A scheme to improve waste management has received £138m Private Finance Initiative (PFI) funding.
Milton Keynes and Northamptonshire councils will work together to divert 200,000 tonnes of biodegradable waste from landfill each year by 2020.
The partnership aims for a recycling or composting rate of 55% by that date.
The goal is 5% above national targets and environment minister Jane Kennedy has welcomed the funding step which now opens the way for detailed planning.
She said: "I can announce the formal approval of Milton Keynes Council and Northamptonshire County Council's bid for £138m PFI credits to deliver new waste management infrastructures in their area.
"This will create a real incentive for both the authorities and industry to work together to reduce waste and make better use of the waste that is produced, as well as reducing our impact on the environment."
Waste increasing
A notice to prospective bidders will be issued in the Official Journal of European Union shortly.
The climate change impacts of the proposed technologies will be assessed during the procurement process.
Northamptonshire County Council and Milton Keynes Council said last year that bringing together waste services could save £74m over 25 years.
About 160,000 new homes are expected to be built in the area over the next 20 years and the amount of waste is expected to increase from about 500,000 tonnes per year now to 700,000 tonnes per year over the same time period.
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