Erewash Labour councillor Howard Griffiths has called on a government committee to hold an inquiry into the site management of wood recycling plants.
The move comes against the background of a fire at a Stanton-By-Dale wood recycling plant which burned for two months late last year.
Attempts to put out the fire resulted in contaminated water running into the Erewash Canal and killing thousands of fish.
In his letter to MP Anne McIntosh, committee chairman of the select committee for Environment, Food and Rural Affairs, Cllr Griffiths has proposed a regulatory system capable of being rolled out nationwide.
He said: “In 2012 alone there were nearly 50 serious fires at recycling sites across England, according to available research.
“My concern is about the immediate and long-term management of such sites and the cost to the public in both health and financial terms if things go wrong.”
Cllr Griffiths said the recent Lows Lane fire brought incalculable environmental damage to Erewash Canal.
He added: “The canal is now being re-stocked with fish, but as yet there has been no estimate of the medium to long-term environmental damage.
“We owe it to the environment and the public to make the changes and stop these unnecessary disasters.”