Pacific Island Countries (PIC) are faced with the increasing issue of stockpiles of recyclable materials. Without a regular funding mechanism, it is difficult for PICs to implement a sustainable scheme to export or recyclable items. As such items are generally disposed to landfill, comprising up to 20%, or dumped on vacant land.

This Group provides a space to share resources, knowledge and lessons learned to increase capacity of stakeholders for the design, implementation, and operation of Sustainable Financing Systems.

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2 years ago
Sally Wyatt
Have any of the Pacific ADRF schemes worked through, in detail, the GST/VAT and other tax implications of fees, deposits and refunds? We in the Cook Islands would be grateful to talk with you.

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Sustainable Financing for Waste Management in the Pacific

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The two-day ENVIRO Conference on the Circular Economy presented in-depth knowledge regarding waste management. It is way too far ahead of the present situation in Timor-Leste with respect to waste management.

The two important issues that I think are most relevant to the situation in Timor-Leste are the behavioural change of the population through sustained marketing campaigns and the introduction of legislation to provide an incentive for the population to cash in on their waste, such as the introduction of the $0.10 cents return fee.

As the National Authority for Water and Sanitation, it is important to suggest the introduction of the legislation on waste management with the inclusion of the $0.10 cents, perhaps the amount maybe lower as in the case of Timor-Leste.

To champion sustainable financing solutions for our waste management issues the Chambers of Commerce of Timor-Leste should be included in the initial stage of coordination and an intergovernmental working committee should also be established to look into this matter.

Mr Felizberto Duarte
National Director of Administration and Finance
National Authority of Water and Sanitation Public Institute
Timor - Leste

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‘Can you smell that? It smells like the polluter pays, and that’s the smell I love the most,’ provoked Gayle Sloan, CEO of the Waste Management and Resource Recovery Association of Australia.

During a morning Talanoa, the Waste Management Study Tour Participants had the opportunity to have an open and candid conversation about the Container Deposit Scheme models used in Australia, and to unpack what elements could and should be used when developing their own country schemes.

‘Here’s the thing,’ Gayle explained. ‘It’s a lot of work to set up the scheme to begin with, but if you get it right, it can basically run itself. The most important thing is to paint the vision of what you’re trying to achieve. You have to capture the imagination about the value of these materials and if you can do that, everything else will begin to fall into place.’

The first place to start is with legislation and ensuring that the rules and regulations create an enabling environment for the vision each country is trying to achieve. Next is deciding what kind of system can work – whether it works on a deposit, or refund, or levy model – and then setting up the procurement and contractual arrangements to help facilitate this. Many countries spoke about the challenges they face, not the least of which is logistics, and to this end the message was clear: if producers can bring the product in, they can also take it out.

‘We have to start holding industry to account,’ continued Gayle. ‘The price of products at the point of sale is not the true price of the lifecycle of those products, and that’s what needs to change. You need to really consider the costs of your scheme and working out all the flows is key.’

The room was alive with questions and debate as the participants started to dig deep into what their schemes could look like. Under the steady hand of the PacWastePlus team, participants were guided through the key steps they need to take, including: identifying needs, stakeholders and partnerships, items to include, deposit values and returns, export markets and materials processing, the value and collection of scheme fees, the establishment of a central fund, and scheme management and governance.

It's a complicated and difficult process to begin with but one thing was very clear: these systems are not a burden, they are an opportunity. Indeed, central to everything is our perception of ‘waste’ to begin with – it is, in fact, not waste at all, but the processing of a valuable commodity that has the potential to protect the environment, boost local economies, create employment, ensure inclusivity, and bring countless benefits to society at large.

‘I’m inspired to get to work,’ commented one participant. ‘This study tour was intended to help us learn and build our capacity, and I think we have achieved that. If we work strategically, we can keep moving forward, and I’m excited to explore how I can make this system work back home and start to make a positive impact for the people in our country.’

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‘We have to think: what is the purpose of the work we’re doing?’ explains Veena Sahajwalla, Scientia Professor at the Centre for Sustainable Materials Research and Technology (SMaRT) at the University of New South Wales.

‘Not everything has to be done at a large scale, but rather, economies of purpose have to be scaled to meet the particular needs of communities or regions. No matter where you are in the world, you need to be able to design technologies and develop solutions that take the right kinds of materials, and create something that has both a purpose and a higher value. And that’s what we do.’

It was a day of innovation and creativity as the Sustainable Financing for Waste Management Study Tour participants visited the SMaRT Centre, renowned for pioneering the transformation of waste and creating a new generation of ‘green’ materials and products. Leading visionary research programs that foster innovation and promote collaboration, SMaRT is building a portfolio of new ‘recycling science’ knowledge and technologies.

So how does it work? The whole idea is to think about what kind of value-added materials can be made by using waste and end‐of‐life products as raw materials. A plastic bottle can be recycled to become another plastic bottle, but how do you convert more complex plastics, such as those found in a car or a printer, into something useful? Using their MICROfactorie technology, Veena and her team transform problematic waste materials, such as glass, textiles, solar panels, tyres, and e-waste, into materials and products that have value, including engineered green ceramics and plastic filament that can be used for 3D printing.

‘You have to be able to see waste and waste recycling as an integral and integrated part of making products,’ continues Veena. ‘We’re not thinking whether it’s too difficult to make on a small scale, we’re thinking about whether it has a purpose. Using our MICROfactorie technologies, we’re able to isolate high-value materials from waste and selectively recover them to create something new.’

After an inspiring conversation with Veena, study tour participants were shown around the research lab where they saw how circuit boards and other electronics are broken down, how 3D printers work, and the variety of innovative materials that can be developed. The whole purpose was to show how waste can be part of a supply chain and the participants were wide-eyed with wonder at the incredible technology on display and the diversity of products created.

‘Today was an eye opener,’ commented one participant. ‘This is really an example of the circular economy in action and it’s inspiring to be reminded that innovation can happen anywhere in the world. I really like the idea of focusing on economies of purpose rather than of scale. This concept could apply to us in the islands, and it forces us to think more creatively about what materials we have locally and how we could use these to create different products that have more value.’

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Today on the Sustainable Financing for Waste Management Study Tour, participants saw two extremes of waste management operations.

The first stop was to TOMRA/Cleanaway in Eastern Creek, the operators for the New South Wales Container Deposit Scheme (CDS). The operation is enormous – since opening in 2017, the facility has processed more than 7.4 billion containers, and can process up to 9 million containers every day. Participants explored the warehouse, seeing the immense sorting equipment and its network of conveyor belts in operation, as well as the half-ton bails of compacted cans and plastic bottles ready to be shipped off for recycling. In addition, participants saw the Reverse Vending machines in operation and met with the facility operators to discuss everything from dealing with legacy waste, to how to invest in education, the difference between the deposit and refund models, and securing relationships with different partners, recyclers, and markets.

‘Every country will have to have a different system that suits their particular needs,’ commented James Dorney, CEO of TOMRA/Cleanaway. ‘Technology has its space, but it’s not the only thing and we’re hoping that from this visit, you’ll be able to take away what applies to you. It’s in all of our interest to create best practice around the world, and hopefully our operation shows the enormous value in this commodity and how important it is to invest in sound recycling practices.’

At the other end of the scale, the study tour participants also visited the Liverpool Community Recycling Centre, a permanent drop-off centre for the more ‘problematic’ wastes that cannot be collected via council kerbside collection services. The facility collects e-waste, polystyrene, household and car batteries, paint, x-rays, and motor oils, among other waste. Operating through a drive-through system that is free and open to the community, the facility ensures that waste is either disposed of correctly or sent to appropriate recyclers, thus diverting dangerous waste from landfills. The facility sees between 80-300 cars per day, and processes up to 1 ton of waste per year.

‘It’s important to identify what the biggest problem is in your own community and start from there,’ comments Karl Adderley, Waste Project Officer. ‘You don’t have to do everything all at once. It’s best to start on a modular basis and expand as you go. This is good for both the operators of the facility, who need to handle the waste, and for the community, who need to be educated along the way.’

‘There’s so much to take away from today,’ commented one study tour participant. ‘The CDS scheme really shows how you can operate a recycling service while putting money back into the pockets of the people. This would definitely appeal to the islanders and would be a great incentive for improving our recycling systems.’

‘I appreciated the smaller-scale operation,’ commented another participant. ‘This kind of a scheme is more manageable for us and it’s something we could grow into. It’s been really interesting to see the diversity of ways that waste can be handled and there is a lot for us to think about when applying this back home.’

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“Participating in this study tour on sustainable financing for waste management is a truly rewarding experience. The interactions with several state regulators and site visits have enhanced my understanding of simple practical solutions that are available and can be done on a smaller scale in our islands, as a start.

A key message for me from the Circular Economy Enviro Conference was that there are no expiration dates to take a step forward but to put into consideration to start preventing, reducing, reusing, and recycling waste.

To turn the tide on waste management, we need adequate resources, innovative and sustainable solutions, and more importantly political will and commitment from our leaders.

We have to do it and we commit to do it because we want to keep Pohnpei clean and beautiful as it is”

Ms Charleen Fernandez
Administrative Specialist
Pohnpei State Environmental Protection Agency
Federated States of Micronesia

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After an early working breakfast with representatives from the Australian Department of Climate Change, Energy, the Environment and Water, the Sustainable Financing for Waste Management Study Tour participants bid farewell to Canberra. It was a spectacular drive through the rolling plains of New South Wales, the bright yellow camphor fields bursting in the morning light, and the team eventually arrived at the Albury Waste Management Centre, one of Australia’s most advanced waste disposal facilities.

The site is undoubtedly impressive. As a drive-through facility that enables residents to deliver all kinds of recyclable products and general waste, the site is impeccably organised and facilitates a tip shop, polystyrene recovery, mattress shredding, metal and paint recovery, furniture recovery, a construction and demolition sorting platform, a food and garden organics transfer station, and even an innovative project using black soldier fly larvae to address food waste.

‘As a regional facility, we process 200,000 tons of waste per year,’ explained Andrea Baldwin, Team Leader for Resource Recovery at Albury. ‘All of this waste used to go straight to the landfill, and we have the fourth largest landfill in New South Wales. For more than a decade we’ve focused on recycling and because we've been able to divert so much waste through this process, we’ve actually managed to extend the life of the landfill for an addition 20 years. It’s been a long and hard journey, but we are extremely proud of what we’ve been able to achieve.’

The study tour participants were given an expertly guided site tour to understand how the different facilities work, followed by a Talanoa with the site operators. A range of topics were discussed from technology, to legislative arrangements, financial considerations, energy production, and engaging with the local community, and the afternoon was alive with conversation and questions.

‘Today was enlightening,’ commented one participant. ‘There was just so much to take in. Maintaining a site like this requires both infrastructure and community education, and I was particularly interested to learn how they built the community outreach reach costs into their operations. At the end of the day, waste management requires a change of behaviour, and it was impressive to see how they have built up a relationship with their local community to help achieve this.’

‘This week we’ve spoken a lot about the circular economy,’ commented another participant. ‘But here we’ve actually seen what that looks like in operation, how different closed-loop systems can really feed into each other. Even though this site is different from the Container Deposit Schemes that we’ve seen, in reality, the financial model is quite similar, and it’s been incredibly useful to see how we can apply the principles of sustainable financing in different ways. There is a lot we can take back to the islands, and I’m inspired to see what we can do.’

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After three days of intense discussions and intellectual debate, the Sustainable Financing for Waste Management Study Tour participants put down their laptops, grabbed their high-visibility vests, and jumped on a bus to visit different sites around Canberra, exploring how waste management operates in the Australian Capital Territory.

The first of the site visits was to Return-It, the operators for the Container Deposit Scheme (CDS). Within this scheme, people gather their empty drink containers and return them to a collection site, where they can collect a 10 cent refund on each item, which they can either keep for themselves, or donate to the charity of their cause.

‘One of the most important elements of waste management is making it accessible,’ commented Garth Lamb, Chief Development Officer of Return-It. ‘Everyone has their different entry point, and if we want waste management to be successful, we need to meet people where they are, and give them different opportunities to engage in the scheme. That’s why we’ve created different ways for people to return their containers.’

The first stop was to the Phillip and Belconnen Depots. At the depots, people bring their containers and sort them manually, placing them in trays for aluminium cans, plastic bottles and paperboard, or trays for clear, green and brown glass bottles. The items are fed through a simple conveyor belt system to be counted, and based on the number of items, people receive their refund amount. This kind of facility is designed for people who typically collect a large amount of items at home, don’t mind sorting themselves, and who want a more personal experience of engaging with the Return-It staff. The depots uses efficient sorting technology to separate recyclable items, and prepares them for the Materials Recovery Facility.

Next up was the Reverse Vending Machine, an efficient and effective recycling technology system that allows consumers to insert their eligible containers into a standalone unit. It’s like a vending machine but backwards – instead of putting money in and getting something out, you put the recyclable item in and get money out. The machine scans the items through a bar code and if it is recyclable, accepts it for collection. This kind of facility is designed for people who don’t have many items and instead just want a quick drop service, which they can access while going about their day.

The third stop was to the express Bag, Drop and Go. Here, people place their eligible containers in durable, slightly see-through bags and bring them to the express location. They enter their account details, receive a bar-coded label which they stick on the bag, and simply drop the bag and go. The items are counted by the Return-It staff and the account credited.

All the facilities require users to be pre-registered with Return-It, and they simply enter their account details, to either receive or donate their refund amounts.

‘Today was eye-opening,’ commented one participant. ‘I really enjoyed seeing how everyone can be involved and how the different facilities cater to the different needs of people. I was also so impressed with the technology – on the one hand it is efficient and high-tech, but at the same time it’s also really easy to use. This makes it so accessible, and that’s exactly what we need.’

Participants also visited the Hume Materials Recovery Facility, the collection point for kerbside bins, where waste is collected and sorted. Recyclable items are bailed and sent off for recycling, and all other waste is sent to the landfill. Participants were able to see the inner workings of the facilities through a large observation window, and spent time in the well-designed and informative exhibition area, learning what products recycled materials can make and how it all works. The centre is an important part of community outreach, offering the general public the opportunity to learn about recycling and waste management, which is crucial for the success of the program overall.

‘I’ve learned so much today,’ commented one participant. ‘It’s incredible to see how all these systems work together and how much can really be achieved. My take away is that in order to set up a good system, you have to think about what you want out of it, and it’s really important to have all the beverage producers on board. It’s given me so much food for thought, and there is a lot I can take home.’

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Money makes the world go round and the same goes for waste management. One of the biggest challenges is ensuring sustainable financing and this was at the heart of an intense first day of the Sustainable Financing for Waste Management Study Tour.

But what does sustainable financing really mean? Most waste management follows a linear pattern – items (such as plastic bottles, aluminium cans, electronics, whitegoods, batteries, tyres, etc.) are produced by a manufacturer. A country then imports these goods, where a local shop buys them, and sells them to us. From there, those items typically end up in a landfill, the environment, or higher value items might get recycled.

This is problematic for small islands because where is that waste supposed to go? Islands are either too small to keep the waste, don’t have the technology to recycle, or are too far away from recycling facilities in other countries and cannot afford to ship waste there.

Sustainable financing tries to change this by creating a continuous flow of funding to ensure those items get recycled. This is known as an Advanced Recovery Fee and Deposit (ARFD) system and here’s how it works.

Let’s say you want to import plastic water bottles. Instead of just importing those bottles, the manufacturer is charged a small fee for the import, known as a deposit. This is usually a small amount, maybe 10c per bottle. This 10c is added to the sale price. The local shop buys the bottle at the increased price, and so do we. But, by having an ARFD system, the consumer (us) is able to return that item to a collection centre and be refunded a portion of the deposit amount, say 5c. The remaining 5c, or any unredeemed deposits, are then put into a central fund which is used to facilitate the recovery, recycling and off-shore shipping of those same bottles. In this way, the ARFD system helps to create a shared responsibility for the management of waste, with the manufacturer, the importer, and the consumer. This system can also bring benefits to entire communities. Instead of you, the consumer, collecting your 5c deposit, you could give that to a community institution, like a school or a charity group, and enable them to collect funds.

There are many different ways to set the system up, and they go by different names, but the important thing is to create a system that responds to the unique situation within each island state. Throughout the day, talanoas were held with legislators from Australia, New Zealand, Palau and Kiribati to understand what systems they have and what can be learned from their experiences.

A lot was discussed. New South Wales in Australia has the second oldest Container Deposit Scheme in the world and because they use 600 million containers every year, the scheme has not only kept 45,000 tons of beverage containers out of landfills, but has generated $60 million for local communities. Palau’s Deposit Beverage Container scheme, the oldest in the Pacific Islands, has handled more than 174 million containers and generated more than $17 million for waste management. New Zealand is in the process of setting up their scheme and shared insights into how they assessed their country’s needs, highlighting the important role that both industry and NGOs can play in developing a zero waste network.

The talanoas were rich with information, and the Study Tour participants were on top form, asking questions, sharing experiences, posing challenges, and engaging in an open and honest dialogue for the benefit of all.

It was a lot to take in but participants ended the day in high spirits and are all set for the first day of the Circular Economy Conference starting tomorrow, where we will have the opportunity to unpack these important issues and ideas even further.

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“From the first day of attendance of the Enviro Conference on Circular Economy, it was very inspiring to hear and see that big countries like Europe and Australia are doing their part in Waste Management. Especially for us SIDs and LDCs experiencing the impacts now. We are constantly looking for destinations to remove the different waste streams we have on the island, and we are very grateful for all the ongoing assistance.

A circular economy approach is very important, and in order to see the full effect of it, we have to allow every sector to be included in the process. Everyone plays a role from allowing products to come to the island, right down to reducing, reusing, and repurposing these products whether it's shipping overseas or processing in country.

For Niue, we will be opening our first Recycling Center in the next few months, and one of the areas we have looked at is installing an Op Shop within the center. This initiative will help reduce some waste streams ending up in the Landfill. As a saying we all know of that goes "one man’s waste, is another man’s treasure". We will also be looking at ways to reprocess these waste streams in country”

Mr Daniel Makaia
Technical Advisor - Waste Management
Department of Environment
Niue

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When we talk about recycling, a lot of people think about plastics, but there are so many other materials we need to consider too. One of the most pressing issues, both globally and in small islands, is electronic waste (e-waste), which is generated from broken, obsolete, and surplus electronic devices such as mobile phones, computers, fridges, and washing machines.

Did you know, for example, there are 15 billion mobile devices in the world, 2 billion computers, and 1.4 billion refrigerators? The rapidly increasing use of electronic equipment has resulted in the increase of e-waste too – in 2019, there were 53.6 million metric tons (Mt) and of this, only 17% was properly collected and recycled. Global e-waste is expected to surge to 74 Mt by 2030.

E-waste contains a range of hazardous materials including heavy metals, flame retardants, and other toxic substances. When incorrectly managed (like just leaving them in a landfill), e-waste will eventually release these toxic substances and contaminate the environment. It is estimated, for example, that 50 tons of mercury are contained in undocumented flows of e-waste annually.

E-waste management is an emerging issue in the Pacific and there are e-waste stockpiles in many countries due to the lack of recycling and disposal options available. Even though electrical and electronic items contain recoverable and valuable components, such as copper, steel and gold, efforts to effectively manage e-waste are often faced with economical, logistical, and technical challenges. There are also legislative challenges – only 78 countries worldwide have adopted a national e-waste policy, legislation or regulation, and none of them are in the Pacific.

It was these discussions that kicked off the third day of the Sustainable Financing for Waste Management Study Tour as participants attended a working breakfast to learn about the Australia New Zealand Recycling Platform to manage e-waste. In particular, participants investigated the ‘mobile e-waste factory’ – a series of 20ft containers with all the equipment necessary to manage and separate e-waste.

‘This discussion was fascinating,’ commented one delegate. ‘The idea of having a mobile e-waste factory is a great. It is simple but so effective. Something like this could really have an impact on small islands – not only is it functional and addresses our growing problem of e-waste, but it also creates employment and builds capacity. It is definitely something we want to start looking at.’

But e-waste wasn’t the only thing on the agenda. Study Tour participants also attended the final day of the Enviro Conference 2022 to continue their exploration of the circular economy. Again a range of topics covered, from how waste reduction can help achieve the 1.5C climate goal, financing the circular economy, recycling of food waste plastics, how container deposit systems contribute to creating a circular economy, and regenerating nature through the circular economy.

‘There’s just been so much information to take in,’ said one delegate. ‘I was particularly interested in finding out how we can apply a lot of these things in our own context – Australia is so far advanced and we have a long journey to get where we need to be. But the takeaway is clear: start small, use the container return system to ensure sustainable financing, get the community involved, and use technology that we’re already familiar with. It’s given us a lot to think about and there’s so much that I can take back with me.’

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