MUMBAI, April 15 -- As landfill capacity tightens in major cities and energy security concerns rise, investors are beginning to revisit a sector long avoided for its execution risks. Waste-to-energy in India is emerging as a policy-supported investment theme, moving from a neglected infrastructure niche, but it remains early, illiquid and operationally constrained. The shift is being reinforced by new regulatory signals. The newly notified Solid Waste Management (SWM) Rules, 2026 are expected to improve waste segregation and bring greater predictability to project pipelines for companies such as Antony Waste Handling Cell, prompting domestic and global investors to take a fresh look at the sector. Globally, the waste-to-energy market, valued at $37.29 billion in 2025, is projected to grow to $51.68 billion by 2034 at a compounded annual growth rate (CAGR) of 3.62%, according to a March 2026 report by Fortune Business Research Insights. Asia-Pacific accounted for a 48.24% share in 2025, led by activity in India, China and Japan, the report added. In India, the waste-to-energy market was valued at $1.56 billion in 2025 and is expected to reach $1.97 billion by 2034, growing at a CAGR of 2.55% from 2026 to 2034, according to consulting firm IMARC Group. Multiple forces are converging to draw attention to waste-to-energy, a sub-sector within renewables. First, regulation is beginning to fix long-standing bottlenecks. The SWM Rules, 2026, along with updated Central Electricity Authority (CEA) guidelines, are expected to improve feedstock quality and provide greater visibility on power purchase agreements-two areas that have historically constrained project viability. According to Guillaume Dourdin, chief executive and managing director of Indian arm of French waste management major Veolia, these changes are addressing persistent gaps around waste segregation and revenue predictability. Second, project economics are improving. Vaibhav Garg, director, Infrastructure & Real Assets Investment Banking at Avendus Capital, said investor appetite has picked up over the past year, supported by regulatory momentum, net-zero commitments and volatility in global fuel and gas prices. "We are seeing a spike in investor appetite owing to a firmer regulatory push, stronger net-zero and circular economy initiatives by C&I (commercial and industrial) customers and global circumstances affecting fuel and natural gas prices (driving domestic biogas production)," said Garg. He added that across the sector, equity internal rates of return are typically in the high-teens, depending on project risks and dynamics. Third, demand-side pressures are becoming harder to ignore. With landfill capacity in major cities nearing exhaustion, waste-to-energy is increasingly being seen as necessary infrastructure. The fact that private equity investors are actively considering the sector marks a shift from a few years ago, when they largely avoided it, pointed out Dourdin of Veolia. The company is in talks with investors to explore entry into this segment, he said....