In 2016, in EU Member States (EU), only less than half of the biowaste produced, i.e. around 40 million tonnes, was used to produce compost and, to some extent, biogas. Most of it was still incinerated or stored together with other waste. On 14 June 2018, amendments to 6 directives on waste management were published. One of the most important changes introduced in the Waste Framework Directive is the obligation for Member States to recycle biowaste at source or selectively collect it for composting or fermentation by 31 December 2023 at the latest. The article presents the potential of biowaste and its use for the production of compost and changes in directives concerning the handling of biowaste, which will shape the directions of development of this waste management in the EU after 2020. The composting and fermentation processes of biowaste were also compared, defining their advantages and disadvantages. This information can be helpful in the selection of technologies for its processing, making decisions on the construction of new or modernization of existing installations.