Waste may be used to extract its energy content if it is not prevented or recycled. To boost energy recovery, reduce pollution, and increase circular economy, the European Union (EU) has created a waste-to-energy plan. By reducing the amount of waste, especially biodegradable waste, disposed of in landfills, the EU Landfill Directive (1999/31 EC) promotes more environmentally sustainable waste management options. To meet the Directive's goals, EU member states are implementing mechanical-biological treatment processes for urban solid waste in order to generate biogas, like bio-methane, and waste-related fuels including refuse derived fuel (RDF) and solid recovered fuel (SRF) (SRF). Simultaneously, the EU is oil-dependent, since its supplies are insufficient to meet rising energy demands, and fossil fuels must be imported in large quantities. Municipal solid waste is becoming more prevalent, and it has a non-negligible lower calorific benefit that can be seen as a power source, based on previous experience with waste-to-energy plants. The findings highlight the role of waste-to-energy facilities in meeting a portion of the EU's energy needs and contributing to the achievement of sustainable energy output targets. The use of RDF, SRF, and biogas as fuels in the EU power sector is supported by existing and ongoing research on co-combustion and co-gasification with brown coal and anaerobic digestion. In accordance with the Energy Union Strategy and the Paris Agreement, waste-to-energy will maximize the circular economy's contribution to decarbonization.