Digital Waste Management
Digital Waste Management
Digital Waste Management
September 2020
Authors:
ETC/WMGE consortium partners: Flemish Institute for Technological Research (VITO), CENIA, Collaborating
Centre on Sustainable Consumption and Production (CSCP), Research Institute on Sustainable Economic
Growth of National Research Council (IRCrES), The Public Waste Agency of Flanders (OVAM), Sustainability,
Environmental Economics and Dynamic Studies (SEEDS), VTT Technical Research Centre of Finland, Banson
Eionet Report
Communications Ireland -(BCI),
ETC/WMGE 2020/4
The Wuppertal Institute for Climate, Environment, Energy (WI), Slovak
Environment Agency (SEA)
Cover design: European Environment Agency
Cover photo © istockphoto, credits AlexLMX, reference 1191750758
Layout: Evelien Dils (ETC/WMGE)
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The contents of this publication do not necessarily reflect the official opinions of the European Commission or other institutions
of the European Union. Neither the European Environment Agency, the European Topic Centre on Waste and Materials in a Green
Economy nor any person or company acting on behalf of the Agency or the Topic Centre is responsible for the use that may be
made of the information contained in this report.
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© European Topic Centre Waste and Materials in a Green Economy 2020
Reproduction is authorised provided the source is acknowledged.
This report analyses the status quo, chances and risks resulting from the digital transformation of the
waste management sector. It shows that the waste management sector is in an early phase in this
development. The chances as well as the impact of its digital transformation are still emerging and can still
be shaped. The report wants to contribute to an improved understanding and management of this process.
To this avail, it studies the relevant digital technologies in the sector, including present and future
applications and the resulting potential benefits. It provides an understanding of the wider landscape that
the digitalisation process is set into, and therein highlights the drivers and inhibitors that guide this
development. Attention is also given to the external effects created by the digital transformation of the
waste management sector in the economic, environmental and social realms. Moreover, hardly any sector
is as closely linked to the emergence of a circular economy as waste management. Hence, the report also
discusses how digital technologies are necessary and indeed indispensable to the creation of the circular
economy as it is envisioned for example in the European Green Deal and the Circular Economy Action Plan.
The report is structured as follows: chapter 2 provides the required background and understanding on
waste management, waste prevention and digitalisation as the central items of its investigation. In chapter
3 the forces that promote and hinder the digitalisation of the waste management sector are presented.
The identification of the drivers and inhibitors shows where opportunities and necessities for digital
technologies exist and which barriers may need to be overcome for their application. Chapter 4 provides
insights into diverse digital technologies and how they are applied in the waste management sector. These
technologies are illustrated by standardised profiles of current applications. How the waste management
sector can profit from these technologies is shown in chapter 5, while the sixth chapter discusses existing
and potential external effects. In chapter 7 the previous findings are put into relation with the emergence
of the circular economy, specifically with regard to the novel EU’s strategies for this field. Moreover, the
chapter discusses why the establishment of a circular economy will inevitably require the use of digital
technologies and how these can be applied in the overarching scheme and the different stages of the
circular economy. Chapter 8 provides the conclusions for this study. It specifically addresses needs for
further research and implications for policy makers. The key messages of this reported are summarized
and presented in chapter 9.
2.1 Digitalisation
European societies and economies have been experiencing a radical digital transformation, fostered by
'digitalisation' and the speeding up of many kinds of interaction through the increasing number of
connected devices and data flows (Negreiro, Tambiama - European Parliamentary Research Service, 2019)
According to the OECD and today widely accepted, this digital transformation can “spur innovation and
productivity growth across many activities, transform public services, and improve wellbeing as
information, knowledge and data become more widely available” (Going Digital (GD) Horizontal Project,
2017). The World Economic Forum estimates that the combined global value of digital transformation to
society and industry will exceed US$100 trillion by 2025, the European Parliamentary Research Service
identified that an efficiently functioning digital single market could contribute €415 billion per year to EU
economy for the period 2014-2019 and create hundreds of thousands of new jobs. Due to this enormous
growth potential for EU business and society, fostering digital transformation is higher than ever on the
EU’s political agenda (Digital Europe Programme, 2019). It is indeed considered by the EC, that „EU
businesses are not taking full advantage of these advanced technologies or the innovative business models
offered by the collaborative economy” and that „the state of the digitisation of industry varies across
sectors, particularly between high-tech and more traditional areas, and also between EU countries and
regions“ (European Commission, 2017). This variation across countries for the waste, water and sewage
sector is illustrated in Figure 2.1. It depicts the digital maturity1 of some EU countries with regard to a
number of selected dimensions shown on the horizontal axis.
1
According to OECD, 2019b: “The digital transformation is a multifaceted and fast-moving phenomenon that has
significant impacts, including on the business processes and models of firms. As a result, the pace of technology
uptake will depend, among other factors, on the type of sector in which a given firm operates. While no single
indicator is able to reflect the pace of technology development and diffusion, combining indicators can provide
insights into how different sectors are positioned in terms of technology adoption. Industries can then be
classified into quartiles from most to least digital intensive which allows cross-country comparisons across a
number of dimensions by digital intensity of sectors.”
In order to provide an overview of the current implementation of digital technologies within the waste
sector, it is first essential to define and dissociate the notions of waste management and waste prevention.
Waste management is defined as “the discipline associated with control of generation, storage, collection,
transport or transfer, processing and disposal of waste materials in a way that best addresses the range of
public health, conservation, economic, aesthetic, engineering, and other environmental considerations.
Its scope includes planning, administrative, financial, engineering, and legal functions” (European
Parliament, 2015; ISWA, 2011). Directive 2008/98/EC sets the basic concepts and definitions related to
waste management, such as definitions of waste, recycling and recovery. The directive defines when waste
ceases to be waste and becomes a secondary raw material (so called end-of-waste criteria), and how to
distinguish between waste and by-products.
Waste prevention is defined as “measures taken before a substance, material or product has become
waste, and that reduce:
a) the quantity of waste, including through the reuse of products or the extension of the life span of
products;
b) the adverse impacts of the generated waste on the environment and human health; or
c) the content of harmful substances in materials and products” (Directive, E. C., 2008).
Figure 2.2: Waste hierarchy with the most ecological options at the top. Adopted from EEA report
The waste hierarchy has been governing waste policy in Europe since the introduction of the Waste
Framework Directive in 2006. The introduction of the waste hierarchy shifted waste management from
processing large volumes of waste towards the creation of value. This led to a shift in focus from large
volume, low value materials to low volume, high value materials such as copper and gold. They appear in
electronic waste or used cars, which require thorough processing in order to extract the metals. Waste
treatment activities became more complex and capital intensive. This brought a need for efficiency that
resulted in the continuing search for new technologies. At the same time, this resulted in a tension
between waste regulation and market drivers for material recovery and recycling. Waste was no longer
processed close to the source, but rather at the place of higher market price, lower cost or less stringent
environmental legislation.
At present the waste management sector experiences a strong development towards a circular economy.
It is no longer motivated by the value of, for example, recycling in itself, the driver is increasingly becoming
the constraints on materials. Several resources like chrome, cobalt, fluoride or rare earth elements are
scarce. If their deposits are located in countries beyond the European sphere of influence or will be
depleted in the future, it is of strategic importance to be able to recover these resources from the products
in which they have been used. Our economy is in need of these and other critical materials, and these will
be harder to purchase or more expensive to get in the future. This drives a new policy idea, which not only
pursues the goal of how we can use more recycled materials, but also looks at the use phase of materials
Eionet Report - ETC/WMGE 2020/4 5
and products. It asks the question how we can increase the lifetime of products and keep materials at a
high value throughout their life cycle.
In a circular economy, the distinction between raw materials, products and waste becomes increasingly
unclear. Material management is part of the product value chain and producers remain responsible for
the product and material that they place on the market. In leasing models, producers even keep the
ownership of the product and provide only a service to the customer. This could have fundamental effects
on the waste sector, and existing players need to redefine their role in this complex system of material
management. This again drives the integration of innovative technologies that can be supplied through
digitalisation. This development will be intensively analysed in the following chapters.
Taking a European perspective, it is important to understand that countries are on different levels
regarding their advancement in waste management in general (compare ), making one driver applicable
for some countries while it does not apply to others (European Environment Agency, 2019b). The graphs
show that many countries still have a long way to go to make their waste management conform to EU
targets - or to a higher standard for non-EU countries. This indicates that many more and specifically
regulatory measures will be needed to create a more sustainable and circular waste management. This
working paper illustrates how digitalisation can be a part of that.
Figure 3.1: Heterogeneous situation in waste management illustrated by different progress on waste management goals
Before looking at specific digital technologies currently applied in waste management in chapter 4, it is
important to understand the underlying forces that have so far promoted or inhibited the digitalisation of
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waste management. Such drivers and inhibitors were identified in earlier research by the researchers of
this study, especially for Germany (Berg et al., forthcoming). However, based on our research and expert
interviews conducted within the framework of this study we also know that many of them account for
Europe in general, although potentially to different degrees in different countries depending on the
respective state’s advancement in digitalisation and waste management. The work also indicated that
privately owned companies may be more advanced than state owned ones.
3.1 Drivers
Driving forces can take the form of opportunities, where the application of digital technologies directly
improves a given context or process, or challenges, where current negative developments can be
countered or alleviated. Most of these drivers are not uniformly distributed, instead they act differently in
different regions according to their unique characteristics such as population, economic strength, etc.
Drivers identified in this regard are urbanisation, demographic change, skill shortages, novel legislation,
cost pressures, expectations from citizens and customers, and new business models, which are described
in more detail below (for both drivers and inhibitors cf. Berg et al., forthcoming).
● Cost Pressure – Competition among commercial waste companies and money allocation for the
public waste sector, respectively, leads to cost pressure. This can be counteracted by increased
efficiency through digital technologies. For the commercial market, the shift from labour to capital
is an important factor as well, that can act as a driving force for digitalisation.
● Business Models - In the process of digitalisation, new digital business models emerge, often
invented by new competing players. These will force established players to follow, and lead to
more applied digital tools. While the waste sector is less affected, since waste as such is not easily
virtualised, still some aspects of the business see an impact. Especially trading on virtual platforms
is an emerging point in place.
● Customer Expectations - In the course of digitalisation, many customers are used to having near
real time information on status of orders or to be able to monitor their utilities. These expectations
presumably apply to the waste sector as well and can only be met by digital solutions such as
tracing and tracking or telematics 2 interlinked with each other. Real time insights into the
provision of certain services, like waste collection, already exist in some municipalities.
● Pull towards Circular Economy - Current visions for a shift from the linear waste model to a circular
economy require new innovations, including many digital ones. These range from digitally
advanced maintenance to sorting enabled by artificial intelligence. This shift is backed by
international and EU politics.
● Climate Crisis - The pledge to reduce greenhouse gas emissions implies landfilling to be stopped
(and the related methane emissions), and instead preferably prevent and recycle waste or
incinerate where inevitable.
● Extended Producer Responsibility (EPR) - EPR systems have proven their value in the current
materials management policy context. Those EPR schemes will be applied to many more products
2
The term telematics is formed by the words telecommunication and informatics. Telematics focuses on
controlling remote objects by transmitting data via telecommunication technology and enables monitoring,
analysis and optimisation, which leads to many possible applications e.g. in vehicle tracking and fleet
management.
3.2 Inhibitors
While there are many factors favouring and driving digitalisation, there are others that slow down its speed
or prevent the application of digital tools due to certain problems. It is important to also understand these
forces as they influence the effectiveness of digital technologies and the chances of their application.
● Digital Literacy - Skilled workers with digital abilities are necessary to implement and maintain the
digital tools. However, there is high demand for such employees in the whole labour market
currently, and therefore competition is intense for these skills on the labour market. It is especially
hard for the public sector with rather small and fixed wages to compete for these people.
Subcontracting or outsourcing these tasks might be a possible way to deal with this problem, yet
affecting the cost structure. In general, it can be said that especially in a quick changing digital
world, training of personnel will play an important role. Moreover, a change towards the use of
digital technologies can imply a change in workforce structure. Unskilled or less educated staff in
collection and sorting could be replaced by fewer but higher skilled technology experts.
● Costs - Digital solutions often need high upfront investment and will only pay off over the years.
Especially with functioning technologies still in place, this will lead to a slower change in
technology, especially on the side of public actors.
● Security - Waste management as a critical infrastructure must rely on operational and secure soft-
and hardware for its main tasks. Security of IT Systems is therefore critical, as these infrastructure
systems are high priority targets for foreign offensive IT-warfare operations or other groups and
people. Therefore, software must be well designed and thoroughly checked. These circumstances
lead to longer development times and higher development cost.
● Digital Ecosystem - For many of the new digital solutions, to work effectively, an existing digital
ecosystem is required, as most of these solutions cannot be designed stand-alone but rely on a
balanced system of legal frameworks, broadband access and mobile network coverage, standards
for data exchange, interfaces and public digital literacy. In earlier research we found that
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specifically a lack of interfaces between different software systems and applications within
organisations and between steps in the production and waste management chain is a major
inhibitor in this regard (Berg et al., forthcoming).
Figure 3.2 summarizes the drivers and inhibitors described in the preceding chapter. The next chapter
gives an overview about key digital technologies and their current application in waste management.
Figure 3.2: Drivers and inhibitors for the digitalisation of waste management, with drivers being represented by opportunities and
challenges
opportuni es
• extended producer
responsibility
• pull towards circular
economy
Digitalisa on of
waste management
drivers
inhibitors
• customer expecta ons
• increasing waste
amounts • lack of digital literacy
• cost pressure • investment costs
• climate crisis • security issues
• urbanisa on • missing digital
• business models ecosystem
With the first semiconducting transistors, a development began that has seen a steady rising trend up until
now and is not expected to stop soon – digitalisation. In its early days the technology was used for
mathematics, to compute numbers. The connection to sensors made it possible to collect larger amounts
of data and laid the foundation for digital process automation and control engineering, which has
transformed most of the manufacturing industry. At the same time, networks have been evolving, starting
from local networks connecting computers by cables to eventually result in the internet with billions of
wireless devices connected today. Some indicators for this development are plotted in Figure 4.1, where
the development of computation power and data storage costs is shown for the last decades.
Source: adapted from OECD Employment outlook,OECD – Organisation for Economic Cooperation and Development, 2019a
Thanks to the trend of miniaturisation and the ongoing cost reduction, digital technology is applied
everywhere: worn on the wrist as a smart watch, tracking animal movements all over the world, or
travelling to the borders of our solar system as satellites.
Current important technological trends are robotics, the internet of things, cloud computing, artificial
intelligence and data analytics. Because of their significance, also in the field of waste management, they
are presented in more detail in the sections below.
Another important technological development of our time is the field of e-commerce and the digitalisation
of trade. The shift from retail to online businesses has had profound impacts on various industries,
changed business models, and has made data an important asset. This development has gone so far that
the highest capitalisation today is in digital companies (Finanzen100, 2020). At the same time, the area of
finance has seen a similar change. Stock trade today is governed by algorithms and computers competing
against each other in high-speed trading. The development of Bitcoin in the last years has shown that
digital, independent currencies can be implemented. E-commerce already has a profound impact on waste
streams and waste management, for example, due to high numbers of returned deliveries which are being
Another important trend is the automated analysis and evaluation of data in respect to surveillance
technology and targeted advertisement. The People's Republic of China has installed around 200 million
surveillance cameras in 2018 and is working hard to use these data for law enforcement (Paul Mozur -
New York Times, 2018). The microphones, cameras and location sensors built into smartphones and smart-
home appliances all over the world are not under steady surveillance, but can be easily accessed by
intelligence services (Deutscher Bundestag, 2017). Surveillance also plays a role in waste management
when sensors are used to monitor containers for level of filling and functional status. Also, behaviour
towards waste can be measured and analysed, for example, the sorting behaviour of households or
littering in public spaces.
The importance of digital technologies in personal and business life has caused steadily rising demands for
digital security, another very important field of digital technologies. Since cybercrimes can be easily
committed without physically being at the site, the barrier is low to attack promising targets. Thus, the
development of cryptography methods has seen major advancements. The source of vulnerability is
commonly a poor implementation into software or the false use of this software.
The following six subsections provide a more detailed view on six distinct technologies: robotics, internet
of things (IoT), cloud computing, artificial intelligence and neural networks, as well as data analytics and
distributed ledger technology. These technologies are expected to have a major impact on the waste
industry.
4.1.1 Robotics
There is no generally valid definition for robots. Instead, those definitions that exist differ greatly with
respect to the extent of autonomy, the area of application and capabilities. Two definitions are presented
below:
Most of these definitions however, are for specific types of robots and refer to machines that have
different options of action, and that can execute these actions more or less autonomously. The great
progress in the fields of mechatronics, in sensor technology and its production, as well as in computer
science has, in recent years, greatly expanded the limits of robot autonomy. Even if individual robots, such
as the mars rover or deep-sea diving robots, are meant for tasks that are not possible for humans to
execute, most robots are built to replace human labour. This mostly concerns tasks that consist of a few
Figure 4.2: Number of operational robot stock, nearly doubling from 2015 to 2020
In the context of waste management, robotics is a two-faced technology. On the one hand, there have
been major advancements in the pneumatic sorting process as a result of automation technology, which
can be viewed as robotics, and we can expect further improvement in this area. These advancements allow
producing defined waste streams of high purity which is mandatory for an efficient recycling process.
Moreover, in the future there will likely be robotic technology facilitating the collection process as well as
the logistics involved in waste handling. On the other hand, robots are involved in every part of the
production process of modern goods, starting from resource extraction up until packaging and shipping of
the final goods. This resulted in a major increase in productivity (IFR - International Federation of Robotics,
2017) and also spurred miniaturisation. However, all these goods produced end up as waste, once they
are used and discarded. So, seeing the complete picture, automation and robotics are at the source of a
problem they can help to resolve.
There are several examples of robotics in the waste management sector, representative ones are listed
below:
● Apple (USA): The robot Daisy dismantles up to 1.2 million used iPhones per year enabling the
recycling of the used materials including tin, aluminium and cobalt which is essential for building
batteries (Apple, 2020).
● BHS (USA): MAX AI is a robot that is able to identify and sort recyclables through a vision system
which is continuously improved by AI (BHS, 2020).
Internet of things (IoT) refers to the trend that more and more devices are connected to the internet or
other networks even though the primary purpose of these devices is not the connection. Examples in the
smart home context are the digitalisation and networking of household appliances such as TV’s, smart
light bulbs, washing machines and refrigerators that can be accessed remotely or even communicate with
each other. Other examples in the industry 4.0 context include the networking of production machinery
together with monitoring the whole production environment, and in the traffic context the networking of
road users and sensors that monitor the current traffic status.
A prerequisite for the IoT was the increase of wireless network and communication technology (mobile
radio, Wi-Fi, Bluetooth, NFC). Miniaturisation and mass production of the required hardware are other
important ingredients that led to this technology. Only because of this development, has it become
possible and affordable to integrate connectivity and functionality into various devices. The fascination of
this development lies in the expectation that data and functionalities which it makes available, open up
completely new insights and possibilities. Predictive maintenance to reduce downtime, smart metering
for supply-related power consumption or traffic jam reports based on user movement profiles are
prominent examples. However, IoT also poses risks, such as the risk of totally monitored citizens, not only
by the state but also, and above all, by companies or criminals who gain unauthorised access to the data
collected in this way. The security of devices is another problem, for example, infected IoT devices are
used for distributed denial of service attacks (Symantec Security Response, 2016) or there is the possibility
to follow the live stream of thousands of surveillance cameras with inadequate access restrictions
(insecarm.org, 2020).
For the waste and recycling industry, the opportunities of IoT exist above all in sensor-supported
containers, in the simple, electronic processing of documentation, and in the networking of vehicles to
improve logistics. Sensor supported containers collect data such as container location or filling level. This
data is transferred to a central unit and used to optimise workflows such as pick-up routes. This technology
is being employed at an early stage in some innovative cities. Electronic documentation can, for example,
be facilitated by RFID3-tagged waste bins. They make it easy to document failure to collect or failure in
sorting, or to detect waste bins that are not paid for. The technology is proven and has been applied for
years – countries such as Germany have several million RFID equipped waste bins in use. In the long-term,
3
Radio frequency identification (RFID) is used to identify and track tags attached to objects with the help of
electromagnetic fields.
● Smart bins (remotly monitored and managed waste bins, enabled by level measurement): Bigbelly
Inc. (USA) (Bigbelly Inc, 2020), Ecobins (Croatia) (Ecobins, 2020), Eco mobile d.o.o (Poland) (Eco
Mobile, 2020), ECOnX Waste Solutions B.V. (Netherlands) (ECOnX Waste Solutions B. V., 2020),
Nordsense (Denmark) (Nordsense, 2020), Oneplus Systems Inc. (USA) (Oneplus Systems Inc.,
2020), SSI Schäfer (SSI Schäfer, 2020) , SmartBin Live(SmartBin, 2020)
● C-trace GmbH: vehicle systems for garbage trucks including ident-system (RFID-based
identification systems for identifying bins and counting emptying) and weighing system for weight-
based billing, incorporated into software modules (c-trace GmbH, 2020)
● Smart Recycling AB (Sweden): optimizing emptying logistics based on level sensors and GPS-
coordinates of containers (Smart Recycling, 2020)
● StalkIT AS (Norway): tracing and tracking of items like containers by measuring and transmitting
location, movement and temperature (StalkIT AS, 2020)
● teXXmo Mobile Solution GmbH: “IoT-Button”, a physical button that can be programmed to trigger
predefined processes such as triggering collection of containers (teXXmo Mobile Solution GmbH,
2020)
4.1.3 Cloud-Computing
Cloud computing is a model that allows convenient network access on-demand, anytime and anywhere,
to a shared pool of configurable computing resources. They can be made available quickly and with
minimal management effort or service provider interaction (NIST - National Institute of Standards and
Technology, 2011). These resources can be storage systems, applications and services, servers or
networks.
As a result, IT services can be offered, used and billed dynamically adapted to demand. The range of
services offered in the context of cloud computing covers the entire spectrum of information technology
and includes infrastructure such as computing power and storage, but also platforms and software.
Around 2020, the data stored in cloud-storage is expected to surpass locally stored data according to the
Statista digital economy compass 2019, compare Figure 4.3.
This model creates the possibility of shared use of capital-intensive investment goods such as computing
power or software. There are basically three categories of service models: infrastructure as a Service (IaaS),
Platform as a Service (PaaS) and Software as a Service (SaaS) (BSI - Bundesamt für Sicherheit in der
Informationstechnik, n.d.). Cloud computing is used in the waste management industry in various
applications. Examples are storage and processing of sensor data or software solutions for the
management, collection, administration and documentation tasks. This cloud-based software can be billed
on a pay-per-use or time limited license or can be open-source so that only the service fees for software
administration and used infrastructure are billed. A list of software applications in the waste sector, relying
on cloud computing, is given below
● ISB Global Ltd. (UK): cloud computing for Infrastructure, architecture, development and
deployment of “SAP Waste & Recycling One” (trademark, ISB Global Ltd., 2020).
● MOBA (Germany): cloud computing for container management, customer management, tracking,
navigation and route planning (MOBA - Mobile Automation, 2020).
● AMCS Group: connection, standardizing and optimizing internal procedures (AMCS Group, 2020).
● Waste Logics Software Ltd. (UK): Management software for multiple devices including functions
such as real-time order management, route planning and optimisation, customer self-service,
order-tracking and evaluation (Waste Logics Software Ltd., 2020).
● Samsara Networks Inc. (UK), Rubicon Global Holdings LLC. (USA), TouchStar Technologies Ltd. (UK):
Vehicle life tracking, route planning, analysis and optimisation using cloud computing (Samsara
Networks Inc., 2020, Rubicon Global Holdings LLC., 2020, TouchStar Technologies Ltd., 2020).
In general, intelligent systems are characterised by their ability to solve problems independently and
efficiently (Mainzer, 2016). Artificial intelligence is trying to achieve that by using digital solutions. Several
different approaches exist with the most famous one being machine learning using neural networks. It is
based on the use of data or examples to solve problems without explicit programming. A typical example
is classification/pattern recognition which is used in waste management context as well. Commonly,
neural networks are used for this task, they consist of interconnected layers that compute the input
Applications of this AI to the waste management sector are sorting applications that use image
recognition, autonomous vehicles and sweeping robots. AI can also enable collection to take place at
optimal times (route optimisation and predictive pick-up). A prerequisite for this is the existence or
collection of data sets, for example, by equipping collection vehicles with sensors. AI can also be used in
customer services, for example if speech recognition is used to route a call to the right employee or in
training chatbots. This application can be very important in terms of service improvement and relieve of
communication as well as service departments in municipal service centres. Moreover, citizen information
services including correct forms of domestic sorting, waste management by households and so on can be
more efficiently offered. In Hamburg, AI is used to classify illegally dumped waste through image
recognition, in order to enable efficient removal. Specific examples include
● Autowise.ai (China), Enway (Germany): autonomous, self-driving sweeping vehicles that perform
cleaning tasks in commercial or public areas (Autowise.ai, 2020, ENWAY, 2020).
● Volvo Group and Renova (Sweden): autonomous, self-driving refuse truck for curb side collection
(Volvo Group, 2020). An increase in reverse driving enables time savings.
● Remeo and Zen Robotics (Finland): Robotic waste sorting station based on image recognition and
IR scanning (Zen Robotics, 2020). Gripping robots scan waste objects and sort it into different
containers. Through the application of AI, adaptation to new sorting fractions can be easily
implemented.
● Stadtreinigung Hamburg (Germany): AI image classification for illegal littering. Citizens can take
images of illegal littering with their smartphone. A software classifies the images and redirects it
to the appropriate agent.
The process of digitisation has made the collection of large amounts of data much easier as activities are
logged digitally (IoT) and thus create additional data. However, masses of data alone do not create much
value, only the possibility to analyse data makes it so valuable. Data Analytics is the task of processing and
analysing data in order to identify patterns, extract information, discover trends or calibrate models. In
order to make the insights and knowledge gained through data analytics understandable, and to
communicate them, visualisation is an important aspect of data analysis.
Data analytics plays an important role in the recycling industry, even if its use is not always apparent at
first glance, since data processing is often automated and runs in the background. Examples are
electronically supported disposition of waste collection vehicles, evaluation of sensor data for automated
sorting plants, or control of waste incineration plants. All these technologies are used commonly today.
An overview of waste quantities and material flows on regional or national level is also based on the
collection and analysis of data. This knowledge is important in order to evaluate different options for the
transition to a circular economy.
Examples for commercial technologies that are relying on data science are listed below.
With the publication of a whitepaper on a digital currency by Nakamoto in 2008 the idea of blockchain and
Bitcoin was born and the foundation for the distributed ledger technology was laid (Nakamoto, 2008).
Distributed ledger technology (DLT) is in its broadest regards the idea of a decentralised database. While
there are many approaches to store data on distributed servers, DLT differs from those. In DLT, no master
database or central unit, which gives writing permissions to the database, exists. Instead, every user can
write in the database, but all changes are logged indefinitely. If there are conflicting versions, a consensus
protocol ensures that all parties agree on one version and continue working with that. In its most known,
used and proven form this distributed ledger technology was used to implement a digital currency called
Bitcoin. The Bitcoin database is called the “blockchain” since transactions are stored in blocks, and each
block uses a hashing algorithm to include information from all previous blocks – a chain.4 This chain-like
structure makes changing previous blocks nearly impossible. The attempt would require tremendous
amounts of computing power. Consensus for Bitcoin is reached through proof of work. A significant
amount of computing power and time has to be invested to add a block to the blockchain, in other words
to write and prolong the decentralised database. The person that supplies this computing power is
rewarded with Bitcoins – the money of this digital currency. For the improvement of waste management
and a transition to a circular economy, there is a need to track material flows and to pass on data on
materials and products in the supply chain. It is hoped that the DLT will be able to solve some of the barriers
that arise with these tasks. The hypothesis is that through DLT flows of material and waste can be easily
stored and monitored because the data can be made publicly available in a distributed ledger. A product's
lifecycle should then be stored in the blockchain for better tracing and more information on the product's
history.
4
While the actual implementation for bitcoins is done using merkle trees, the authors decided to stick to the
image of a chain for the sake of simplicity.
This section provides an overview on the application of digital technologies in the waste management
sector. The current status of digitalisation of the waste sector in an international context was the topic of
a survey of the International Solid Waste Association (ISWA) with about 1000 international experts in the
waste management industry. To the question whether "... the 4th Industrial Revolution will influence the
waste and recycling industry", 66 % of the respondents answered “yes”, 31 % "somewhat yes". Half of
these respondents think that the 4th Industrial Revolution will have a great influence, 45% think that it will
have some influence. The biggest influence is expected to come from the development of new materials
and sensors, with chatbots (62%), fully automated recycling plants (72%) and fully automated sorting
plants (80%) named as top 3 innovations. The main investment targets will be apps (47%), new sensors
(47%) social media (45%) and Big Data (44%) according to the participants.
Overall, however, there is still a great need for knowledge - only 14% of the experts consulted in this survey
say they know "a lot" about the 4th Industrial Revolution, 57% would say they know "something" about it
(ISWA, 2017). A subsequent report by ISWA about digitalisation describes best practice examples and
drafts further developments (ISWA, 2019).
The three areas of communication, waste collection and internal processes have been the main focus of
digitalisation up to now. The developments in these fields are discussed separately below. The report will
not specifically discuss digitalisation of recycling beyond sorting, landfill and incineration in detail for
different reasons. Digital tools for recycling processes of materials obviously exist and many more are
being developed, ranging from process automation and quality control to e-commerce platforms for trade.
However, the technologies required and employed differ widely, for example, based on the large variety
of different materials (plastics, metals, wood, paper, glass, etc.) each of which requires different
treatments, has different market characteristics and so forth. The analysis of digital recycling technologies
in their entirety would therefore require its own dedicated study and cannot be sufficiently addressed
here. Digitalisation in landfills and energy-from-waste (incineration) facilities exist, with some notable
examples such as the ReSource International example cited above (drone-based data collection) as well as
AI-based services for detection, registration and handling of illegal landfills and littering. In accordance
with the priorities defined by the waste hierarchy (recycling should be prioritised over recovery and
disposal), an effective use of digital technologies for improving waste management should subsequently
and ideally reduce the amount of waste directed to recovery and disposal. For limiting the scope of this
study these two least preferred options are not further discussed.
4.2.1 Communication
Communication technology makes up the biggest part of digital solutions already in use in the waste
sector. Here the transfer from other sectors is easy because the necessary investment in hardware is
relatively low. For municipal waste disposers, communication is important to stay in touch with citizens.
For commercial waste businesses, communication with customers is a mandatory and important part
especially when tasks such as billing and documentation are included.
One aspect is communication from the waste disposal company to customers or citizens. It includes
information on pick-up dates, information on waste separation into different types, bills, and reports on
disposed waste. Communication from the citizen or customer to the waste disposal company is needed to
schedule pick-ups, change data for ongoing waste contracts, inquire on prices and services, and handle
any other type of customer contact initiated by the customer.
Several digital solutions exist to help facilitate and streamline this communication process. They can be
subdivided into the following categories (Berg, forthcoming):
● Website – serves above all to display general information on the offered service, prices, etc. When
designed as a web-portal, it facilitates the process of contacting the service or changing data
needed for service fulfilment by providing appropriate input forms. Municipal services often show
information on waste separation, provide information on public collection stations and containers,
offer reminder services if a routine pick-up service is scheduled, give information on special waste
such as hazardous waste and provide the possibility to report illegal littering or other issues.
● Mobile App – all the information presented on a website can be accessed via a mobile device as
well. Additionally, the possibility of individualised apps exists. It allows for an easy personalisation
to deliver individual calendars, push-messages for news and important events. Furthermore, the
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built-in sensors of mobile handheld devices allow integration of data such as position or the use
of functionalities such as QR-Codes, images, or NFC Tags. Dedicated software for business-to-
business communication allows for easy creation or modification of jobs, such as collection
requests, and facilitates the subsequent documentation and billing tasks if the required
information is passed along in or between the digital systems
● Integration in existing apps or websites for public services – If there is a communication solution
for other public services already, often waste-related information of public waste services is
integrated. This reduces the number of different information access points and increases
convenience for citizens.
● Use of proprietary communication apps – third party apps for communication such as WhatsApp,
Facebook, Twitter or Instagram are used by some waste companies for public relations purposes
or even to communicate with customers. In a ranking of technologies that will have the most
impact on solid waste management, social media was ranked 5th place (ISWA, 2017).
Many of these communication solutions need to work with personal data. It is therefore important to
consider the data protection legislation – especially GDPR – in an early stage during the design phase of
digital solutions.
Waste collection is an important part of the waste business, and the digitalisation process is already taking
place. Several parts of the waste collection process can be digitalised such as automated documentation,
use of sensors in the collection process, routing and the inventory tracking and resource planning.
Collection vehicles can be equipped with sensors, see Figure 4.5. Apart from the standard suite of sensors
built into trucks, there are several sensors specific for the waste industry such as a balance checking the
weight of the collected waste, RFID sensors for the identification of individual garbage bins or GPS sensors
to track the location of the vehicle (Figure 4.5). For the integration of sensors into the refuse collection
vehicles’ CAN-Bus, the CleANopen standard has been established. It is specified in the EN pr16815:2018
norm. Internal communication for functions such as bin-lifting, measuring or the crane-unit is described
here (CiA - CAN in Automation, 2019; Industrial embedded systems, n.d.). A good overview on the topic
can be found in a technical overview of two German waste associations (BDE - Bundesverband der
deutschen Entsorgungs-, Wasser- und Rohstoffwirtschaft and VKU - Verband Kommunaler Unternehmen,
2016).
Route planning is an integral part of the waste collection process and benefits from digital tools based on
geographic information systems (GIS) to optimise routes and save operation time. The routing task was
handled manually in the past, nowadays digital tools allow for the optimisation of fixed routes or can
include real time data to optimise routes for the current traffic situation. Additional boundary conditions
and inputs such as avoidance of schools in opening times or ignoring containers that are serviced less
frequently can be taken into account. Individual routes can then be transmitted to the vehicle's navigation
hardware to communicate them to the drivers. These routing solutions are applied in the waste collection
industry already and are integrated in various software applications. Due to the high costs for running,
maintaining and operating the crewed collection vehicles, even minor improvements in the routing can
have a fast return of investment (ISWA, 2019).
Figure 4.5: Waste collection vehicles and the integrated digital solutions.
In general, no matter what industry, nearly all paper-based processes that concern storing or passing on
information are and will be affected by digitalisation. The same is happening in the waste sector. Billing,
accounting, controlling, processing of orders, documentation, subcontractor management and many more
processes are digitalised. The advantages are obvious: less costs, better storability, better searchability as
well as less transfer work and fewer errors if a piece of information is used multiple times. Software
solutions exist for all these tasks. There is specialised software for single tasks, and software packages that
cover the whole process. Interfaces and compatibility in between software solutions are important aspects
to consider and as of yet are not completely developed.
As an example, for hazardous waste that requires a proof of disposal and documentation of the related
steps, an electronic waste documentation procedure (“Elektronisches Abfallnachweisverfahren” - eANV)
has been established in Germany nearly ten years ago. All parties involved communicate electronically
instead of using paper forms, as was the case in the past. These parties can be authorities, disposal
companies, collectors, carriers or producers. Linked to the eANV is the obligation to keep an electronic
register and use an electronic signature.
Table 4.1 gives an overview of the aforementioned digital solutions applied in the waste management
sector.
In this section several case studies, some of them existing case studies (voluntarily anonymized) are
presented that show how digital technologies are applied for various tasks in the waste management
sector. Each case study is presented in a standardised form (factsheet) to allow getting a quick overview
and for better comparability.
5
A similar representation was published in Berg et al. (forthcoming).
Con
● high investment costs
● legislation is not adapted to the technology so
far
Similar applications Development stage
● autonomous driving is implemented by ● system is being tested for 5 years
various companies. However, only one ● no planned date for commercial availability
application to the waste collection sector ● similar technology is applied in mining trucks
is known so far.
Applicable waste streams Sources
● all waste types with street side collection ● Product homepage
● ISWA Report (ISWA, 2019)
6
A similar representation was published in Berg et al. (forthcoming).
Con
● Risks of manipulation and systems failure
● Risks of data loss
Similar applications Development stage
● Various providers exist ● About 1000 glass containers equipped in
● In addition to the fill-level, the bin sensor different municipalities in Germany
collects temperature data for enabling
timely reactions to incident e.g. fire-alarms if
burning
● Using RFID transponders and GPS
identification system, solutions can also be
used for PAYT charges (ISWA, 2019)
Applicable waste streams Sources
● Applicable to all types of containers ● Product homepage
● Launched on glass containers but currently ● Berg et al., forthcoming
under development for additional waste
streams such as textile or construction and
demolition.
7
A similar representation was published in Berg et al. (forthcoming).
The accelerators and inhibitors presented for waste collection and treatment in chapter 3, define the field
where improvement through digitalisation occurs or is expected to take place. The technologies applied
in this field, largely consist of combinations of the technologies presented in section 4.1 (also: Berg et al.,
forthcoming).
Waste collection systems and their operation can make up an important share of the cost for disposal and
recycling and are quite labour intensive. For example, shares of 40 to 65 % of the total operational costs
were determined for the collection of paper and packaging waste from households in four case studies in
different European countries (van Leeuwen et al., 2020, p. 104). Several aspects of collection are being
transformed by digitalisation, especially logistics, the process of organising, planning, scheduling and
dispatching the tasks, personnel and vehicles. Here, digital tools offer the possibility of enhancing the
process by storing, processing, analysing and optimising all necessary information and presenting it in an
appropriate way. The ability to search data or to put it into context enhances the overall performance of
the dispatching person as well as the performance of the concerned tasks. Information generated during
the collection process, for example on temporal progress or incidents, can be fed back into the system.
With this information another feature of digital systems comes into play to improve operations. Where
the amount of information and complexity grows too large to be handled by humans, optimisation
algorithms can help to find the most suitable options for allocating resources, such as work force or
vehicles. Important technologies are telematics, including routing systems, navigation and vehicle tracking
software, Enterprise Resource Planning (ERP) systems and similar. The resulting improvements mostly find
expression in an increase in efficiency. If upcoming technologies such as IoT with applications like smart
bins, robotics for semi-autonomous waste collection vehicles or AI for waste prediction are considered,
there is substantial room to improve the waste collection process in the future and to align it with the
needs of a circular economy. For example, a more flexible reaction to changing waste patterns and targets,
or the implementation of on-demand and customised services can be facilitated (ISWA, 2019, p. 24).
Another part of waste collection is the process of documentation, informing and billing. Here, the ongoing
switch from paper-based administration systems to digital systems as seen in other industries will further
increase efficiency and information flow for processes. Technologies to be named are digital ID tags for
waste bins and containers, digital order processing, digital billing and payment, digital user interfaces for
communication and information update, as well as interconnection of other relevant governmental
databases to public waste collection providers. If these digital technologies are applied in the
documentation processes, they can be used for gathering public waste related data. Turned into valuable
information by data analytics, they can support a circular economy by “a better understanding of the
spatial and temporal patterns of waste generation” (ISWA, 2019, p. 24). Additionally, the possibility of
collecting many single data points instead of just reporting cumulative values, can provide further insights
for authorities.
Pay as you throw systems become more feasible using digital identification and billing techniques. They
are deployed in different locations over Europe (ISWA, 2019, p. 24). These systems allow for a “fair” billing
scheme by allocating costs proportional to the amount of waste generated. Nevertheless, it was shown
Furthermore, an improvement in communication with customers and the public can be expected when
using digital communication channels. Examples are on-demand and personalised information, the
possibility to conveniently change personal data through digital interfaces and push-messages through
social-media channels. An online based complaint management allows to draw attention to problems
timely (ISWA, 2019, p. 24). Further improvement is envisioned in the form of nudging through tailored
messaging on a personal level - for example appreciation for waste savings or good separation behaviour
can be implemented as well as notifications if separation behaviour was not satisfactory. These solutions
are intersecting with the field of waste prevention.
Improvements in the automated treatment and handling of waste that substitute human labour are
expected to be introduced. A driver of this development is the cost pressure elaborated in chapter 3. One
important field of application is the sorting process as a prerequisite for recycling. At present, sorting is
usually carried out up to a certain purity level, although better sorting would be possible. However, it is
then not economically feasible or necessary for the intended use. Digital technologies that increase the
cost efficiency and/or precision of the process will enable better sorting at lower prices and thus improve
the range of secondary material quality available to production processes. AI supported robotic sorters
are a technology in fast development. Another often-discussed approach is the labelling of products using
watermarks, QR codes or other kinds of digitally readable markers. Including information on material
composition of the product, these could facilitate the sorting process and enhance the recyclate quality.
Accompanying data collection and analysis allows for deep insights into the automated processes and lay
the foundation for further improvement. For example, an analysis of the input stream could be used to
predict daily and seasonal effects and adjust the sorting lines accordingly. Also, a quick response to
changing targets or even market prices is conceivable (ISWA, 2019, p. 36).
Table 5.1 summarises established and emerging digital technologies applied to waste collection and waste
treatment, as described in the preceding section.
The recycling sector as one of the key sectors for a circular economy (as further introduced in Chapter 7)
has made progress over the past decades. However, research shows that in many industries a major share
of materials is still not being recycled. Digital technologies provide the chance to considerably advance the
development of recycling and to unlock new possibilities. This section presents the possible improvements
from an actor-oriented view with the main actors being producers, consumers and recyclers. The critical
actions that need to be undertaken to enable a circular economy by these actors can be summarised as
follows (see Figure 5.1):
● producers: design for recycling, use of recyclates and recycling of production waste
● consumers: improving separation behaviour and purchase decisions
● recyclers: improving the sourcing of suitable waste-streams
There are several barriers that currently hold these actors back from implementing such critical actions.
Many of these can be addressed by digital technologies as presented in the following paragraphs.
Producers
The design of products and materials is a crucial factor for the cost of recycling and thus for the
competitiveness of recyclates (European Environment Agency, 2019b, p. 215). However, one potential
barrier for the design for recycling is the lack of know-how of product designers and construction engineers
on what the best material options are and how they can be combined and compiled to yield a well-
recyclable, small-footprint product. Here, the possibility of digitally distributing knowledge can be
leveraged. Several universities offer online courses free of charge that dive into these topics such as:
“Engineering Design for a circular economy” or “Sustainable Packaging in a Circular Economy” by TU Delft
and “Circular Fashion: Design, Science and Value in a sustainable clothing industry” or “Circular Economy:
An Interdisciplinary Approach” by the University of Wageningen. The Round Table “Ecodesign of Plastics
Packaging” (IK Industrievereinigung Kunststoffverpackungen e.V., 2020), an industrial initiative, provides
guidelines and tools for implementing design for recycling approaches. Apps like “Idemat” offer product
designers an easy possibility to compare the LCA-based impact of the materials they use.
As the costs and benefits of design for recycling are unevenly distributed among producers and recyclers,
there is a need to incentivise collaboration across the value chain. Advancing the implementation of
One example for a corresponding legislation is the German Packaging Act (“Verpackungsgesetz”). It
supports design for recycling by discounts on the recycling fee that has to be paid for every packaged item
sold, and is used to pay the recycling industry to recycle this packaging waste. Monitoring and
documentation necessary for the implementation of this legislation rely heavily on digital technologies
and would not be manageable without them.
Together, these different approaches enable better design for recycling and thus a higher quality of the
waste stream.
Another critical action, the use of recyclates for products, can be facilitated by digital technologies. Wilts
and Berg have described the requirements for a higher recyclate use (Wilts and Berg, 2017). The main
points are the possibility to implement a proof of quality, lowering transaction as well as search costs, and
enabling a steady supply of recyclates through better matching of supply and demand. All these aspects
can be addressed digitally which would lower some of the barriers for producers to use recyclate for their
products. For example, digital technologies can help by tracking and proving recyclate quality at a highly
granular level, e.g. for every single lot. Additionally, if the quality can be matched to the corresponding
product through better searchability, this results not only in more recyclate being used, but also in less
downcycling.
Recycling of production waste is another way with which producers can support a circular economy. The
related barriers are strongly depending on the actual use case. However, in settings where recycling is
carried out by external businesses, the same barriers and solutions as presented above for the use of
recyclate apply. Digital solutions may enable the information flow between manufacturers and recyclers
that is necessary for a high-quality recycling of production residues, as currently examined in the Interreg-
funded project “Di-Plast” for the plastic industry in Northwestern Europe.
Consumers
A critical action on the consumer side is to improve separation behaviour (EPC - European Policy Centre,
2019, p. 12). Here, digital communication technologies and tools can be used, acting in two different ways.
On the one hand, the knowledge needed to separate waste correctly can be provided easily using digital
tools. Barcode scanning apps that explain how to recycle a specific product or packaging are one example.
Similarly, in business environments it is possible to retrieve information about the sorting of common
waste items on handheld devices or the like. On the other hand, it is important to enhance the motivation
of consumers for making recycling efforts by raising awareness for the problem and showing how each
person can contribute to the solution. Here, communication in social media channels can be used.
Another critical consumer action is the purchasing decision. If recycled content and recyclability play an
important part in choosing a product, this can leverage more use of recyclate and design for recyclability
on the producers’ side. The technology used by apps like CodeCheck, that present information about the
sustainability of products to the customer when scanning their barcode, could also be applied to recycling-
related information. Another group of consumers that have a huge leverage are public authorities and
their public procurement policies. Here, the barrier usually is a lack of knowledge or the distrust in recycled
materials, which could in principle be addressed by digital information and communication measures,
although there are no examples of that kind so far.
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Recyclers
On the recycler side, a critical action is improving the sourcing of waste streams, which can be supported
by waste-trading platforms such as those available for scrap-metal or plastic waste (EPC - European Policy
Centre, 2019, p. 9). As mentioned above, search and transaction costs are lowered drastically in this way,
improving the price competitiveness of recycled materials compared with virgin materials. Moreover,
faster and more transparent information about available quantities of suitable waste streams can facilitate
more stable recycling markets (ISWA, 2019, p. 36). Additionally, better reporting on quality could be forced
by the waste-trading platforms as the possibility to easily compare different offers turns additional
information on waste quality into an added value. The introduction of material passports could help
providing such information in a reliable and transparent way (ISWA, 2019, p. 36).
The digital transformation has so far shown ambiguous effects on the environment. Adverse effects
concern excessive use of energy and resources caused by certain technologies and processes (streaming,
blockchain applications,…). On the other hand, digital technologies have allowed for vast efficiency gains
in terms of energy, resource, time and cost reduction in other areas, e.g. through digitally improved project
and process design. Both effects imply a need for high scrutiny regarding the impact of digital technologies
in the future and an active management of the digital transformation on the side of policy makers. Positive
and negative external effects caused by digital technologies in the waste management sector are discussed
below. Figure 6.1 summarises the main points.
The adverse environmental impact of digital technology can mainly be divided into three fields: the
resources needed for the production of its devices, the energy consumption during its use and the
generation of Waste of Electrical and Electronic Equipment (WEEE). While there is only limited data on
resource use, it is clear that the environmental burden of digitalisation is not neglectable. For example,
the electricity used globally for the production and the operation of consumer devices (including
entertainment electronics such as TV), network infrastructure and data centres is expected to reach about
Eionet Report - ETC/WMGE 2020/4 39
10 % of the global electricity usage in 2020 and to rise up to 20 % in 2030 (Andrae and Edler, 2015).
Estimations for the global carbon footprint of information and communication technology (ICT) in 2030
range from about 1.3 Gt to 2.1 Gt CO2 (Andrae, 2020), representing about 4-5 % of the global carbon
emissions CO2. In 2016, about 44.7 Mt of E-waste was generated, of which only 20 % was collected and
properly recycled (Baldé et al., 2017).
On the other hand, increases in process efficiency through digital applications or the transformation of
physical (e.g. paper-based) systems into digital ones can potentially be environmentally advantageous.
Another field where digital technologies already have an impact and will likely play an important role is
monitoring and tracking. Even with strict pro-environmental legislation, it is often difficult to control and
enforce that legislation. Here, automated digital monitoring and reporting of emissions, immissions and
material flows can facilitate, enable and intensify law enforcement.
While, to the knowledge of the authors, there are no studies quantifying the environmental effects of
digitalisation for the waste management sector, the potential can be assessed by regarding analogous
numbers. The Global e-Sustainability Initiative (GeSI), a partnership of ICT companies and industry
associations, estimates the global greenhouse gas abatement potential of ICT for 2030 to be 12.1 Gt CO2e,
with the biggest potentials in manufacturing (22 % of total abatement potential), agriculture (17 %),
buildings (16 %), energy (15 %) and logistics (10 %). When considering rebound effects, the abatement
potential is revised downwards to 10.7 Gt (GeSI - Global e-Sustainability Initiative, 2015). Even though
these numbers are based on a bottom-up model approach with many assumptions which are not reported
in detail and have thus to be treated with caution, they hold the promise to save a multiple of the ICT’s
own emissions. To get an idea of the order of magnitude for the potential benefits for the waste
management sector, it might be instructive to look at a similar sector: For transportation, the International
Energy Agency expects a 22.6 % reduction of energy use in road freight from 2015 to 2050 through digital
technologies (IEA - International Energy Agency, 2017, p. 38). The examples for underlying technological
solutions mentioned in the report (real time route optimisation, on-board monitoring for eco-driving
performance, vehicle connectivity, data sharing across the supply chain) are in principle also applicable to
and to some extent already applied in waste management.
The use of digital technologies comes with a change in cost structure. While efficiency is increased resulting
in a lower OPEX (operational costs such as labour), usually the investment costs for these digital solutions
are higher than for their traditional alternatives resulting in higher CAPEX (cost of capital). All in all, a shift
from OPEX to CAPEX can be observed. This favours bigger players that can raise the required money and
can be a problem for public companies where large investment costs can be a political issue.
This shift in cost structure can be counteracted by employing as-a-service or pay-per-use models that are
widely available in the digital sector.
Workforce characteristics will likely be changing through the change in skill sets required to operate digital
technologies and potentially need less (unskilled) labour due to automation. Additionally, faster changing
product cycles make a continuous training necessary.
There are several business models emerging or already established in the course of digitalisation of the
waste sector. Additionally, it is expected that new business models will be created (again mentioned in
section 7.2.4). Implications vary substantially from business model to business model - a range of
exemplary cases and their implications are presented here.
There are several businesses that are trying to adopt the digital platform model to waste and recycling
businesses. Examples are plastship.com or cirplus.com. The aim of both is to be the go-to location for, for
example plastic waste. Implications are diverse. Firstly, we can assume that easy matching of supply and
demand will contribute to increasing overall recycling rates. Secondly these portals would have the market
power to enforce quality standards or the supply of material information from the business side. If this is
the case, an improvement in material quality and thus of recycling would result.
Several companies are offering software suits that address the specific needs of waste companies like
container management, vehicle tracking or else. Recyclingmonitor.de is one example that uses the
connectivity and sensors built into modern handheld mobile devices to carry out these tasks. While these
allow for various improvements, their functionality and security have to be ensured.
Business analytics applications for the waste management sector are creating an added value by putting
the available data into perspective. Examples are AMCS (AMCS Group, 2020) or TouchStar (TouchStar
Technologies Ltd., 2020). Solutions for an automatic measurement of fill levels of containers and
transmission of the data that can be used for optimisation, have been presented in the first part.
Identification systems on containers which restricted access to a certain user group are offered by emz
Hanauer (EMZ, 2020). While this would be possible with an analogue key system as well, the added value
consists of usage data being collected and transmitted instantly, and possible programming, for example
to enforce opening hours reducing nightly noise pollution.
It is expected that future business models will build on the increase in available data and digital
infrastructure.
As mentioned in section 2.1, there is a consensus that the digital transformation has enormous growth
potential. The potential contribution to European GDP from achieving a fully functioning Digital Single
Market (Digital Europe Programme, 2019) has been estimated at 415 billion euros. However, as for most
digital technologies discussed within the scope of this study, which are still moving from the lab to
adoption, it is not feasible yet to quantify their effects at a macro‐economic level (Katz, R., 2017). Based
on this distinction between technological innovation, diffusion and economic effects, it is currently
considered difficult to forecast the speed at which these digital technologies will undergo adoption,
especially when targeting one specific sector.
Digital transformation of our economies indeed holds the promise of improving productivity performance
by enabling innovation and reducing the costs of a range of business processes. But despite the rapid rise
However, according to the OECD and shown with Figure 6.2: “Looking behind the aggregate and sectoral
statistics, micro-level studies reveal that the aggregate productivity slowdown masks a widening
performance gap between more productive and less productive firms, especially in ICT-intensive sectors.
This divergence is not just driven by frontier firms pushing the productivity frontier out, but also by the
stagnating productivity of laggard firms related to the limited capabilities of, or lack of incentives for, such
firms to adopt best practices. Together, these signs illustrate that the main source of the productivity
slowdown is not so much a slowing of innovation by the most globally advanced firms, but uneven uptake
and diffusion of these innovations throughout the economy” (OECD, 2017b).
Figure 6.2 Divergence in multi-factor productivity growth between more productive and less productive
firms.
Once mass adoption will occur, it is reasonable to conclude that the economic effects will be significant.
One of them targets the labour market: while new technologies create opportunities for businesses,
workers and citizens to engage in economic activity, these technologies are also likely to displace workers
doing specific tasks and may further increase existing gaps in access and use, resulting in new digital divides
and greater inequality.
Not only targeting the waste sector and EEA Member States, recent OECD estimates suggest that on
average 14% of jobs are at a high risk of automation in the next 15-20 years. Another 31% of jobs are at
risk of significant change in terms of task content as a result of automation. Those estimates also explain
that new jobs will be created, and there is no evidence that digital transformation has been associated
with net job losses overall.
However, those new jobs are not the same as those that are lost, and polarisation in the labour market is
a concern. High-skilled workers have thus far tended to benefit relatively more from technological change,
while the share of employment in middle-skilled jobs has decreased. Going forward, low-skilled workers
are most at risk of losing their jobs and being left behind, see Figure 6.3.
Figure 6.3: Decrease of middle skilled between 1995 and 2015 for different countries.
Still depending on the speed of adoption of digital technologies mentioned above, major changes in the
division of work between machines and people will occur with high certainty. Whereas automation
supposes a transfer of knowledge and expertise from operator to system, robotics provide operators with
assistance from a robot they can interact with (Messenger, 2018). Today, this involves pooling skill sets
between people and machines. At a sorting centre, tele-operated sorting enables operators to work from
a touch-screen in a cabin, away from the sorting belt, after an initial fully automated sorting operation. In
this way, the dirty and potentially unhealthy process of sorting can be designed to be both safer and
healthier. However, sorting certain waste streams, such as plastic bags, still demands a combination of
actions in a three-step process: hand sorting for large film plastic, ballistic separator for other films, and a
final optical sorting.
As discussed in section 6.2.3 and shown in Figure 6.3, polarisation is a concern in the labour market. These
changes, combined with rapid changes of economic models, destabilize employees’ skills bases.
Transformations impacting employment types and how they are organised, will lead to more frequent
changes of jobs and task. Training methods will also evolve towards a peer-to-peer model, via platforms
or augmented reality, allowing people to acquire the skills they need as and when they need them.
However, not all employees within an organisation will necessarily be treated equally, if only because some
will be digital natives and others not. People occupying the most-impacted posts will have the greatest
need for upskilling, but they risk being disadvantaged in favour of those occupying roles judged
strategically important. Those transformations are illustrated in Figure 6.4.
Despite the numerous advantages and facilitations that digital technologies imply, resistance from
employers against their introduction can be observed (Berg et al., forthcoming). There are three main
concerns
● surveillance - as every work step in a digitalised workplace creates data, it is much easier to use
this data to track, analyse, compare and judge the performance of each worker. Who is driving the
waste trucks too aggressively/working too slowly? What team constellations are working most
efficiently? What tasks are employees spending their time on? And so on.. This leads to rejection
in some parts of the workforce;
● training - digital technologies enable faster innovation cycles and fast progression of updates,
features and technologies. This requires employees to adapt to all of these changes and keep
themselves up to date through ongoing training. This is not always viewed as positive;
● replacement - parts of the workforce see digitalisation and automation as a threat since it can
replace existing jobs.
An issue that may need attention in this regard is that of informal labour. In many countries, also in Europe,
a considerable amount of people are working informally in the waste sector, especially in the area of
sorting, and often under difficult conditions and conflicting with existing laws and regulations. It is very
likely that much of this informal work will be rendered unnecessary should the digital transformation of
the waste sector be pursued to a wide extent. For example, electronically improved sorting and recycling
may leave very few waste streams that contain valuable sources for informal sorting and sales. The extent
to which this may occur could not be analysed in this report due to restrictions in time and data, but may
require further investigation in the future.
Digitalisation of waste management activities will have clear social effects on workers of the waste sector,
but it is also essential to mention its effects on citizens and consumers. While it has been mentioned that
the use of certain digital technologies can help in better informing consumer choices or facilitate citizens’
separation behaviour, this transition can also affect their role in the waste sector. Societal acceptance by
citizens is essential for enabling high quality recycling (Vanderreydt et al., 2019), but encouraging them to
use and collect data can convert citizens into active participants of a more digital economy and co-creators
of knowledge and evidence (Hedberg and Sipka, 2020). At the same time, protection of personal data is of
great importance.
Participation and individuality have been identified as core values for a sustainable digitalisation for
citizens (Burgard, 2018). “Participation” relates to establishing minimum standards for economic and
political participation while “individuality” stresses the value of distinct individuals as a resource for well-
being and quality of life. For the waste and waste management sector, participation can be implemented
With its “Communication for a European Green Deal for the European Union and its Citizens”, the EC
released a new growth strategy that aims “to transform the EU into a fair and prosperous society, with a
modern, resource-efficient and competitive economy where there are no net emissions of greenhouse
gases in 2050 and where economic growth is decoupled from resource use” (EC, 2019).
Considered as an essential pathway for reaching climate neutrality by 2050 (EC, 2018), circular economy,
already mentioned in this study, is a system-oriented approach defined as “an economic system where the
value of products, materials and resources is maintained in the economy for as long as possible” (EC, 2015).
The concept of circular economy is illustrated in Figure 7.1. Being one of the main blocks of the European
Green Deal and building on actions implemented since 2015, the EC published a new Circular Economy
Action Plan in March 2020. It presents a set of measures aiming to provide the adequate framework for
accelerating the transition towards a more circular economy (EC, 2020a).
Characterised as a “twin challenge”, together with this new Circular Economy Action Plan, the EC
concomitantly published A New Industrial Strategy for Europe (EC, 2020b). Being in the midst of two
transformations which until now have rarely been aligned, the European Green Deal acknowledges and
aims to address the interlinked challenges of the necessary ecological and digital transformations.
Having the potential to create 700 000 new jobs across the EU by 2030 (Cambridge Econometrics,
Trinomics, and ICF, 2018), the transition towards a circular economy is now an essential component of this
new EU Industrial Strategy and considered as one of the fundamentals underpinning Europe’s industrial
transformation.
Illustrating those interrelated challenges, and thus reflecting this vision for a digitalised circular economy,
both Communications on the European Green Deal and the EU Industrial Strategy consider digital
technologies as a “critical enabler for attaining the sustainability goals of the Green deal in many different
sectors”.
In parallel, this industrial transformation is driven by the recent strategy on Shaping Europe’s Digital Future
in which the Commission defines a vision “for how Europe can retain its technological and digital
sovereignty and be the global digital leader. Recognising that scalability is key in a digitalised economy,
strengthening the digital single market will underpin Europe’s transition” and demands a “European way
to digital transformation which enhances our democratic values, respects our fundamental rights, and
contributes to a sustainable, climate-neutral and resource-efficient economy” (EC, 2020c).
Being at the heart of measures listed in the new Circular Economy Action Plan, and coming back to the
scope of this study, it is essential to understand the evolving role of waste management and prevention in
this digitalised circular economy. Underlying elements of this role are shown in the diagram in Figure 7.2,
increase of resource efficiency, prevention of waste generation and using waste as a resource, are
important strategies towards such a circular economy. Since the 1970’s major improvements in waste
management occurred in Europe. The introduction of the waste hierarchy first shifted waste management
from processing large volumes of waste towards the creation of value, bringing the focus to a need for
more efficiency. The introduction of the circular economy concept by the EU, henceforth reinforced by the
new Circular Economy Action Plan, provided the framework to shift from sustainable waste management
- diverting waste from disposal over recovery to recycling (characterised as ‘waste push’) - to sustainable
resource management, promoting the production of resources for which there is a high value secondary
raw materials market (characterised as ‘market pull’). Rather than finding a solution to manage large
amounts of waste, the new approach asks how to produce secondary materials with the right quality for
the materials market. This shift from a waste push to a market pull is conceptualised and illustrated in
Figure 7.2. This conceptualisation also reflects that whereas current waste management targets relate to
the weight of wastes, it is their quality that determines their value as secondary raw materials in the
circular economy.
Figure 7.2: Circular economy concept shifts recycling from waste push to market pull.
Figure 7.3: Trends in waste generation (excluding major mineral wastes), economic development and population, EEA-33.
As described before in this study, some digital technologies and their combination such as robotics,
Internet of Things, Artificial Intelligence, Data Analytics and Distributed Ledger are deeply transforming
our economies and have already demonstrated benefits, while sporadically, within the waste management
sector (see chapter 4). It has also been shown that they are clear enablers for advancing the waste
management regime (see chapter 5).
Bridging physical and virtual worlds, there is a clear consensus that a sound implementation of those digital
technologies cannot only enable but also catalyse the necessary shift towards a circular economy as
outlined above. A modernisation of waste laws on its own will not be enough, a shift towards less waste-
intensive business models and extending product lifetimes will be essential. The next section will briefly
introduce how and to which extent the use of specific digital technologies can facilitate a transition
towards a more circular economy.
As mentioned above, increase of resource efficiency, prevention of waste generation and using waste as
a resource are important strategies towards a more circular economy. It is important to understand that
the above-defined circular economy system approach does not only aim at reducing the negative impacts
of a linear economy by closing material loops through recycling. While recirculation of materials and a shift
The circular economy concept diagram shown in Figure 7.1, indeed reflects the importance of a holistic
understanding taking into consideration all product lifecycle stages and value chain actors. Using a life
cycle thinking approach throughout this section, it will be shown how digital technologies can contribute
to the circular economy scheme. In addition to the advancement of the waste management regime,
maintaining products and materials in the economy for as long as possible, subsequently preventing the
generation of waste is a point in case here. Indeed, we and experts interviewed as part of the research for
this project, expect that a full encompassing circular economy can only be achieved by the use of digital
technologies. Past analyses have shown that especially information deficits along the product life cycle
stages and between value chain actors of the circular economy have so far hindered the emergence of a
circular economy. They cause uncertainties and burdens on quality, supply and transaction cost
effectiveness as well as technological shortcomings. It is obvious that digital technologies are specifically
suitable to solve these challenges (Wilts/Berg 2017).
As described in section 4.1.2, the IoT is connecting material and information flows and playing a central
role for data collection. When combined with appropriate storage and analytics, collected data can be
translated into relevant information for manufacturers to track, monitor, control, optimise or again
provide some design evolution of their products.
7.2.1.1 Design
With regard to more advanced IoT capabilities, a feedback loop between a product’s stages (use, end of
life, design) can provide insights into effective product use and performance and subsequently inform
design improvements (Ingemarsdotter et al., 2019). This feedback loop can facilitate the implementation
of design thinking and human-centred design approaches necessary in a circular product design (Ellen Mac
Arthur Foundation, n.d.a, Sitra, Technology Industries of Finland and Accenture, 2018). Taking advantage
of product-in-use data for design improvements can lead to a reduction of a product’s environmental
impact, illustrating one potential benefit of the use of digital technologies at the design stage.
Still targeting this design stage, digital technologies can be used for dematerialisation, which could
subsequently lead to preventing the generation of waste. A Czech start-up, MIWA, introduced a digital
solution connecting different stakeholders along the food value chain. Through a mobile application,
customers can order the exact quantities of groceries needed, which are then delivered in reusable
packaging to either their nearest store or directly to their home. This solution does not only design out
plastic packaging, it also helps to minimize food waste (Ellen Mac Arthur Foundation, n.d.b).
Increasing reliability of manufacturing processes and extending product lifetime are important circular
strategies and sources of waste prevention. Minimising wear through predictive, preventive or reactive
maintenance and repair, or through updates are additional, potentially digitally-enabled or supported
Eionet Report - ETC/WMGE 2020/4 50
beneficial activities in a circular economy. Manufacturers can monitor their operations with an automatic
analysis of sensor data to help generate alarms when the production machine begins to deviate from the
expected operation. This can make it possible, for instance, to avoid the production of low quality products
that would be discarded otherwise (Kristoffersen et al., 2020).
At a product level and as described by Ingemarsdotter et al., “[digital] tracking allows maintenance actors
to identify and locate products that need to be serviced. Moreover, products can monitor their own use
and status, and send alerts about when they need maintenance, and which spare parts to order. The
capability of control can also enable remote maintenance, repair, and upgrades. In advanced cases,
companies continuously monitor the condition of products and apply prediction models that allow them to
optimally plan and execute maintenance before a product fails” (Ingemarsdotter et al., 2019).
7.2.1.3 Reuse/Refurbish
The above-mentioned digitally-enabled capabilities can even further maximise the functionality and value
of products by facilitating reuse or refurbishment activities. Monitoring the condition and/or controlling
of a product, or specific parts, can facilitate the implementation of take-back systems but also assess the
(remaining) performance. This “performance” information could be linked to new certification processes,
certifying the suitability for specific second-hand markets.
Another example of a well-established and well-working digital solution for reuse are second hand
marketplaces, such as gumTree or eBay, which also play an important role for waste prevention. The ability
of digital platforms to decrease the effort for finding the right offer is exploited. Demand and supply are
matched on a very individual level. It may be hypothesised that there is an additional effect through an
incentive to buy long-lasting products that can be resold on these marketplaces. While for larger items,
such as cars, these considerations are part of the criteria to purchase a certain brand or model, a similar
trend has not been proven yet for household goods. If applicable, this would result in further decrease of
waste and in economic pressure to produce long lasting goods.
As introduced above, an underlying element in a transition towards a circular economy is the collaboration
within and across value chains and among their stakeholders. Improving traceability and transparency
during product lifetimes is thus essential. Connecting those materials and information flows in a so-called
“digital product passport” and securely communicating that information to selected stakeholders in the
value chain thanks to distributed-ledger technology is a potential additional use of digital technologies in
a circular economy (Wilts and Berg, 2017). The Dutch start‑up, Circularise, is for instance developing a
blockchain‑based communication protocol called “smart questioning” to promote value chain
transparency without public disclosure of datasets or supply chain partners.
Having the mission to move the building industry towards a circular economy, the H2020 project Buildings
As Material Banks (BAMB) developed more than 300 electronic materials passports together with a
software solution. BAMB material passports are sets of data describing defined characteristics of materials
in products that give them value for recovery and reuse (BAMB, 2020).
Using a life cycle thinking approach allows for understanding how the use of digital technologies can
contribute to maintaining products and materials value in the economy. It has also demonstrated the even
greater potential that can be achieved by those digitally-enabled capabilities. Generating information for
Eionet Report - ETC/WMGE 2020/4 51
tracking, monitoring, controlling, optimising and redesigning products also allows to rethink how value is
generated and maximised. This transition towards a data-driven culture might concomitantly lead to more
service-oriented business models such as product service systems, especially in a business-to-consumers
context (already more mature in a business-to-business context) (EEA, 2017). This shift towards service-
oriented business models is indeed considered as a powerful way of maximising product value, if product
ownership remains with the producer. In that case, minimising the total lifecycle cost of the product is an
economic incentive that can for instance encourage the design of products for longer lifespans, repair,
reuse or refurbishment. Examples for product service systems are digitally enabled sharing models, which
lessen the need for personal belongings and have the potential to limit resource use, and consequently
waste generation.
There are hints for many technologies to also alleviate the environmental impact of generated waste and
the waste management sector itself. However, in several cases, holistic impact assessments are necessary
for validating those savings and limiting any potential rebound effects for individual deployment.
Furthermore, digital technologies can contribute to improvements in health and safety.
The analysis has also shown that the degree of digitalisation differs considerably not only between, but
also within countries and between private and public entities. Certain drivers for the application of digital
technologies now and in the future were identified, among them economic drivers like cost pressure,
environmental drivers such as climate protection and the growing importance of the circular economy,
and drivers from other sectors like urbanisation. Inhibitors often refer to knowledge gaps concerning the
use and application of digital technologies as well as their chances and opportunities. Moreover, the lack
of a suitable digital infrastructure such as mobile communication networks poses a problem. Investment
costs and resistance from employees are among further barriers that were identified.
It was shown that digital technologies provide ample opportunities for the waste management sector,
waste prevention and the circular economy. In the EU, digital transformation is seen as a huge trend
transforming many different sectors and will be addressed as one of the top priorities in the coming years.
Digitalisation and automation allow to streamline processes, enabling the waste management sector to
handle increasing amounts of waste and materials, and support its changing role moving from waste
handling to material management in a circular economy. Currently, important digital technologies in the
field of waste management are robotics, the internet of things, cloud computing, data analytics and
artificial intelligence.
Through digital technologies, tasks that are hazardous for humans can be automated, the efficiency of
processing can increase, higher purity of waste streams can be reached by improved sorting, and the
fraction of waste that is recycled instead of incinerated or landfilled can be increased. Moreover,
communication with citizens and customers can be improved and streamlined. At present, digital
technologies in waste management are mainly applied in the sectors communication and waste collection
and for internal processes. The technology survey shows that many further challenges in the waste sector
can be addressed with digital tools.
Even though some waste data is collected and made available by public actors, there’s still a major
knowledge gap that needs to be closed through research. Digital recycling technologies and waste
prevention need further research to be improved in order to lower the environmental impact of our
society, specifically with a focus on waste prevention and the whole circle. A horizon scanning analysis
Various other sectors have seen radical changes induced by the new digital possibilities, with completely
new business models. Those changes have eliminated established players that had been dominating their
sector over decades. Similar transformations could take place in the waste sector even though changes
will be less radical since the core aspect, waste, cannot be virtualised and municipal actors cannot be
forced out of business.
The evolution of the waste management sector and the necessary shift (from waste push to market pull,
see chapter 7) towards a circular economy, can profit immensely from the use of digital technologies. The
digital integration of recycling streams to create more circular supply chains is one point in case here.
Implications in this area need to take into account that the waste management sector and also the circular
economy have to fulfil a number of obligations that transcend economic success and viability and
specifically relate to concerns of health, hygiene, safety and environmental protection.
Overall, the matter of the digital transformation of waste management and prevention in a circular
economy is under-researched and requires much more analysis. Several topics are relevant here:
● The heterogeneity within Europe with regard to the digitalisation of the waste management sector
needs to be understood and managed. Digitally leveraging waste management across Europe
through digital technologies could significantly strengthen the emergence of the circular economy.
● The concrete impact of digital technologies in this area with regard to resource and energy
efficiency as well as other environmental impacts needs to be understood and validated
holistically and more deeply. Specifically, the risk of rebound effects in the economic, social and
environmental areas needs to be analysed and hedged accordingly.
● The effects of digitalisation explored in chapter 6 require a deep and systematic understanding,
especially interdependencies between the different dimensions should be considered.
● Regular technology scouting and horizon scanning for this field should be conducted and should
involve both the circular economy as a whole and the waste management sector.
● The role and functions of the waste management sector in a full-fledged digital circular economy
needs exploration and analysis, as it may change considerably. For example, the need for
compatibility of interfaces should be addressed, but also the role of public waste management
agents in such a system needs investigation.
With the move from waste handling, to a recycling society and ultimately to a resource efficient circular
economy, the role of the policy maker will also change from a controlling function in waste management
to an enabling factor in material management and product policy. Policy actions need to focus on waste
prevention and on responsibility of producers, and this requires a stimulating approach through
communication campaigns for consumers and the promotion of responsibility amongst manufacturers and
industry players. The role of the authority therefore has shifted from command and control to include
much more stakeholder motivation and involvement.
Digitalisation should be seen as a tool to enable these changes. An example could be enforcement of
product and environmental data collection. This data stock can then be used to understand more about
the functionality, gaps and chances of the waste business. Harmonisation of reporting methods would
allow for easier comparison and goal setting in the waste sector. An important aspect as well will be the
Eionet Report - ETC/WMGE 2020/4 54
definition of interfaces between different digital solutions to prevent monopolies and platform businesses
where they are disadvantageous to innovation, progress and economic welfare. Publicly available
interfaces, that make transition from one commercial provider to another possible, help to lower this risk.
The Austrian government, for example, chose to define such standards. And while the role of politics to
set these standards can be debated, policy could at least enable and supervise this process to ensure that
all concerned parties are well represented in defining them.
In general, the field of waste treatment seems to be too heterogeneous with regard to digitalisation to
point out one single strategy. The report shows that there is a spread in digital adoption between private
and public waste businesses, with the private ones being faster in adopting digital technologies.
Investments into digital technologies especially for public waste management may go with investment
cycles and the priorities that are given (or not) to waste management by local authorities. Moreover,
investment costs may be prohibitive for these actors, especially as long as there is no pressure from
competitors or regulation. The introduction of new collection bins, trucks, and so on., will then be
combined with the introduction of sensors, trackers, etc. More investigation into the level of investment
and endowment of digital technologies in European waste management is needed. This may currently be
important, as a window of opportunity for investment is there and especially countries and municipalities,
who are lagging in waste management and circular economy, may use digital technologies for leapfrogging
into a more sustainable regime.
For public actors in waste treatment, the fact that they do not compete with each other can allow for the
joint development of digital solutions. If software is developed specifically for one public player, it should
be made sure that the underlying code is made publicly available so that other actors can use and improve
it, as is the case for many open source projects. Private companies should use digital technologies to
improve recycling and resource use. The (financial) incentives for this will most likely be set by legislation
to achieve the environmental goals set. If our society shifts from disposing waste to using it as a resource,
both private and public waste companies will have to redefine their role transitioning from a disposal
company to a raw material supplier.
Implications for a policy towards digitalising the waste management sector are inter alia:
● Digital technologies can be a huge empowerment for the emergence and creation of a circular
economy, while circular economy may alleviate some challenges put forth by digitalisation.
Political strategies in both directions should hence make use of this mutuality.
Digital development of the waste management sector should thus be endorsed in coordination
with the development of a circular economy as supported by the Circular Economy Action Plan
and the Industrial Strategy. This implies two requirements:
○ Firstly, sorting and recycling undertaken in the waste management sector are vital
ingredients towards a circular economy and hence should be treated as an integral part of
a digital industrial transformation on the systems level.
○ Secondly, on the technological level, this requires suitable interfaces as well as obligatory,
standardised and integrated data flows between sectors and relevant stakeholders of a
circular economy. Ensuring compatibility between different systems can be important
here for several reasons. Inter alia, it maintains competition on the markets and for
technological development, it prevents the dangers of monopolies, and may make
investments more future proof given that compatibility is maintained over time.
1. Digital technologies can become a crucial asset to shift the European waste management sector
towards a sustainable materials management role. They can improve waste collection and
treatment for example through resource and route planning, data analytics, and communication
with citizens, consumers and customers. They can improve recycling on the side of producers
through facilitating use of recyclates, on the side of consumers through enabling better purchasing
and sorting decisions, and on the recyclers’ side by improved waste sourcing. This evolution is in
line with the changing focus from waste treatment to materials management.
2. Digitalisation in waste management and treatment, specifically for public bodies, is mostly in an
innovation phase with some technologies diffusing more broadly. The current situation seems very
heterogeneous in Europe but also within the European nations. Technologies for all steps in the
process exist and all major digital technologies (AI, DLT, Robotics, etc.) are being applied but not as
consistent and integrated systems. New business models as waste trading platforms, waste specific
software suits and business analytics are emerging. The application of digital technologies changes
the cost structure from operations driven to capital driven.
3. There are both drivers and inhibitors of digitalisation in the waste management sector. Drivers are
cost pressure, business models, customer expectations, pull towards Circular Economy, climate
crisis, extended producer responsibility, waste amounts, urbanisation. Inhibitors are lack of digital
literacy, investment costs, security concerns, fear of job loss, missing digital ecosystem.
4. Rebound effects in the economic, social and environmental dimension require constant attention
and adjustment. Digitalisation will enhance productivity and lead to a shift from unskilled to skilled
work. Ensuing effects on the labour market, also the informal one, need to be clarified.
5. The digital transformation of the waste management sector should be aligned and combined with
the plans for and the digitalization of a full-fledged circular economy to ensure synergies and
prevent frictions. The European strategies acknowledge the interconnected challenges and
beneficial synergies between the green and digital transformations, and emphasise the key role of
EU industry for unlocking their potential.
6. Infrastructure such as radio networks and ubiquitous internet access are pivotal for a successful
digital transformation of the waste sector. Many digital solutions rely heavily on connectivity,
network infrastructure, standards and interfaces. These are needed to enable data transmission
and interoperability of different systems and applications. Lack thereof or insufficient
infrastructure hence results in malfunctions, sunk costs and money loss due to inefficiency.
Operations close to borders are of special interest here, since communication infrastructure can
overlap, which may also result in dysfunctionalities.
7. The area is under-researched and many questions are open. Data on a European level is scarce or
missing. Important questions such as future system architecture of a (European) digital waste
management sector and its integration into a broader circular economy as well as into concepts
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European Topic Centre on Waste and Materials The European Topic Centre on Waste and
in a Green Economy Materials in a Green Economy (ETC/WMGE) is a
Boeretang 200 consortium of European institutes under
BE-2400 Mol contract of the European Environment Agency.
Tel.: +32 14 33 59 83
Web: wmge.eionet.europa.eu
Email: [email protected]