A recycling program has been implemented on Lipsi with the Collection at Source (CaS) system and door to door collection. Household bins are not used, instead the council distributes rubbish sacks to homes and businesses which are colour-coded so that residents can separate the different types of waste – glass, paper/cardboard, plastic/nylon, metal/aluminum, ready for collection.

Recently, the Municipality of Lipsi set up attractive recycling points on three of the beaches in order to encourage the system of separate collection.  Organic waste can also be collected from these points.

Based on the official data of the HELLENIC RECYCLING DEVELOPMENT COMPANY, Lipsi was ranked first in 2015 as having the highest recycling rate per person and for the cleanliness of recycled materials.  The Municipality was awarded a GOLD Prize at an Environmental Awards event organized by Boussias Communications.