Delterra Circular Cities
Delterra Circular Cities
Delterra Circular Cities
Shannon Bouton
President & CEO
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TODAY, THE WORLD’S CITIES ARE
DROWNING IN WASTE...
Overflowing landfills and unmanaged However, cities around the world are
waste are causing public health rising to the challenge and prioritizing
problems and contaminating our their transition from a linear to a circular
land, air, and water – yet we continue economy. Instead of moving in a straight
to produce more waste than ever.5 line from production to consumption to
On land, disposal of waste in landfills disposal, a circular economy involves a
contributes to contamination of soil, loop where, in addition to reducing overall
exposing community members to toxic consumption, production materials
chemicals and heavy metals.6 In the air, come from what would otherwise be
burning of waste releases chemicals like waste. Ideally, once materials enter this
mercury and contributes to a growing loop, they stay within the ecosystem for
number of premature deaths globally as long as possible, rather than adding
from air pollution.7 In waterways such to the dual problems of extracting
as canals and rivers, dumping of waste more resources and managing waste.
contributes to urban flooding, putting Although moving towards a circular
community members’ lives and property economy requires coordinated action
at risk.8 These challenges represent only from stakeholders across society, cities
a subset of the consequences of our have a unique opportunity to make
waste crisis experienced by communities strides towards circularity through their
across the world, yet shed light on what waste management systems.
the future holds if swift action is not
taken. As concerns grow for the health But what specifically can cities do
and safety of the environment and to improve waste management
local communities, cities are looking for performance so they can close the
solutions. loop and move towards a more circular
economy? To better understand how
In response to increasing public communities handle waste today and
awareness of the waste challenge, what it takes to holistically transform
companies and policymakers are these systems, Delterra drew on creative
making commitments to support the solutions from around the world and
transition to a circular economy. In the partnered with local communities
corporate environment, businesses are in Argentina and Indonesia to test
making efforts to redesign packaging system-level solutions. Together with our
and increase recycled content in their partners, we have tested and refined
products.9 From a policy perspective, the core dimensions of successful
regulators across the world are taking integrated waste management. In this
action to minimize plastic pollution and report, you will find deep dives on each
ensure minimum thresholds for usage of the Six Dimensions of Integrated
of recycled materials.10 While these Waste Management, supported by case
changes are beginning to generate studies from Delterra’s work and other
unprecedented demand for recycled relevant work globally.
material, the global recycling and waste
management system is not fully prepared
to meet this demand.11
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THE SIX DIMENSIONS OF INTEGRATED WASTE
MANAGEMENT
GENERATION & COLLECTION, SORTING OFFTAKE &
SOURCE SEPARATION & TREATMENT MARKET DEMAND
• Provision of information to • Waste collection coverage of citizens & large • Offtake of compostable and
encourage recycling, educate generators recyclable materials and/or
and drive behavior change, and • Efficiency of collection routing partnerships to benefit from
communicate impact them
• Sorting infrastructure capacity and productivity
• Effectiveness of citizen participation • Public-Private Partnerships to
campaigns • Facilities that allow for safe and environmentally strengthen and stabilize the
sound disposal of waste (including landfilling) demand for materials
• Targeted efforts to promote large
generator source separation • Tracking and monitoring of waste flows • Adoption of emission standards
PERFORMANCE
DRIVERS
CIRCULAR
ECONOMY
MATURITY
PERFORMANCE
ENABLERS
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The inner ring of dimensions comprises PERFORMANCE DRIVERS, which typically involve more visible and
tangible waste management practices. The outer ring of our Six Dimensions comprises PERFORMANCE
ENABLERS, which are less tangible but form the basis for successful implementation.
To move towards a more circular model, cities must work across all dimensions concurrently and in an
integrated manner. For example, it is not sufficient to work on implementing segregated collection alone
(part of the generation and source separation dimension). Instead, cities must work on introducing an
appropriate segregated collection system and setting up sustainable treatment infrastructure (collection,
sorting and treatment dimension), establishing appropriate offtake markets for recovered materials (offtake
and demand dimension), as well as developing appropriate new bylaws (policies and regulation dimension)
to support segregated collection.
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GENERATION & SOURCE SEPARATION
Convincing households and businesses to correctly separate their waste in accordance
with local waste segregation streams (e.g., recyclable, residual and organic waste) can
significantly help drive the transition to a circular economy. The generation and source
separation dimension includes all communications and education efforts that take place to
change waste disposal habits of community members. In cities with a less developed waste
management system, efforts to target waste generators and incentivize source separation
are likely minimal or non-existent, both for households and businesses. In the best examples,
communities leverage multiple approaches to engage citizens, such as ongoing education
campaigns or digital tool integration, which helps to instill source separation practices as
a norm within the community. Furthermore, communities with mature waste management
programs also rely on targeted efforts to change the behavior of ‘big generators’ (e.g., large
businesses or community organizations), as they often generate a significant portion of the
overall waste stream.
KEY ACTIONS:
• Foster a culture of empowered recyclers
• Aim for new habits, not just awareness
• Engage commercial customers differently from residents
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DELTERRA’S PROGRAM
SITUATION Olavarría is a mid-size Argentinian city of around 120,000 inhabitants. It is clean, well-maintained
and family-friendly, with a modern infrastructure, a very industrial culture and a small-town feel – a
place where neighbors know and recognize one another. Most residents, however, were accustomed
to simply leaving their mixed waste on the curb every day, with recycling rates at less than 1%. When
interviewed, residents said they wanted to do their part to adopt more modern practices, but also
demanded that the municipal government take responsibility for centralizing the collection of
recyclables.
ACTION Delterra, in partnership with the municipality, established GIRO, or Gestión Integral de Residuos de
Olavarría (Integrated Waste Management of Olavarría). To drive recycling participation, we:
• Conducted a three-month research phase using human-centered design, and devised cultural
and behavioral insights that became the backbone of our design process
• Ran a series of five behavior change pilots to identify the most effective interventions that drove
participation at the best possible return on investment
• Developed a resident activation blueprint comprising top-down elements (e.g., mass media
campaigns, social media outreach, community events), digital interventions (e.g., a chatbot to
answer common recycling queries), and bottom-up activity (e.g., door-to-door visits, waste tags
for correct and incorrect separation)
• Supported the city to draft ordinances of municipal solid waste regulations for both households
and big generators, requiring them to separate their waste into three streams and dispose of
each waste stream on the correct pick-up day
• Developed a monitoring and maintenance strategy to track participation levels and detect any
changes in participation trends, with targeted interventions in the case that participation was to
decline, ensuring high participation rates with minimal effort and resources
RESULT Today, among the proportion of households with access to a pilot program of recycling and compost
collection services, nearly 50% support the program and consistently separate their recycling
(participation for compost is closer to 30%). The per household cost of achieving these results was
50% lower in the final pilot compared to our first pilot. Our work in Olavarría cuts across many of our
Six Dimensions and in 2023, collection services are on track to be available to the city’s full population
of 120,000 people.
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GLOBAL CASE STUDY: GENERATION & SOURCE
IMPROVING CITIZEN PARTICIPATION IN
SAN FERNANDO, PHILIPPINES12
SITUATION
The City of San Fernando is one of the busiest cities in Pampanga, a province in Central
Luzon, Philippines. It is divided into 35 villages or barangays and is home to more than
300,000 people, which easily quadruples during daytime.
Waste management in the Philippines is governed by a national law called the Ecological
Solid Waste Management Act of 2000 or Republic Act 9003 (RA 9003), which puts the prime
responsibility of waste management on the barangay, including segregation, collection,
and treatment. Despite a series of trainings for the barangays and the introduction of
supporting business regulation, San Fernando struggled to enforce compliance, with open
waste dumping and burning remaining prevalent, and recycling rates low.
ACTION
In 2011, San Fernando formed a partnership with Mother Earth Foundation (MEF), an
organization that actively promotes Zero Waste. Soon after, when the new administration,
led by Mayor Edwin Santiago, took over in 2013, waste management became a key priority
for the city.
• An intensive public information, education, and communication (IEC) campaign for
residents was launched, including education in schools and businesses
• A novel concept was introduced: a TV show called ‘Win-win for all’. The show goes live
every Friday and is hosted by a local artist. Every episode, the hosts make surprise visits
to unsuspecting households from the week’s chosen barangay to check if they do proper
waste separation, with five winners being awarded PHP 2,000 (USD 39.21) each if they
pass the inspection
• A Plastic-Free Ordinance was introduced in 2014 to phase out single-use plastic bags in
businesses, with enforceable penalties; this alongside the introduction of a policy of ‘no
separation, no collection’ for households and businesses alike, has significantly reduced
waste going to landfill
RESULT
The city has now covered all 35 barangays and has reported 93% compliance with
recycling regulation, with 85 fully functional material recovery facilities (MRFs) located in
barangays, private subdivisions, schools, health care facilities, public markets, and business
establishments. As of 2018, the city’s waste diversion rate rose from 12% to 81%, and they plan
to increase that to 91% by 2025. Furthermore, the city only spends PHP 34.6M (USD 677,404)
annually on waste diversion, compared to PHP 70M (USD 1.4M) in previous years.
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COLLECTION, SORTING & TREATMENT
After waste is generated, the way it gets collected and then further sorted and treated
for composting or sale into recycling markets can make a big difference. This includes how
cities dispose of the waste that is not recycled or composted, such as through a managed
landfill. Municipalities might implement changes in this regard such as introducing a new
collection stream (e.g., recyclables or organics), adding collection locations and frequency,
or improving sorting infrastructure and productivity. Running an efficient collection, sorting,
and treatment operation is critical to economically producing usable recycled material or
compost. The communities with the strongest waste management practices typically ensure
that the system has reliability across needed technology and machinery, consistency of
schedules and expectations, and sufficiency of labor force and system capacity.
KEY ACTIONS:
• Upgrade waste sorting and treatment facilities, and their operations
• Expand service coverage
• Track waste flows to optimize collection routes and monitor system inputs and outputs
• Ensure safe operation of disposal sites
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DELTERRA’S PROGRAM DIGITAL
SOLUTION
SITUATION To date, waste management operations in Bali have been largely informal and fragmented. The
waste management in place today is not a broadly available public service, but is offered as a
paid subscription program at the household level. System records of key metrics such as number
of households serviced and volume of waste collected are seldom maintained, and if so, are done
manually on paper or in notebooks. Additionally, collection and tracking of subscription payments is
highly inconsistent throughout the system, with estimates as low as 30-40% of subscription payments
being collected. This creates a lack of accountability and significantly impacts the revenue stability
of local sorting centers – a critical factor to achieving financial sustainability. This informal system
also contributes to a lack of transparency within the supply chain, ultimately deteriorating system
performance and viability. Working with our partners, Delterra set out to help improve the day-to-day
processes of collection and sortation in Bali.
We wanted to offer the sorting centers in Indonesia (TP3SRs) a simple tool with a big impact – a way
ACTION
to digitize and standardize their data in a simple turnkey solution. To do this, we partnered with waste
management company Bintix to re-design a tool they had built for sorting centers in India. Together,
we customized it for our communities in both Indonesia and Argentina. Thus, our Operations Platform
was born.
The Operations Platform is a simple, easy-to-use solution that improves payment collection, monitoring
of waste input volumes and management of post-sorting material offtake through tracking of:
• Financial activities: the tool allows users (TP3SRs / sorting facilities) to monitor incoming payments
from households, which combine with off-the-shelf accounting tools to ensure that sorting facilities
adhere to their budgets
• Material diversion rates: by enabling users to track incoming volumes, as well as sorted volumes
and offtake, sorting centers and local communities can understand how effectively they are
diverting waste from landfills and open dumping - an important performance indicator for any
sorting center
• Offtake by material type: following sortation, the recyclable materials are typically sold by the
sorting facility to an aggregator. Using the Operations Platform, sorting centers can track what
materials are sold to which offtakers, as well as prices received. This feature supports price tracking,
but more importantly, sets sorting facilities up to leverage material traceability data in the future.
RESULT Since implementation of our selected solutions, participating centers have seen significant
improvements such as:
• Significant decreases in uncollected payments, with routine collection rates of 85%+ every month
in multiple villages
• An estimated 70-80% of waste volumes entering the participating sorting centers are tracked
through the Operations Platform, as opposed to almost zero tracking prior to the platform
implementation
• Offtake volume and price tracking, enabling villages the ability to identify what recyclables are being
returned to productive use, as well as monitor trends over time to support informed decision making
• Up to 9x reduction in time spent doing manual processes such as reconciling cash payments and
deposits at month-end, freeing up staff capacity .
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DIMENSION: COLLECTION, SORTING &
TREATMENT
INNOVATIVE WASTE COLLECTION AT
THE SOURCE IN VIETNAM13
SITUATION
The Mekong River is one of the main entry paths for marine litter, especially plastic waste,
worldwide. Vietnam’s Long An province, in the Mekong Delta near this river, has a majority
rural population of 1.5 million people, 10% of whom live in the capital city of Tân An. The area
has poor or no waste collection systems, lacking the capacity to separate, collect, and
treat waste adequately, which results in the disposal of waste in unsecured dumps.
ACTION
To curb land-based marine litter, the WWF and Tân An City piloted a new collection concept
that would separate and sort waste at the source:
• In August 2020, a decentralized “sorting-at-cart” method was piloted for 425 households
(1,855 residents) during door-to-door collection operations. Waste collectors were
provided with hand-pushed collection carts equipped with tables to sort waste during
collection, with different types of waste being collected on different days of the week
(i.e., organic waste on one day, dry recyclables on another, etc.)
• This “sorting-at-cart” method enabled an immediate check on sorting quality at the point
of collection, greatly improving the material that ultimately gets sorted for recovery. Many
cities use compactor trucks to collect recyclables, and this means that contaminated
waste gets “pressed” together with well-sorted recyclables, ultimately reducing the
amount of waste that can be recovered at the sorting center. With the pilot’s method of
collection, recyclables that have not been well-separated do not end up in the sorting
centers, which results in higher recovery rates and better working conditions for workers
separating the waste
• The method leads to extensive resource recovery and high waste utilization rates, thus
creating high value from the waste
RESULT
Findings in the pilot demonstrated that a labor-intensive, separated waste collection
method, with immediate post-sorting led to collection and recovery rates of over 80% for
organic waste, which makes up roughly half of all waste collected from households. The pilot
also demonstrated the potential for a 50-65% diversion rate from landfill. The separately
collected and immediately sorted recyclables were of high-grade purity and quality. Even
with higher collection costs, the reduction in residual waste being disposed of at landfill led
to reduced total costs due to a decrease in transportation and disposal fees.
The initial pilot was expanded to a further 4,800 households in October 2020 and to the rest
of Tân An city shortly thereafter, with future plans to expand to other towns and districts.
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OFFTAKE & MARKET DEMAND
Waste management success and the transition to a circular economy depend on a city’s
ability to put materials back to productive use. Doing so might require the city to work
together with the private sector (e.g., waste management companies, processors, recyclers)
and the social sector to better link the supply and demand for recyclable materials. With the
increasing global focus on strengthening recycling, new opportunities have opened for cities
to attract funding, expertise, and other support globally. Ensuring that there are strong and
consistent offtake opportunities for recycled content enables further investment in upstream
dimensions of the supply chain, thereby strengthening the full circular flow.
KEY ACTIONS:
• Secure offtake agreements for all compostable and recyclable materials recovered
• Create public-private partnerships to grow demand for recovered materials
• Support creation of ethical and transparent supply chains to help meet the needs of offtakers
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DELTERRA’S PROGRAM
SITUATION Low-value plastics, such as packaging (PP), shopping bags (LDPE), or yogurt cups (PS), have proven
challenging to recycle. In the City of Buenos Aires, these low value plastics make up 20-50% of the
plastic waste collected by the city, yet the majority of that waste is sent to landfills (3,000-8,000 tons
per year).
A disconnect between supply and demand lies at the root of this challenge. Due to their smaller
size, lighter weight and higher level of contamination, more effort is required from waste workers to
separate these materials than other plastic types. Waste workers argue that the market price for
these materials does not justify their separation efforts. Meanwhile, recyclers in Greater Buenos Aires
argue that they have invested in the machines and installed capacity to recycle these low value
plastics yet can’t find sufficient and reliable supply of materials.
ACTION Together with our partners, the Alliance to End Plastic Waste and Amiplast (recycler for LDPE and
PP), Delterra established a productivity improvement program and small incentive fund to boost
the separation and transport of low-value plastics in the 16 sorting centers of the City. Our efforts
targeted three key levers:
• Address productivity bottlenecks. In all sorting centers observed, over 80% of the waste workers
are dedicated to sorting 20% of the recyclable waste in kilograms (albeit highest in $/kg). Through
our initiatives, we incentivized sorting centers to increase the number of waste workers targeting
the most voluminous materials (e.g., low-value plastics) that would otherwise go to rejection waste
• Prioritize volume over quality at the sorting center. Through short term pilots, we tested the
amount that a sorting center can collect if it maximizes volume of LDPE and PP over cleanliness
or quality. To enable maximum recovery of these materials, a team of polymer experts from the
recycler trained waste workers on identifying LDPE and PP, improving their sortation effectiveness.
• Trace data from collection to recycling. Together with Empower.eco, we introduced a digital
solution to trace data from the collection route to the recycler. This can be shared with the brands
that bring the plastics back into productive use. The blockchain system allows for two-way
verification to ensure that data is accurate. Next, we will be tracking QR codes at each step to
facilitate inventory management and planning
RESULT We discovered that although price per kg of low-value plastics is lower than PET and HDPE, the volume
that can be collected quickly makes up for it. At the largest sorting center in Buenos Aires, these
initiatives helped boost volumes recycled by 140%, increasing from 30 to 70 tons of LDPE separated
per month. At the second largest recycler, volumes increased by 50% and could have grown further if
not for limited conveyor belt space. So far, we still require a financial incentive to help demand meet
supply, but over time, we believe this incentive can be phased out by increased synergies of scale
and efficiency.
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DIMENSION: OFFTAKE & MARKET DEMAND
BUILDING AN OFFTAKE MARKET FOR
ELECTRONIC WASTE IN BRAZIL14
SITUATION
In 2019, Brazil was identified as the fifth largest producer of electronic waste globally,
producing more than two million tons of electronic waste per year. At that time, less than 3%
of the electronic waste was recycled and a significant portion of the population had never
heard of waste collection and disposal locations for electronic products. While there may
have been a lot of waste, without the presence of offtakers, there was minimal opportunity
for Brazil to divert this waste out of landfills.
ACTION
In 2020, to address this gap in the waste management system, the Brazilian federal
government:
• Defined standards to enforce their existing National Policy for Solid Waste, requiring
that manufacturers, importers, distributors and resellers of electronics products and their
parts create and implement a reverse logistics system, allowing consumers to return their
electronic waste through collection points specific for e-waste
• Passed a bill that created fiscal incentives for the recycling industry
• Created a support fund (Favorecicle) and an investment fund (ProRecicle) for recycling
projects
• Instituted deductions from income taxes for money spent on recycling projects, with a
limit of up to 1% of total income taxes for companies and 6% of total income taxes for
individuals
In effect, the implementation of this policy and the associated economic incentives requires
that companies be responsible for the waste associated with their products, thereby
creating an offtake market for collected electronic waste.
RESULT
The Brazilian government has set near-term targets for this policy, aiming to have 17% of
electronic products and parts collected and properly recycled by 2025. To date, more than
1,900 collection points have been installed across the country, with more sites anticipated
by 2025 based on the number of inhabitants in each municipality. By 2025, more than 400
Brazilian cities will have electronic waste collection points, enabling citizens to responsibly
dispose of their used electronics, thus minimizing the amount of landfill disposal needed.
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STRATEGY & BUDGET
Municipalities need a long-term vision and actionable strategy to transition to a circular
economy. For example, a city might develop a strategy to increase waste recovery, which
might require sufficient knowledge, infrastructure capacity and personnel to pursue. This
operational planning must be made in parallel to adequate financial planning, considering
most waste treatment infrastructure will have a lifespan of 15-20 years. In the vast majority of
Global South cities, municipal income from waste fees and other waste-related services and
fines does not cover the cost of waste management, making financial planning complex.
Articulating a clear strategy and budget helps to give direction to all system participants,
plus can help to unlock further investment from external sources.
KEY ACTIONS:
• Define your circular economy vision
• Understand your main cost and revenue drivers
• Secure appropriate funding to achieve your goals
• Identify where new technology can help
• Update and revise your strategy and budget as your city’s waste flows change
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DELTERRA’S PROGRAM
SITUATION Olavarría was the perfect pilot city city for our initiative in Argentina due to its size,
political commitment to a sustainability agenda and willingness to invest in the necessary
infrastructure. We had to ensure that the way we designed the whole system — from the
behavior change interventions and collection system, to the operation of the processing
plants — was within the city’s waste management budget and not more than they were
willing to spend to implement the program.
ACTION Delterra and the City of Olavarría co-designed the GIRO – Gestión Integral de Residuos de
Olavarría (Integrated Waste Management of Olavarría) – program in true partnership. Some
of our key strategy and budget design decisions included:
• Decreasing the collection of mixed waste in the residential system from three or six times
per week to two or three so that we could add a once-per-week collection of recyclables
and compostables
• Separating the residential and commercial systems, and proposing a big generator fee
that would cover the higher proportion of waste generated, thus covering the increase
in collection costs and part of the operating expenses of the sorting and composting
plants
• Including source-separated collection in three streams in the new waste management
RFP for the city and supporting the city to draft ordinances for approval by council versus
the rotating position of Mayor, ensuring the system would be embedded in the city for
the long term (a waste management contract is seven to ten years and changing a city
ordinance entails a complex process)
• Deciding to RFP the management of the sorting and composting plants, considering
the city’s capabilities and willingness to operate a plant themselves. After researching
different management models and visiting many plants across Argentina, we developed
a checklist of requirements for the management model such as productivity, costs,
environmental goals, municipal leverage, or social goals. Based on this checklist, we
concluded that contracting a private operator was the best long-term solution, both for
municipal financial health and for their management capabilities
• Ensuring that our day-to-day work considers that every initiative we launch must
eventually be led by the city staff on their own, by working closely with the local team
and building capabilities and team governance in parallel
RESULT Olavarría´s Municipality has launched a series of public enablers to embed GIRO principles
in the waste management system, ensuring a roadmap for success and the financial
balance to secure necessary resources. This set of products include the long-term sorting
and composting infrastructure, the public service´s contracts, and the legal tools to promote
and enforce the system.
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DIMENSION: STRATEGY & BUDGET
A STRATEGY FOR TRANSFORMING WASTE
MANAGEMENT IN CURITIBA, BRAZIL15
SITUATION
Curitiba, Brazil, experienced large population growth from 150,000 people in 1940, to
almost two million today. Growth was uncoordinated and included favelas (or slums),
where ~10% of the population lives. Large conventional collection trucks could not access
narrow streets in the slums. The city could not afford new trucks and routes for separated
collection. As this rapid growth impacted many aspects of life in Curitiba, the community
worked to develop a master plan in the 1960s, which included the important aspect of
waste management strategy.
ACTION
Through strong planning and long-term community engagement, Curitiba created a
cohesive strategy to become the most sustainable city in Brazil. Born from this strategy,
Curitiba’s innovative waste management approach was launched, which included:
• Introduction of different collection routes for different streams
• ‘Trash That Is Not Trash’ pilot program to test trash-for-transport theory at small scale
• ‘Green Exchange’ behavior change program, which offers community members transport
passes in exchange for collected recyclables
• Strong focus on communications and consumer education (e.g., classes and
demonstrations) to support incentive programs
• Increase in collaboration with and recognition of the informal sector involved in waste
management
• More material recovery facilities (MRFs) that are strategically linked to collection routes
RESULT
Today, segregated collection is available in almost the entire city, contributing to citywide
recycling rates of 20%. 500,000 tons of PET flakes are produced for recycling per year.
Furthermore, 40 waste cooperatives were integrated and workers are remunerated based
on recycling yield, creating 2,500+ formal jobs.
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POLICIES & REGULATION
Related to strategy, municipalities should consider circular economy policies (e.g., creating
legal enforcement mechanisms for source separation, segregated waste collection streams)
to underpin the system and support ongoing improvements. Implementing these policies
may involve new regulations or more regulatory enforcement. However, municipalities have
varying levels of regulatory control. Some cities may be able to pass more comprehensive
waste management legislation, whereas other municipalities may be more dependent on
regulation at the federal or state/provincial level. Regardless of the level where the policy is
implemented, public institutions’ support of a strong waste management system is a critical
unlock to enabling the three performance drivers. For example, governments can leverage
policy interventions to help create strong incentives for material offtake, driving demand and
supporting system economics.
KEY ACTIONS:
• Establish standards to reduce GHG emissions and other environmental impacts from waste
• Orchestrate waste policies and regulations to incentivize circularity
• Ensure sufficient resourcing for enforcement and monitoring of regulations
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DELTERRA’S PROGRAM
SITUATION Bali residents, tourists and organizations generate 1.6 million tons of waste per year, of which
303,000 tons is plastic (19.6% of total waste).16 Most communities in Indonesia lack access to
effective waste management systems, leading to widespread dumping and burning of waste,
with little to no recycling. To combat this crisis, the Indonesian government’s environment
agency introduced Indonesia’s National Action Plan on Marine Plastic Debris, a commitment
to reduce ocean plastics by 70% by 2025. Delterra partnered with village leaders and local
communities to develop a meaningful waste management strategy that handles the end-
to-end waste stream.
ACTION Our Rethinking Recycling program catalyzes the development of business models and
operations for waste management stakeholders that are necessary for the sustainable
enforcement and enaction of regulations on source separation. In our pilots in Denpasar, we
worked with different stakeholders such as local sorting facilities (TP3SRs), waste collectors
and community educators to build waste management operations that supported existing
policies on source separation and enabled access to services for more residents. We did so
by:
• Scaling up services to ensure that more communities have access to waste management
• Building operating models that integrate existing infrastructure
• Improving collection fee payment rates to ensure the operation is financially sustainable
in the long run
• Improving the operators’ financial literacy
RESULT We have reached participation rates of up to 80% in our first cohort of six villages in Denpasar,
through the combination of bottom-up education and top-down regulatory enforcement.
In addition, these villages have increased their spend on waste management by 60% year
on year since the program was launched. At the national level, the government has unlocked
USD 7M in capital funding to build additional waste management infrastructure, as well as
putting top-down pressure on local governments to speed up the transformation.
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DIMENSION: POLICIES & REGULATION
USING POLICY AND REGULATION TO
DRIVE ZERO WASTE TARGETS IN SAN
FRANCISCO17
SITUATION
San Francisco is a culturally diverse city on the west coast of the USA, with a population of
over 800,000 inhabitants (as of 2021). Since the turn of the millennium, the city has been
committed to an ambitious zero waste agenda.
ACTION
Regulation has played an important part in driving the city’s successes in waste management:
• In 2009, the Mandatory Recycling and Composting Ordinance was passed, requiring all
residents to separate recyclables, organics, and residual waste - this was the nation’s
first mandatory composting law and is enforced through penalties to businesses that fail
to comply
• In 2018, the Commission on the Environment also adopted a resolution outlining the
Department of the Environment’s commitment to racial equity and announcing its Racial
Equity Initiative. This transformed source separation educational outreach by redesigning
materials to use images and provide Chinese, Spanish, and other language translations.
Customer service is available in almost any language. Waste management services
were also broadened, with a range of bin sizes and frequency of collection options being
made available
• San Francisco also has a unique long-term refuse (recyclables, compostables, and
residual waste) ordinance where the city sets collection rates. This ensures consistency
and fair pricing in waste management services. It also provides the option for behavioral
nudging. Initially, trash collection rates were set much higher than those for recycling and
compostables (although rates are more comparable now)
RESULT
In 2002, San Francisco adopted a goal of 75% diversion by 2010; a goal that it exceeded two
years early, soon recovering over 80% and cutting its disposal in half. In 2018, San Francisco
updated its zero waste commitments to reducing solid waste generation 15% and disposal
to landfill or incineration again 50% by 2030. San Francisco sends less trash to landfill than
any other major US city.
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CAPABILITIES & PARTNERSHIPS
Having sufficient staff and distributing talent strategically can help municipalities develop
policies, enforce regulation and take other needed steps to improve waste management.
Municipalities also often benefit from forming partnerships, such as resource and knowledge-
sharing programs with other governments, as well as private-sector entities and civil society.
In an ideal waste management system, stakeholders should have clearly defined partnership
standards, with a joint strategy, and there should be a clear development pipeline of talent
to sustain the system over a long-term time horizon.
KEY ACTIONS:
• Embed circular economy specific KPIs in municipal departments
• Develop circular economy capabilities across waste management stakeholders
• Incentivize and empower waste workers to keep improving the system
• Broker effective partnerships between formal and informal waste actors
24
DELTERRA’S PROGRAM
SITUATION Most cities in Argentina have a formal waste collection service with unionized workers. In
addition to this, the country has long had marginal numbers of “cartoneros”, or informal
waste collectors that have historically picked cardboard from street bins to sell for recycling
as a means for living.
Following the 2001 economic crisis, the number of informal cartoneros working on the streets
and in landfills skyrocketed. The informal workers organized themselves into cooperatives to
benefit from synergies of scale and management. These cooperatives have since been able
to collaborate with some local governments, for example, to expand the types of materials
they pick (thereby helping some cities with recycling collection) in exchange for benefits like
income subsidies and personal protective equipment.
ACTION As part of the process of social and economic integration of Barrio Mugica into the rest
of Buenos Aires, the city wanted to create initiatives to drive greater economic inclusion
alongside the end goal of improving waste management and increasing recycling rates in
the neighborhood. To do this, we:
• Partnered with the city and the 13 active labor cooperatives in Barrio Mugica to establish
recycling and composting services
• Worked alongside the 13 cooperatives to formalize the labor conditions of waste workers
in the Barrio, 67% of whom are women
• Provided training or upskilling for over 400 co-op workers in three stages to enable them
to provide education on waste separation and recycling, and to deliver waste collection
and sorting services for the Barrio community
RESULT This led to the diversion of 510 tons of materials from landfills, of which, 340 tons was of
recyclables (over 15% of dry recyclables generated in the area) and 170 tons was of organic
materials. Workers’ salaries were improved by about 10%, driven by the proceeds from the
sales of recyclable materials, as well as the formalization of their employment to ensure they
have health benefits and job stability.
23
GLOBAL CASE STUDY
PARTNERSHIPS FOR LOCAL CAPABILITY
BUILDING IN SOUTH AFRICA18
SITUATION
Informal waste pickers are integral to recycling in South Africa, collecting 80-90% of post-
consumer packaging and paper from the waste stream, but were not formally recognized
by the municipalities. Furthermore, there was also no waste collection strategy for informal
settlements. From 2015-2017, Oxfam Italia, the Ekurhuleni Metropolitan Municipality in
South Africa, the City of Johannesburg and a number of other Italian and South African
governmental partners embarked on a project to improve waste management in an area
of Ekurhuleni, while also creating local job opportunities for unemployed people. The project
focused on capacity building for the local government, as well as local waste pickers
and cooperatives.
ACTION
The project piloted an improved waste management model in three areas of Tembisa,
Ekurhuleni by:
• Working with partners to change a by-law which outsources waste collection to
cooperatives and/or small enterprises, rather than solely establishing private provider
companies
• Providing capability-building with three local cooperatives and building new infrastructure
for waste collection and sorting for the cooperatives
• Capability-building with Ekurhuleni Metropolitan Municipality officials, such as improving
knowledge and competencies of environmental issues, the green economy and waste
management
• Increasing local community awareness of the value of recycling, both from an
environmental and social point of view
RESULT
Overall, the efficacy of waste collection in Tembisa increased significantly. In the 12 months
before the pilot project was introduced, the cooperatives collected 296,317 tons of waste.
However, after only six months of the pilot project, the cooperatives had collected 210,009
tons of waste. Thus, the cooperatives collected more than 70% of the prior year’s waste
in half of the amount of time. The local municipality continues to work with Oxfam South
Africa and other partners, multinationals (including Unilever), and private corporations to
scale capacity building with cooperatives, among other initiatives. To date, 66 recycling
cooperatives and small enterprises have been supported to establish the Ekurhuleni Waste
Management Association.
24
SIX DIMENSIONS IN ACTION
To make the framework more actionable for cities, we developed a set of 80 indicators that span the Six
Dimensions with the goal of helping cities to identify the gaps in their waste management systems. We then
compiled these indicators into an aggregated “waste management index”, with five maturity levels ranging
from “incipient” to “great”, to assess where cities are on their journey.
Waste management The city has The city has basic The city enjoys The city has a world-
in the city is largely rudimentary waste waste management, reliable waste leading circular
not managed with management with and the circular management, and economy program
limited coverage of some emerging economy is the circular economy with more than 40%
collection, sorting efforts to improve the beginning to grow is strengthening with of dry materials
and recycling circular economy with basic recycling ongoing recycling recycled and full-
and unmanaged underway scale composting
dumping
Ultimately, defining each dimension across the various maturity levels provides cities with a clear progression
path for each dimension. Furthermore, we have defined “critical path” steps for improving across each
dimension. While there may be other activities that take place in each dimension, the activities outlined
below have been identified as most foundational to a strong integrated waste management system, and
therefore where priority attention should be directed.
25
SIX DIMENSION ACTIVITIES BY WASTE MANAGMENT INDEX MATURITY LEVEL
• Mature markets
• There is a sustainable
• Multi-year for all materials
market for most of
• Most sales are informal • There is a market for agreements between which contribute to
the materials that are
and not tracked some materials buyers and sellers in operations innovation
recovered
Offtake & Market • There are no known • Formalized place, but without city • Materials can
Demand participation • Regular meetings
material buyers, and relationship with be digitally and
are organized at
no formal relationships known buyers and • Most sales are confidentially tracked
which the majority of
in place sellers formalized, with along the value chain
material offtackers are
several bases of sales (from collection to final
represented
buyers)
NOTE: The full self-assessment tool for will be published on the Delterra website in Spring 2023, please visit Delterra.org to learn more.
28
DELTERRA’S PROGRAM
SITUATION When Delterra first began working with the city of San Carlos de Bariloche (“Bariloche”) in
2021, recycling rates were less than 1%, and CNN had declared the landfill as one of the
50 largest garbage dumps globally.19 To improve the situation in Bariloche and increase
circularity, we knew that our approach had to go beyond simply establishing new waste
disposal sites or methods. Instead, we leveraged Delterra’s integrated approach to assess
and address all Six Dimensions of Integrated Waste Management.
ACTION To gain understanding about the state of waste management in Bariloche, we used the Six
Dimensions Assessment to:
• Diagnose the current situation through waste and cost flow analyses, site visits,
performance benchmarks, community engagement and focus groups
• Identify lagging dimensions with high potential for improvement and design solutions to
address these areas, including:
• Generation & Source Separation: Citizen and big generator engagement and activation
campaigns
• Collection, Sorting, & Treatment: Operational and infrastructure improvements, such as
streamlining collection routes, introducing pruning waste collection, upgrading sorting centers
and planning for a managed landfill
• Capabilities & Partnerships: Establishment of formal relationships with informal waste workers
RESULT Following the pilot period for these programs, we observed clear improvement across
multiple dimensions, including:
• Generation & Source Separation: Doubled recycling rates of citizens in two pilot areas,
with plans to scale to up to half of Bariloche neighborhoods by end of 2023 and improve
MSW recycling rates from 1% to 10%.
• Collection, Sorting, & Treatment: Launched a big generator collection route that engages
20 businesses, with plans to scale collection from 60 tons per year to 600 tons per year
by the end of 2024
• Collection, Sorting & Treatment: Developed a renovation and capacity expansion plan
for Bariloche’s sorting center to support increased material processing, with changes set
to take place by mid-2023
• Capabilities & Partnerships: Official recognition of the waste worker group ARB as a
cooperative, including agreement to a productivity-based contract with the city
Following the success of our pilot programs, we are now scaling these changes city-wide. While these
changes are not the only actions needed, they are the critical first steps on Bariloche’s path towards a
“great” (and circular) integrated waste management system.
27
CONCLUSION
Improving waste management performance is complex and takes time. By developing
the Six Dimensions of Integrated Waste Management framework, we hope to provide a
practical way for cities to think about improving their overall waste management system.
Examining the case studies included in this report, we have identified two tips to help cities
implement the necessary changes across the Six Dimensions.
Improvements do not come for free, and many cities will need to consider where the
funds for these changes will come from. One solution to this is tackling existing system
inefficiencies. Interventions that address inefficiencies or financially wasteful practices can
pay for themselves or even generate ongoing cost savings. For example, idle capacity
in material recovery facilities (MRFs) can be put to use if more residents are activated
to source separate their recyclables and organics, thereby increasing the amount of
material sorted at the MRF and sold for revenue. Costly transporting and landfilling of
organic waste can instead be composted and sold closer to the source. In geographies
where waste management is not covered by taxes, more convenient payment options
for waste collection customers can help boost revenue while also increasing customer
satisfaction and recycling participation. In combination, these kinds of actions can help
cover costs of implementing changes while increasing the productivity of the overall
system.
There is no one size fits all in program design. As a result, it can help to pilot solutions
in representative neighborhoods before rolling out to the whole city. Most interventions,
even holistic ones that address multiple or all of the Six Dimensions together, can be
piloted in smaller scale trials. In a more controlled setting, cities can learn what works
and gather data on the impact of a particular approach before broad deployment
in the community. Correcting inconsistencies across different dimensions is also more
manageable at pilot scale: for example, a MRF may need to realign waste worker
incentives to deliver what specific materials new offtake buyers need, or collection trucks
may need more capacity as a source separation mandate goes into effect. Testing these
changes at a pilot scale can validate that the program delivers the anticipated impact
prior to taking on the full investment risk of a city-wide program.
As highlighted by the case studies shared, cities that significantly increased recycling rates
were able to do so by focusing on bottlenecks in particular dimensions and introducing
targeted solutions based on their level of maturity. Unfortunately, we found no “silver bullets”
for cities to boost recycling rates, nor “leapfrog” solutions to skip steps. The key for any city is
to identify which specific improvements create cascading benefits for the rest of the system.
Over time, improvements across each of the Six Dimensions will create a well-functioning,
integrated waste management system – a critical enabler for the circular economy.
30
As we continue to expand the number of communities we work with in
our Rethinking Recycling program, we continue to hone our means of
assessing waste management systems across these Six dimensions.
We believe that our commitment to driving end-to-end solutions by
integrating with local governments and community leaders ensures
long-term success for our programs across both performance drivers
and performance enablers, and is why we are uniquely positioned to
drive real and long-lasting impact.
ABOUT DELTERRA
Delterra is a global environmental NGO on a mission to solve the world’s
most complex systemic environmental challenges—on the ground, at
scale, and with urgency. Founded by McKinsey & Company, Delterra uses
a systems change approach to redesign entire ecosystems by developing
innovative, scalable solutions for the good of people and the planet.
Learn more at: https://www.delterra.org and connect with us on
LinkedIn | Facebook | Twitter | Instagram
29
ENDNOTES
1 https://archive.epa.gov/epawaste/nonhaz/municipal/web/html/health.html
2 https://www.reuters.com/business/environment/landfills-around-world-release-lot-methane-study-2022-08-10/
3 https://www.ccacoalition.org/en/activity/open-waste-burning-prevention
4 https://www.unep.org/interactives/beat-plastic-pollution/
5 https://www.worldbank.org/en/topic/urbandevelopment/brief/solid-waste-management#:~:text=With%20
rapid%20population%20growth%20and,impacted%20by%20unsustainably%20managed%20waste.
6 https://www.nature.com/articles/s41598-021-94616-4
7 https://archive.epa.gov/epawaste/nonhaz/municipal/web/html/health.html
8 https://www.witpress.com/Secure/elibrary/papers/FRIAR12/FRIAR12016FU1.pdf
9 https://ellenmacarthurfoundation.org/global-commitment-2022/overview
10 https://www.euractiv.com/section/energy-environment/news/eu-set-to-adopt-mandatory-recycled-content-
targets-in-new-packaging-law/
11 https://www.greenbiz.com/article/recycled-plastic-theres-market-demand-wheres-supply
12 Zero Waste World San Fernando case study, https://zerowasteworld.org/wp-content/uploads/San-Fernando.pdf
13 Separate waste collection at source in Vietnam, https://www.researchgate.net/figure/Type-of-collection-cart-
used-in-the-pilot-project-C-WWF-Viet-Nam_fig1_352120459
14 https://www.trade.gov/market-intelligence/brazil-logistics-system-consumer-electronics
15 https://www.thegeographeronline.net/uploads/2/6/6/2/26629356/151_sustainable_city_management_curitiba.
pdf; https://www.plasticexpert.co.uk/sustainable-recycling-curitiba/
16 https://www.balipartnership.org/en_gb/about/
17 United States Environmental Protection Agency, San Francisco case study, https://www.epa.gov/transform-
ing-waste-tool/zero-waste-case-study-san-francisco
18 https://www.oxfamitalia.org/wp-content/uploads/2018/03/OXFAM_waste-management-and-capacity-build-
ing_21.01.2018.pdf
19 https://cnnespanol.cnn.com/video/impactante-montana-basura-ecologia-bariloche-argentina-perspectiv-
as-buenos-aires/
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