The committee was in Echuca this week to run a hearing as part of its inquiry into recycling and waste.
It is examining the Victorian government's waste management approach, the response to China's waste ban and solutions to the recycling and waste crisis, including reduction strategies.
And said councils like Campaspe were leading the way.
“I think metropolitan councils can learn from this,” Chair Cesar Melhem said.
“For example, local councils are providing bins where food waste and green waste are mixed together and turned into fertilisers and other goods instead of going to landfill.
“That's an excellent approach and I think councils in Melbourne should be looking closer at that."
The committee has received more than 700 submissions and has already held public hearings in Melbourne and Morwell.
Mr Melhem said the hearing provided a vital opportunity for the committee to hear issues local councils are facing and brainstorm potential solutions.
“The main issues coming out of today's hearing related to the state-wide coordination of recycling and the additional costs now imposed on residents or councils at this point of time,” he said.
“As we’re now unable to export a lot of recycled product to China, that has added an extra cost.
“So we’re looking at what support the government can provide to overcome that.”
Mr Melhem said the further separation of recyclables was a potential solution.
“For example, it’s becoming clear glass should be separated because it can contaminate other recycled goods like paper and cardboard,” he said.
“And finding a market for these end products so we have less dependence on landfill is a real concern.”
Transcripts from earlier hearings and submissions can be found on the committee’s website at parliament.vic.gov.au/epc-lc/article/4146