The role of Business in sustainable waste management Submission to Green Economy Summit May 2010

Introduction BUSA is engaged with government in implementation of the Waste ActBUSA is engaged with government in implementation of the Waste Act Waste Act provides an opportunity for a more sustainable approach to waste managementWaste Act provides an opportunity for a more sustainable approach to waste management Answers to questions in Summit documentAnswers to questions in Summit document Focus on manufacturingFocus on manufacturing

What is green waste management? All waste management is “green” in that it contributes to sustainable developmentAll waste management is “green” in that it contributes to sustainable development Green waste management should therefore support innovation, entrepreneurship, competitiveness across all sectorsGreen waste management should therefore support innovation, entrepreneurship, competitiveness across all sectors Focus on improvements in waste management that are economically efficiency and environmentally effectiveFocus on improvements in waste management that are economically efficiency and environmentally effective

Effect on economy Key issue is that it is business imperative to be efficientKey issue is that it is business imperative to be efficient All resources should be used efficientlyAll resources should be used efficiently Failure to be efficient leads to company failureFailure to be efficient leads to company failure All waste management interventions will contribute to sustainable development but some may do more than others eg minimisation vs landfillingAll waste management interventions will contribute to sustainable development but some may do more than others eg minimisation vs landfilling

Raw material management Maximise utilisation of raw materialMaximise utilisation of raw material –Internal recycling –By products used by others –Industrial waste to cement kilns –Metal slag in road building What government intervention promotes this?What government intervention promotes this? –Remove hurdles –Do no intervene in working private sector activity

Transition Implies movement from non green to greenImplies movement from non green to green Business essentially on a continuum of less green to more greenBusiness essentially on a continuum of less green to more green No waste management to Zero wasteNo waste management to Zero waste No jobs to no jobs?No jobs to no jobs?

Institutional approach Not a good question: no one size fits allNot a good question: no one size fits all Individual responsibilityIndividual responsibility Extended producer responsibility applies only to post consumer wasteExtended producer responsibility applies only to post consumer waste What is the responsibility of the consumer?What is the responsibility of the consumer? What is the responsibility of business?What is the responsibility of business? –Packaging design –Composition

Investment in green waste management What is green investment?What is green investment? –Incineration? –Landfilling? –Hazardous waste in cement kilns? –Composting? –Recycling? Investment follows market demandInvestment follows market demand What does investor need?What does investor need? –Return on investment

Upscaling? Examples of success:Examples of success: –Energy from landfills? –Burying medical waste in brick yard? Hurdles?Hurdles? –Red tape –Cost of doing business –Lack of access to capital

Financing models Most successful:Most successful: –commercially viable ( market demand) –payment by users Where users cannot payWhere users cannot pay –Government subsidy?

Factors impacting on growth of sector Sector dominated by public sectorSector dominated by public sector Not commercially drivenNot commercially driven Often cinderella serviceOften cinderella service Legislation not enforcedLegislation not enforced Consider impact of Waste ActConsider impact of Waste Act Private sector success not supported by governmentPrivate sector success not supported by government

Enabling policy environment Allow private sector to innovateAllow private sector to innovate Do not regulate every aspectDo not regulate every aspect Only regulate outcomeOnly regulate outcome Do not intervene where system is workingDo not intervene where system is working Do not seek to raise government revenue thru leviesDo not seek to raise government revenue thru levies Improve efficiency of legislationImprove efficiency of legislation –examples