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Thabo - Waste Mgt Research & Incentives - Industrial Efficiency Conference (September 2017 V1)
- 1. WASTE RESEARCH & INCENTIVE PROGRAMMES TRANSITIONING TO A LOW CARBON, RESOURCE EFFICIENT ECONOMY SEPTEMBER 2017 INDUSTRIAL EFFICIENCY CONFERENCE 2017
- 2. BUREAU FINANCIAL ALLOCATIONS “Symbiotic relationships mean creative partnerships. The earth is to be seen neither as an ecosystem to be preserved unchanged nor as a quarry to be exploited for selfish and short-range economic reasons, but as a garden to be cultivated for the development of its potentialities of the human adventure. The goal of this relationship is not the maintenance of the status quo, but the emergence of new phenomena and new values.” – René Jules Dubos (1901 – 1982)
- 3. PRESENTATION OUTLINE • Current Outlook • Our Commitments • SMME Perspectives • Sound Waste Management Practices • Incentives vs. Disincentives • Recycling Enterprises Support Programme • Conclusion
- 4. CURRENT OUTLOOK 0.62% contribution to GDP1 111 Mt of waste generated per annum 75% of waste disposed in landfill2 60,000 – 90,000 informal waste pickers ~110,000 formal jobs in chemical sector ~10% annual job growth in the private waste economy ~35,000 formal jobs in the waste economy
- 5. OUR COMMITMENTS Transition to a low carbon economy in a manner that enhances economic growth, job creation, sector competitiveness and business profitability. National Development Plan • Government’s long-term development plan outlining its vision for 2030 to eliminate poverty and reduce inequality • Most relevant objectives for the Waste sector: Economy & employment Environmental sustainability & resilience Transforming human settlements Improving education, training & innovation Sustainable Development Goals • SDG 12 clearly speaks to the ensuring sustainable consumption and production patterns. • Targets include: By 2030, achieve the sustainable management and efficient use of natural resources By 2030, halve per capita global food waste By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
- 6. OUR COMMITMENTS New Growth Path (NGP) • Government’s vision for jobs and decent work at the centre of economic policy • The main target is to create five million new jobs by 2020 • Most relevant job drivers for the Waste sectors: • Job driver 2: Targeting more labour- absorbing activities across the economy • Job driver 3: Taking advantage of new opportunities in the knowledge and green economies. Mid Term Strategic Framework • Government’s medium-term strategic plan for the 2014-19 term. • Overall goals are to stimulate GDP growth, create decent work opportunities and attract investment • Relevant outcomes for the Waste sectors: • Outcome 4: Decent employment through inclusive economic growth • Outcome 8: Sustainable human settlements & improved quality of household life
- 7. SMME PERSPECTIVES • SMMEs are extrinsically motivated to participate in or adhere to sustainable manufacturing practices. • SMMEs view sustainable practices as potentially forming part of a long-term strategy, it is something they perceive to only be attainable should their businesses enjoy greater financial stability. • Finally, SMMEs indicated that they don’t as yet see sustainable practices as a competitive advantage, except in the instances where it is imposed upon them by valued clients or customers. 1 SMMEs and the Green Economy: Muddy waters and murky futures (GIBS, JP Morgan, Feb 2017)
- 8. SOUND WASTE MANAGEMENT PRACTICES Waste Minimisation Significant opportunities exists for enterprises to contribute towards resources efficiency by reducing the environmental footprint of waste while promoting SA economy and creating jobs Input & Design Production Distribution Use How can we improve product design to save costs and minimize non- recyclable waste? How can we minimize production and processing inefficiencies to reduce costs and minimize non- recyclable waste? How can we minimize waste generated through distribution of products? How can we reduce demand for unnecessary products and extend the lifetime of products?
- 9. INCENTIVES VS. DISINCENTIVES An incentive is anything (monetary or nonmonetary) that motivates a person/organisation to undertake a particular action or choose one alternative instead of another. e.g. reduced tariffs for sorted waste. DISINCENTIVES • Environmental Taxes (plastic bag levy, waste tyre levy) • Disposal Taxes (curb waste disposal, increase recycling e.g. landfill tax) INCENTIVES • Deposit Refund Schemes (incentive to return recyclable or reusable items) • Volumetric Tariffs (pricing on unit of waste collected) • Material Input Taxes (Increase relative prices of virgin materials) • Recycled Products (Subsidies for the use of recycled content)
- 10. RECYCLING ENTERPRISE SUPPORT PROGRAMME • At the Waste Summit, the Minister, Honourable Edna Molewa said “I have called this Summit today, to ensure that for the next two days the collective gathered here deliberate on the theme ‘war on waste: driving the recycling economy in South Africa’. We must answer the following questions; What is it that as government, industry, academia, private sector and general public, we can do to accelerate the recycling economy.” • It is against this background that the Department, through the Waste Bureau is working on the establishment of recycling companies in South Africa. • The Programme is intended to take forward the resolution of the MinMEC meeting that took place on the 22nd August 2015, regarding the establishment of the two recycling companies per province leading to 18 recycling companies in total.
- 11. RESP APPROVED PROJECTS Reduce & Reuse Recycle Recover 22 Waste Collection, Sorting Baling Centres & Awareness Campaigns 1 C&D Waste Recycling Project 2 Waste Recovery Parks 2 Waste to Energy Plants 1 Laminated Glass Recycling Facility 2 Material Recovery Facilities 1 Recycled Schoolbag facility 1 OTR Processing Plant 1 Waste Composting Facility 2 Hygiene & Health Care Facilities
- 12. CONCLUSION • The DEA welcomes collaboration with the NCPC and supports Industry’s commitment to realise a low carbon, resource efficient economy. As such we encourage: Research, Development and Innovation Industry feedback regarding the impact of policy interventions Support and investment in recycling and energy recovery programmes
- 13. 13 Thabo Magomola Research & Incentive Programmes (+27 12 399 9303 | (|+27 82 611 6839 + tmagomola@environment.gov.za
Editor's Notes
- The Constitution of the Republic of South Africa The Constitution of South Africa is the supreme law of the country of South Africa. It provides the legal foundation for the existence of the republic, sets out the rights and duties of its citizens, and defines the structure of the government. The Constitution provides a framework for the administration of environmental laws. National Environmental Management Act - No. 107 of 1998 The Environmental Management Act provides for co-operative environmental governance by establishing principles for decision-making on matters affecting the environment Institutions that will promote co-operative governance and procedures for coordinating environmental functions exercised by organs of state National Waste Management Strategy - 1999 A legislative requirement of the National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008), the "Waste Act". The purpose of the NWMS is to achieve the objects of the Waste Act. Organs of state and affected persons are obliged to give effect to the NWMS. 3. Integrated Pollution and Waste Management Policy - 2000 outlines government’s new thinking in relation to pollution and waste management. 4. Polokwane Declaration - 2001 Committed South Africa to achieving 50% reduction in the volume of waste generated and 25% reduction in volumes of land-filled waste by 2012 and a zero waste plan by 2022. 5. The National Environmental Management: Waste Act, 2008 First specific environment management act (SEMA) addressing waste management Provides a holistic approach to waste management and regulates waste management in order to protect health and the environment. Puts minimum requirements on any activity relating to waste and persons dealing or trading with waste. Waste Act, which came into effect in 2009, establishes EPR as a regulatory mechanism. 6. National Policy for the Provision of Basic Refuse Removal Services to the Indigents - 2010 There are many households in the country that still have no access to waste services Some households just cannot afford the cost of waste services including refuse removal due to their poor economic situation. The policy approach to basic services since 1994 has been that government funded the capital costs of new services infrastructure The users covered operation and maintenance costs. The poorest (indigent) cannot afford the charges. As such, this arrangement would not be adequate to ensure either sustainability of services or equity of access to services. 7. National Waste Management Strategy - 2012 Section 6 (1) of the Waste Act states that ‘’The Minister must, within two years of the date on which this section takes effect, by notice in the Gazette establish a National Waste Management Strategy (NWMS) for achieving the objects of this Act’’. The Department of Environmental Affairs has since established the NWMS which was approved by the cabinet in November 2011. The NWMS builds on the previous Waste Management Strategy published in 1999. The National Waste Management Strategy (NWMS) that was developed to fulfil the requirements of Section 6 of the National Environmental Management: Waste Act, 2008 (Act 59 of 2008) requires amongst others to grow the contribution of the waste sector to the green economy. The NWMS sets a goal of 69 000 new jobs to be created in the waste sector and 2 600 additional SMMEs and cooperatives participating in waste service delivery and recycling by 2016 (DEA, 2012a). The purpose of the NWMS is to achieve the objects of the Waste Act. The NWMS contains eight goals which organs of state and affected persons are obliged to give effect to it and to have achieved all of the goals in 2016, which are: 1. Promote waste minimisation, re-use, recycling and recovery of waste. 2. Ensure the effective and efficient delivery of waste services 3. Grow the contribution of the waste sector to the green economy. 4. Ensure that people are aware of the impact of waste on their health, well-being and the environment. 5. Achieve integrated waste management planning. 6. Ensure sound budgeting and financial management for waste services. 7. Provide measures to remediate contaminated land 8. Establish effective compliance with and enforcement of the Waste Act. 8. National Environmental Management: Waste Amendment Act- 2014 Since 2009, certain implementation challenges with respect to some provisions of the NEMWA were identified by the department and stakeholders These challenges relate to; regulatory certainty, institutional implementation capacity, interpretation, and administration. The Waste Act acknowledges that waste management practices in many areas of our country are not conducive to a healthy environment and that under certain circumstances, waste is a resource and offers economic opportunities. President, Mr Jacob Zuma, during 2014, enacted the National Environmental Waste Amendment Act which is aimed at: Providing certainty Increasing institutional capacity for managing waste streams Putting mechanisms in place for proper pricing of waste. The Amendment Act provides for the establishment of the Waste Management Bureau within the department. The Bureau’s functions; will be mainly centred on the implementation, monitoring and evaluation of industry waste management plans. This will include the disbursement of funds which will be channelled towards recycling and waste minimisation.
- South Africa has a responsibility to protect the environment for present and future generations through the promotion of sustainable conservation and ecologically sustainable development and use of natural resources Despite its rich natural resources, South Africa lacks adequate measures and/or tools for effective transformation of its waste into goods and services for social and economic development Government is mandated to promote economic opportunities in the chemicals and waste sectors DST’s 10-year Waste Research, Development and Innovation Roadmap has a goal of growing the waste sector from 0.62% of GDP to 1-1.5% of GDP in the next 5 years via a number of levers: Accelerating the waste recycling economy Growing the waste-to-energy economy Increase commercialisation of the circular economy and create value from resources currently discarded as waste Foster inclusive growth through positioning of South Africa as a globally competitive producer of sustainable products
- South Africa has a responsibility to protect the environment for present and future generations through the promotion of sustainable conservation and ecologically sustainable development and use of natural resources Despite its rich natural resources, South Africa lacks adequate measures and/or tools for effective transformation of its waste into goods and services for social and economic development Government is mandated to promote economic opportunities in the chemicals and waste sectors DST’s 10-year Waste Research, Development and Innovation Roadmap has a goal of growing the waste sector from 0.62% of GDP to 1-1.5% of GDP in the next 5 years via a number of levers: Accelerating the waste recycling economy Growing the waste-to-energy economy Increase commercialisation of the circular economy and create value from resources currently discarded as waste Foster inclusive growth through positioning of South Africa as a globally competitive producer of sustainable products
- South Africa has a responsibility to protect the environment for present and future generations through the promotion of sustainable conservation and ecologically sustainable development and use of natural resources Despite its rich natural resources, South Africa lacks adequate measures and/or tools for effective transformation of its waste into goods and services for social and economic development Government is mandated to promote economic opportunities in the chemicals and waste sectors DST’s 10-year Waste Research, Development and Innovation Roadmap has a goal of growing the waste sector from 0.62% of GDP to 1-1.5% of GDP in the next 5 years via a number of levers: Accelerating the waste recycling economy Growing the waste-to-energy economy Increase commercialisation of the circular economy and create value from resources currently discarded as waste Foster inclusive growth through positioning of South Africa as a globally competitive producer of sustainable products
- South Africa has a responsibility to protect the environment for present and future generations through the promotion of sustainable conservation and ecologically sustainable development and use of natural resources Despite its rich natural resources, South Africa lacks adequate measures and/or tools for effective transformation of its waste into goods and services for social and economic development Government is mandated to promote economic opportunities in the chemicals and waste sectors DST’s 10-year Waste Research, Development and Innovation Roadmap has a goal of growing the waste sector from 0.62% of GDP to 1-1.5% of GDP in the next 5 years via a number of levers: Accelerating the waste recycling economy Growing the waste-to-energy economy Increase commercialisation of the circular economy and create value from resources currently discarded as waste Foster inclusive growth through positioning of South Africa as a globally competitive producer of sustainable products
- Material and Input Taxes - Increase relative prices of virgin materials (or materials that are difficult to recycle, or that contain toxic properties) used as inputs in production; so as to provide incentives to use recycled (or recyclable, or less toxic) materials as alternatives (applications in virgin materials; packaging; hazardous materials) Product Taxes - Levied at the point of production or final sale, in order to internalise external costs in product prices, with the aim of changing producer or consumer behaviour (reducing supply and/or demand). (applications Tyres and WEEE, fuels, motor vehicles, batteries (particularly car batteries), packaging, and non-biodegradable plastic bags. Advanced Recycling Fees - Similar to product taxes; although main aim is to raise revenue to cover costs of recycling (Used oil, oil containers and oil filters and WEEE) Deposit Refund Schemes - Deposit is paid upon purchase (thereby providing similar incentive effects as product tax) and is refunded upon return of the used product or packaging for recycling or re-use, thereby providing an incentive to return recyclable or reusable items rather than throw them away (Glass and plastic beverage containers and steel beverage cans; batteries; tyres, fluorescent light bulbs, and cars. EPR Fees- EPR fees are fees paid by producers and importers (the obligated industry) to fund EPR schemes. Their main aim is to raise revenue that can drive behavioural changes of producers (Applications Volumetric Tariffs - Puts a price on each unit of waste collected from waste generators (such as households), thereby providing an incentive for the household to reduce the amount of waste generated or put out for collection, and to seek alternatives such as recycling or re-use. May further seek to internalise external (social and environmental) costs, thereby providing further incentives to reduce waste generation. Disposal Taxes- Internalise the external costs of waste disposal into the disposal fees (e.g. landfill tipping fees), thereby increasing the cost of disposal relative to waste prevention, recycling and recovery, and in turn making the latter relatively more financially viable
- In line with the requirements of the Waste Amendment Act, this strategy contains guiding methodologies for the setting of waste management charges, aimed at funding the re-use, recycling or recovery of waste; implementation of industry waste management plans (IndWMP) for those activities that generate specific waste streams. The new regulatory framework requires that Govt, manages the collection of fees as well as the disbursements to the Product Responsibility Organisations. The of EPRs as stipulated within the strategy provides a mechanism for boosting the recycling economy and monitoring the effectiveness of the implementation of Industry Waste Management Plans. The Waste Management Bureau was created as a response to need to have dedicated entity to management an oversight over the EPR programmes in the country i.e. Tyre Plans, 3 more Industry Waste Management Plans
- In line with the requirements of the Waste Amendment Act, this strategy contains guiding methodologies for the setting of waste management charges, aimed at funding the re-use, recycling or recovery of waste; implementation of industry waste management plans (IndWMP) for those activities that generate specific waste streams. The new regulatory framework requires that Govt, manages the collection of fees as well as the disbursements to the Product Responsibility Organisations. The of EPRs as stipulated within the strategy provides a mechanism for boosting the recycling economy and monitoring the effectiveness of the implementation of Industry Waste Management Plans. The Waste Management Bureau was created as a response to need to have dedicated entity to management an oversight over the EPR programmes in the country i.e. Tyre Plans, 3 more Industry Waste Management Plans