While it welcomed the strategy as a major step forward for recycling in the UK, it said that overall targets were not ambitious enough.
Campaigners were pleased that a key element of the strategy was to stimulate investment in collection, recycling and recovery infrastructure, and markets for recovered materials that will maximise the value of materials.
CRR chairman Mal Williams said: Appropriate infrastructure investment is the key to whether the policies outlined in this document will have a lasting impact.
We would hope that the use of fiscal incentives such as PFIs and enhanced capital allowances is not restricted purely to energy recovery but that similar options are also available for increasing the value of recyclate collected.
In parallel with the CRRs own message, the strategy also recognised that the benefits of recycling are higher where recovered materials are high quality.
Williams said: Fiscal incentives to promote quality collection will quickly pay dividends for reinvestment in infrastructure development.
However, the CRR was disappointed that the overall target to recycle 50% of domestic waste by 2020 was not higher and said that some local authorities are already exceeding this. Higher recycling and composting targets are achievable but only with clearer guidance on quality, it added.
One example given was the strategys approach to glass, which acknowledges the significant benefits of closed loop recycling over glass going to road aggregate. But it makes no proposals on what actions should be taken to achieve this.
When asked about the Governments review of performance measures Williams said: "The development of new performance indicators that take into account quality and carbon impacts is vitally important, not only for the environment but also for the UK reprocessing industry as a whole."
CRR welcomed the recognition given to the community recycling sector, saying it prioritises source separated collection systems because it relies on gaining the best price.