The amount of potentially recyclable municipal solid waste in the world is growing every year. At the same time, the demand for energy is increasing globally. Waste-to-energy (WTE) technology has been proposed as a potential solution to this problem, whereby waste is burned to produce electricity. Although promoted as an environmentally sustainable solution, doubts persist regarding its actual eco-friendliness. This article analyses the literature and discusses the advantages and disadvantages of WTE technology in Latvia and at the general level. The focus of this article is the potential advantages of WTE technology, which encompass a decrease in landfill waste, retrieval of valuable resources, production of energy, and improving financial feasibility. Disadvantages, such as a potential increase of emissions, loss of valuable materials, breaking development of recovery technologies and practices, and neglection of circular economy plans, are also discussed.