Finpro's Business from Russian Waste Management Sector event on 15.3.2013.

1. Waste Management in Russia
Hannu Kivelä
15.3.2013

2. Growing MSW generation
• Around 60 million metric tons of MSW is generated each year
— i.e., more than 400 kilograms per capita per year.
• The volume of MSW in Russia has been steadily increasing in
recent years.
• By 2025 MSW generation in Russia will reach 450 to 500
kilograms per capita per year.
• Around 93 percent of all MSW is sent for disposal, only 7 – 8 %
is recycled.
dd/MM/YYYY © Finpro 2

3. SMW Management in 2010 (IFC)
Source: IFC, Ministry for natural resources and the Environment of Russian Federation, Rosstat
dd/MM/YYYY © Finpro 3

4. Shift from Public to Private
• Waste management of Russia has historically been state-dominated
• Today approximately 40 percent of the market is driven by private
companies, operating mainly with MSW and in collection,
transportation and disposal into landfills.
• However, city municipalities have still a central role in deciding the
how the waste management is to be solved in the future
• Three stages of household MSW strategy:
• 2013 – 2015
• improvement of the legal framework
• 2016 – 2020
• development of environmental education
• 2021- 2030
• federal and regional programs in the field of environmental protection and
environmental safety
dd/MM/YYYY © Finpro 4

5. Obsolete Waste Management Infra
• The low percentage is due to obsolete infrastructure:
• In Russia there are only 243 waste treatment plants, 53 sorting
stations and 40 waste combustion plants
• More than 80 percent of landfill sites were established more than 20
years ago: while this varies according to location, up to 30 percent do
not meet current sanitary standards.
• The remaining capacity of landfills is estimated to be, on average,
between 30 and 35 percent: this means that by 2025 Russia is likely
to need to double its capacity to accommodate growing volumes of
waste.
• The current rate at which new capacity is created does not ensure the
ability to process projected volumes.
• This challenge is compounded by the fact that between 50 and 70
percent of Russia’s waste collection and haulage infrastructure is
obsolete.
dd/MM/YYYY © Finpro 5

6. Non-existent recovery rate
• Current waste management practices in Russia are
resource-inefficient and result in negative
environmental impacts.
• While EU Member States recover, on average, up
to 60 percent of MSW, Russia’s waste recovery
rate is nearly zero.
• If this trend continues, Russia will need to double
its MSW disposal capacity in 10 to 15 years.
•.
dd/MM/YYYY © Finpro 6

7. Comparative MSW Generationand Recovery
Rates in 2010
dd/MM/YYYY © Finpro 7

8. IFC estimate: €33.5 – 40 Billion Investments
Required by 2025
• Russia has two alternatives to to improve the situation:
• a greater focus on sustainable disposal OR adoption of
better waste recovery
• In total €33.5 – €40 billion investments required
• €18,5 billion required for general upgrade of collection and
disposal +
• Additional € 15 billion if focus on sustainable disposal
OR
• Additional € 22.5 billion if focus on better waste recovery
• recovery rate of 40–45 percent by 2025, which would
reduce demand for new landfill capacity by 20–30 %.
• €2 billion revenues annually on sale of recovered
material and energy
dd/MM/YYYY © Finpro 8

9. MSW Management Scenarios for Russia—
CAPEX Breakdowns and Outcomes
dd/MM/YYYY © Finpro 9

10. 2013 - Year of Environment in Russia
Year 2013 is declared the Year of Environmental Protection in Russia
• New Environmental legislation in preparation. Seven separate laws in
process.
• Law on Municipal and industrial waste passed the first Duma processing.
However, an alternative suggestion has been made.
• Adoption of BAT as a term in legislation
• Incentives for recycling
• Incentives for company’s environmental investments
• Federal financing for e.g.complex waste management solutions, also
municipal financing required
• Region level environmental strategies and programs to be formulated
• Promotion of PPP-companies (public-private) e.g. in waste management
• The final event of 2013 will be a gathering of environmentalists and
ecologists who will evaluate the progress made over the year and set out
plans for the future.
dd/MM/YYYY © Finpro 10

11. Comprehensive strategy of solid municipal
household waste
• The Ministry of Natural Resources and Ecology of the Russian
Federation published a draft of a comprehensive strategy of solid
municipal (household) waste in the Russian Federation and the action
plan for its implementation
• The main purpose of the Integrated Strategy is to prevent harmful effects
on human health and the environment
• Implementation of action points within a complex strategy should ensure:
• reduction of generation of MSW
• inrease in the volume of MSW used as raw material, recycled or in
energy production
• reduction in MSW sent for landfills
• drastic reduction of the negative impact of waste on the environment
and human health.
dd/MM/YYYY © Finpro 11

12. A lot of Opportunities for Technology Sales
The forecasted EUR 30 – 40 billion investments have started:
• StPetersburg seeks new methods to handle the increasing SMW
volumes, e.g.
• Collection systems
• Waste to energy
• Recovery and recycling alternatives
• Planned total investments by 2020 – EUR 1.5 billion
• Vologda Region
• New waste water treatment plant planned in Vologda city
(Ramboll, Pöyry, Plan Centre)
• New SMW waste treatment plant in Tserepovets – a joint project
with German investor
• New landfill in Tserepovets
Any many more projects under implementation and
planning phase in other cities
dd/MM/YYYY © Finpro 12

13. Thank you!
Contact:
Hannu Kivelä
Leading Consultant,
Energy, Environment and Forestry
Porkkalankatu 1, FI-00180 Helsinki
Mobile: +358 40 343 3354
hannu.kivela@finpro.fi
www.finpro.fi