Carton Recycling Investment Programme

Share:
Carton Recycling Investment Programme
Background

In Ho Chi Minh, Vietnam, a carton recycling operation, aims to collect and recycle 3,000 tons of discarded beverage cartons. Tetra Pak and Circular Action are implementing the program with the help of the Packaging Recycling Organization (PRO) Vietnam, a partnership of Vietnamese consumer goods and packaging companies. The program will last from April 2022 until March 2023.

The program intends to work with informal waste collectors to collect beverage cartons and resell them to Dong Tien Paper Factory, who would recycle them into new products. In addition, Tetra Pak has invested 1.2 billion EUR in the factory to increase beverage recycling capacity by early 2022.

The program began by providing incentives to larger waste aggregators, and local pickers profit from greater prices paid for carton materials. Presently, vehicles travel throughout the city advertising fixed rates at which waste collectors can sell these beverage cartons. The program uses the Circular Action KOLEKT App to track the collection of these cartons, adding a digital component to the program.

Results Achieved

The project has currently purchased the first of ten vans that will visit Ho Chi Minh City to collect beverage cartons. Trash pickers were no longer required to deliver cartons to directly to aggregators, allowing the potential daily collection capacity to grow from 150kg to 837kgs per day.

With the introduction of the vehicles, the number of cartons collected gradually increased. For the first week, each load per truck weighed only 60 to 80 kg. After two weeks, the figure had risen to 200-300 kilos each load. This also suggests that waste collectors are now attempting to gather and flatten more beverage cartons, thereby increasing the amount the truck can carry each time it arrives.

The project expects to impact more than 200 waste pickers in earning additional income and 3000 tons of used beverage cartons recycled.

Challenges and Lessons Learned

The volume of beverage cartons consumed but not recycled is a major issue in Vietnam. In the last ten years, the volume of milk consumed in the country has nearly doubled, thus the amount of milk cartons produced by Tetra Pak has also increased. However, numerous layers of different materials make up these beverage cartons and are extremely difficult to recycle. Because these Tetra Paks are cheap in value, waste collectors do not collect them, and they end up mismanaged and in the water. The program aims to begin recycling these beverage cartons, while also providing extra pay to waste pickers who previously could not earn from collecting them.

A challenge faced by the program was transitioning from a top-down to bottom-up approach due to local considerations. Initially, subsidies were provided to local waste aggregators. However, local aggregators did not fairly distribute the subsidy upstream to collection centers and waste pickers. Despite the subsidies, these local aggregators were not going out of their way to collect additional carton beverages. As a result, the project shifted tactics to a bottom-up strategy, with trucks driving around the city directly collecting material from scavengers. They also offered a financial incentive to flatten the cartons before selling them, enabling for more cartons to be collected per load.

Replicability

The program had to be adaptable to local circumstances and lessons were learned while implementing their initial plans.  They were able to develop and apply another approach that brought them closer to their goal of increasing the number of carton beverages recycled while generating additional income for local waste pickers. It is a lesson for others wishing to implement an initiative: learn the requirements of the community and be ready to alter the programme to better match local circumstance. Lessons can be learnt from this program in being willing to change strategies during the implementation stage in order to achieve the goal.

Explore More

The Plastic Flamingo (The Plaf)

The Plastic Flamingo (The Plaf)

Philippines

The Plastic Flamingo is a social enterprise aimed at collecting plastic waste and recycling it into construction material. Based in the Philippines, the Plastic Flamingo, or the Plaf, collects and sorts plastics before shredding the plastic and transforming it into planks and posts. These planks, also called eco-lumber, is being used to make fencing, furniture, and even shelter, as the Philippine population suffers from recurring damages from annual typhoons and floods. 

The Plaf has several drop-off points mainly in Metro Manila, with a few in the cities of Cebu and Davao. These are areas where the public can drop off their plastic waste. The company then weighs, cleans, and sorts the plastic, before being molded into eco-lumber or plastic pellets, depending on the project.

The Plaf also offers itself as an Extended Producer Responsibility Partner, wherein large enterprises that produce plastic waste create a framework to prevent waste leaking into the environment, as stipulated in the Extended Producer Responsibility Act of 2022. They partner with companies to upcycle their plastic wastes. Some past partners include World Wide Fund for Nature Philippines, Tetra Pak, and Coca-Cola Far East Limited Philippines, Inc.

Project STOP

Project STOP

Indonesia

Project STOP (Stop Ocean Plastics) initiated in Indonesia aims to create a low-cost, circular, replicable and zero-leakage waste management system in collaboration with households, institutions, local initiatives and informal waste workers. It was piloted in April 2018 in Muncar, Indonesia and further expanded to Jembrana, Pasuruan and Banyuwagi. 

The project was introduced to address the issue of open and haphazard disposal of waste in the absence of a formal waste management system. It works in alignment to the principle of self-sufficiency and empowers locals to manage their own waste while enabling them to generate profit from it to make the working modality financially sustainable. It supports the local implementation through investments, technical expertise, waste system design, project management, capacity building and recycling/ reprocessing valorisation. 

The primary founders of the initiative are SystemIQ, an ecological business consulting organisation, and Borealis, a plastic production company. The Norwegian Ministry of Foreign Affairs, NOVA Chemicals, Nestle, the Alliance to End Plastic Waste, Bourouge and Siegwerk, Veolia, Sustainable Waste Indonesia, Schwarz and HP are other integral partners. The Ministry of Environment and Forest, Ministry of National Development Planning, Ministry of Public Works and Public Housing and local governments of the project sites also provide domestic support. 

It has four main objectives:

  • to achieve zero waste leakage into the environment through regular residential and industrial waste collection
  • create circular system by generating opportunities that create value from waste
  • achieve economic sustainability through local job opportunities
  • create conducive environment for tourism and fishing to flourish locally
MoE Regulation No. 13/2012 on Guideline for Implementation of 3R through Waste Banks

MoE Regulation No. 13/2012 on Guideline for Implementation of 3R through Waste Banks

Indonesia

The concept of waste bank emerged in Indonesia with the introduction of the 2008 waste policy and­ materialized into action through the Ministry of Environment Regulation 13/2012. It provides a comprehensive framework for the establishment and development of waste banks in 250 cities across the country. The primary focus of the waste banks is to serve as a collection point for waste materials that have further prospects of recycling and reuse. 

The 13/2012 regulation specifies the requirements, mechanism and operation guidelines for waste banks, recognizing their integral role in application of the 3R principles and the extended producer responsibility (EPR). It shifts from the traditional collect-transport-dispose approach to a more sustainable model focused on waste segregation and recycling of valuable waste. 

Waste banks are typically run by the community with technical assistance by the central and local governments. In other cases, it might also be initiated by the local governments or the private sector under their corporate sector responsibility (CSR) programs. In general, they function as a collection point where residents can deposit their waste. The sorted waste is eventually purchased by junk collectors for further processing and the depositors receive nominal cash as an incentive in return of their waste. 

Overall, the policy sets waste banks as crucial intermediaries in waste management that act as buffer points for collection of recyclables rather than allowing them to end up in landfills. 

Plastic Credit Exchange

Plastic Credit Exchange

Philippines

Plastic Credit Exchange (PCX) is a project based in the Philippines that has been designed to combat plastic pollution and create sustainable practices while promoting a circular economy. The coverage area mainly includes Metro Manila, Cebu, and Davao. The main stakeholders are the businesses, governmental agencies, and communities that have established and operate plastic collection and recycling centers to help manage the plastic credit system. It is also to raise awareness on plastic pollution and sustainable practices.

The PCX works with businesses to calculate their plastic footprint, feasible strategies to reduce plastic consumption, and identify a baseline. Based on that baseline, the PCX then aids the business in purchasing plastic credit to offset their plastic production, ensuring they meet the target reduction. These plastic credits are then used to fund research and development for eco-friendly alternatives for community waste management projects.  The PCX has implemented technology solutions such as the plastic tracking and traceability system where it tracks and monitors the plastic waste through its lifecycle to ensure transparency and accountability.

Government agencies like Department of Environment and Natural Resources (DENR) and Environmental Management Bureau provides guidance and coordination to the PCX. Technical expertise and funding are also provided by the UNDP and ADB.