Food businesses will be required to divert food waste from landfill and encouraged to reduce their overall waste, as part of the ACT's Circular Economy Strategy.
A new draft strategy is designed to reduce waste across all sectors and encourage recycling of resources.
City Services Minister Chris Steel said food and organics were a priority for bringing down waste emissions.
He said a conversation with businesses would be underway, ahead of a city-wide rollout of the food organics and garden organics service.
The ACT's circular economy will also target consumer goods, emerging and problematic waste streams and the built environment.
Mr Steel said the strategy proposes to use combined ACT and NSW government procurement as a lever to mandate the use of sustainable and recycled materials in infrastructure.
"Circular building and construction methods that have low embodied emissions will be prioritised by the ACT government," he said.
Mr Steel said the availability of land for the circular economy to thrive was a key challenge for the ACT.
An innovation hub has been proposed to create jobs, plus support research and start-ups to scale-up operations that extend the life of the ACT's resources.
A hub would encourage businesses such as repair cafes, the tool library, Green Caffeen reusable cups and second-hand markets to thrive.
"We want to support industry and businesses who are taking advantage of the opportunities that come from being a sustainable city, supporting innovation and create good local jobs," Mr Steel said.
"The draft strategy outlines a new vision for building Canberra's circular economy by bringing together government, industry, business and the community to keep valuable materials in use for as long as possible."
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