The grant triggered a start-up donation of 587,000 from the Landfill Tax Credits Scheme, distributed by the Shanksfirst fund.
Cardiff University will host the centre, but other academic institutions across Wales will participate.
First minister Rhodri Morgan said: “I expect the centre will be able to tap into evolving European networks, especially those in relation to sustainable regions, an area in which Wales is an international leader.”
The centre is designed to allow academics to collaborate on larger waste related projects than would be possible in individual institutions.
Cardiff’s vice-chancellor David Grant said: “The ever increasing waste mountain is a barrier to sustainable development. Problems of this magnitude require a multidisciplinary approach, and this initiative will harness the enormous expertise and capability available across Wales.”
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