ALMOST half of the borough's rubbish is recycled rather than sent to landfill.
The quarterly recycling figure of 47.89 per cent for the period July to September 2012 was more than ten per cent higher than the rate recorded for the same period in 2011, and beats the target of 44 per cent within 12 months.
The figures come as compulsory recycling was introduced on Tuesday, which aims to change the habits of a minority of households that persistently refuse to put their household waste out for recycling.
Sending waste to landfill costs the council around £106 per tonne, compared to just £30 per tonne for processing recyclable materials.
Compulsory recycling is set to save the council approximately an extra £200,000 a year.
Recycling officers are scheduled to boost the first six months of the compulsory scheme by giving advice to residents living in roads that have been identified as priorities.
The majority of households are already recycling, so the focus will be on the minority who refuse to put their recyclable waste out for collection, even after a 12-week process of personal advice and reminder letters.
An £80 fine would then be considered, with a reduction for early payment.
Councillor Phil Thomas, cabinet member for highways and environmental services, said: "A huge thank-you goes to our residents for their excellent efforts with improving our recycling performance.
"We will work with households who don't recycle and will help them get into the recycling habit. The focus will be on those households where we know recycling is not happening.
"The council needs to increase recycling rates because not only does it have environmental benefits, but it saves the council money. Recycling saves us £5 million every year in landfill costs."
The majority of those who took part in a borough-wide consultation agreed that the council should take action, including potential fines for those who persistently fail to recycle.
Anyone requiring a blue box for paper and card, a green box for glass, cans and plastic or a food waste container, can find online forms and contact e-mail addresses at www.croydon.gov.uk/environment or can call the council on 020 8726 6200 and speak to someone about household collections.