost component of a blended compost product must meet EPA regulatory requirements.

Project partners – an organisation who will work with the applicant to deliver the project objectives. A project partner’s roles and responsibilities must be defined in an MOU, letter of support or equivalent and submitted with the grant application.

Use SmartyGrants to apply for funding.

If you have any issues accessing the platform or completing any questions, please email [email protected]

Who to contact for help

All organisations interested in applying can contact the EPA Organics team to discuss potential projects and eligibility. Staff can assist with any question related to the application process.

Email: [email protected]

A qualified soil scientist, horticulturalist, landscaper, agronomist could be suitably qualified. The compost blend specification should use the EPA funded site soil test reports to inform the specification development and involve the input of your partner compost supplier/blender.

Yes, the funding for the Circular Markets grants program is specifically for the use FOGO compost or compost blends containing FOGO compost.

The grant reporting does not specify monitoring or reporting on contamination in the FOGO compost, but it can be included in reporting by the grantee if appropriate to the project.

No, all projects need to be completed by 30 June 2027 with final reports on progress and project outcomes submitted by then. We do however recognise that the timeline may be short for some projects and have requested that all grantees are available for interview for up to one year after the grant closes to report on continued progress. Additional soil testing may be conducted after the project close to inform longer term outcomes.

Yes, within 3 months of signing the Funding Deed.

No, there is currently only one round of the Circular Markets grant program scheduled.