Victoria needs to invest $1 billion by 2039 to transform its resource and recycling sector, according to a report from Infrastructure Victoria.
The report suggests upgrading or building new processing infrastructure for six priority materials - plastics, paper, cardboard, glass, organics, tyres and e-waste.
In conjunction the state government's 10-year action plan to transform the recycling sector, this latest report affirms a bright future for job creation in the Loddon Mallee, according to Gordon Fraser.
Mr Fraser, the Loddon Mallee resource and recovery group executive officer, said the report is one of a number of steps the state is taking towards making Victoria more sustainable.
"I would particularly draw attention to the fact we have a large amount of resource reprocessing capacity in our region that could be used to create jobs."
Mr Fraser said processing organic waste should be a priority, because it represents the biggest portion of Victoria's waste stream.
"I would expect councils and industry will look at instituting new waste and recovery strategies and invest in technology and jobs to process these materials," he said.
Bendigo Sustainability Group president Trevor Smith agrees that technology needs to be better integrated into Victoria's waste and recycling management pathway.
"Recycling in my mind is considered manufacturing," Mr Smith said.
"Across the world, sorting technology exists that allows us to invest in a product instead of a line up of bins and deposit machines.
"I think we should be able to put everything in one bin and have the technology to sort through it."
Mr Smith draws on a recent visit to Europe where he saw more sophisticated waste management systems in action.
"In Europe, there was a higher level of technology applied," he said.
"There were systems to split bottles into different types of plastic, in addition to toxic wastes and products that shouldn't go near landfill.
"Government in one way or another has been winding back on manufacturing.
"Recycling is an area where an investment in manufacturing would beneficial."
Infrastructure Victoria chief executive Michael Masson said the recommendations consist of elements that will develop a world-class recycling and recovery system in Victoria within two decades.
"We need to use less, recycle more and collect our waste smarter," he said.
"By encouraging investment in new infrastructure, we can transform to a circular economy."
Some of the report's other recommendations include the introduction of standardised bins and kerbside recycling across all councils.
Levies or bans on materials such as non-recyclable coffee cups, where viable alternatives exist was another of the report's 13 recommendations.
A copy of the report can be found at infrastructurevictoria.com.au