Scottish councils are being given £350m to improve their recycling services and divert waste away from landfill sites.
The executive has set targets for reducing waste
The pot of money will be handed out by the Scottish Executive over the next three years.
The Scottish Environment Protection Agency welcomed the funding boost at the start of Recycle for Scotland Week.
Friends of the Earth Scotland has called for a "zero waste" policy to reduce the amount created by homes throughout Scotland.
Across Scotland, councils have been set a target to recycle and compost 25% of municipal waste by 2006.
But following an announcement by Deputy Environment and Rural Development Minister Lewis Macdonald, that figure will now be extended to 30% by 2008.
During a visit to newly upgraded recycling facilities in Aberdeen, Mr Macdonald said: "National Recycling Week is a timely reminder that we all have a part to play in improving Scotland's record on waste management.
"Already, through funding received from our Strategic Waste Fund, local authorities are working to meet our recycling and composting target of 25% by 2006.
"However, this is only the start and there is still more to do. That is why we are now setting a further target, to recycle and compost 30% of municipal waste by 2008.
"This is a challenging target, and will require continued close partnership between the Scottish Executive and local authorities."
Joanna Muse, from the Scottish Environment Protection Agency, said the targets outlined in the waste plan for Scotland were ambitious, but they were achievable.
She added: "At the start of a week focusing on raising public awareness of the advantages of reducing, reusing and recycling our waste, reinforcing our positive commitment to change is important."
Friends of the Earth Scotland claims that enough rubbish is produced daily in Scotland to fill Murrayfield stadium in Edinburgh.
£111.53m in 2005/06
£120.133m in 2006/07
£132.633m in 2007/08
Duncan McLaren, FoES chief executive, said more had to be done to tackle Scotland's "poor record on waste".
He added: "Although we know that many councils are now beginning to see improvements following the money distributed through the Strategic Waste Fund, there is still a mountain to climb.
"Of great concern is the fact that the amount of waste being collected by
councils in Scotland is continuing to rise."
FoES also called on ministers to put pressure on the UK Government to tax waste that is not recycled or composted, as well as increase landfill tax and extend it to cover other means of disposal, such as incineration.
It also urged the executive to press MPs to introduce a plastic bag tax,
similar to that in operation in Ireland, which has seen a 90% reduction in their
Scottish household waste is currently estimated to be rising by up to two per cent per annum, with the average household producing about a tonne of waste each year.