Mayor Ken Livingstone is to give nearly £25m to help improve recycling facilities.
Londoners produce enough rubbish to fill Canary Wharf every 10 days
He hopes to reduce the 3.4m metric tons of waste Londoners produce each year.
London recycles 9% of its waste but will have to increase its level to 25% by 2005, if it is to meet government targets.
Although about half of London's residents have doorstep collections, 50% of them do not know the service exists, a report by the mayor's office has found.
And while most people are familiar with the idea of recycling newspapers and wine bottles, they do not realise they could recycle more.
Mr Livingstone said: "This campaign is essential to the future of all Londoners, and it is important that Londoners do recycle more.
London's households produce enough waste to fill an Olympic swimming pool every hour
They produce enough rubbish to fill Canary Wharf tower every 10 days
The largest landfill site in greater London will be full in less than five years
"That includes recycling glass jars as well as bottles, food cans in addition to drink cans, unwanted clothes and linen, and to compost garden and kitchen waste.
"These are all simple actions that people can take which will make a big difference to improving the amount of waste London produces, and ultimately the environment we live in."
The London Recycling Fund has been paid for by the mayor, the Association of London Government and London Waste Action.
It will distribute a total of £24.9m to London boroughs, to pay for projects to improve services and make recycling easier.
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