how to manage these annoying recurring cost?
TRANSCRIPT
Cost structures of SWMDr.-Ing. Wolfgang Pfaff-Simoneit Former
Principal Technical Expert for Solid Waste Management KfW
Entwicklungsbank / KfW Development Bank
How to manage these annoying recurring cost? Part 3: Sources and instruments for cost recovery
2019 Waste Finance Academy Accra / Ghana June 2019
Bank aus Verantwortung
Dr.-Ing. Wolfgang Pfaff-Simoneit Former Principal Technical Expert for Solid Waste Management KfW Entwicklungsbank / KfW Development Bank
How to manage these annoying recurring cost? Part 1: Cost and cost structures of SWM systems
2019 Waste Finance Academy Accra / Ghana June 2019
Dr.-Ing. Wolfgang Pfaff-Simoneit I Cost and cost structures in SWM
Waste Management processes and technologies
Quelle: Faulstich 2008
Dr.-Ing. Wolfgang Pfaff-Simoneit I Cost and cost structures in SWM
GDP [EUR /cap/year] < 2.000 [EUR/Mg]
2.000 – 4.000 [EUR/Mg]
4.000 – 6.000 [EUR/Mg]
25.000 – 30.000 [EUR/Mg]Method / Technology
Source Separation of dry Recyclables 20 - 30 25 - 35 35 - 45 60 - 70
Sorting of high caloric Fractions / RDF 20 - 30 25 - 35 30 - 40 50 - 60
Composting of separately collected Bio- waste
20 - 30 20 - 30 20 - 30 35 – 50
Intensive Rotting / Fermentation of Bio-waste 50 - 60 50 - 60 50 - 60 70 - 90
Simple MBT 20 - 25 20 - 30 20 - 30 35 - 50
MBT intensive Rotting or Fermentation 40 - 50 40 - 50 45 - 55 75 - 90
MBS / MPS 45 - 55 45 - 55 45 - 55 65 - 80
Waste to Energy Plant 65 - 80 65 - 80 70 - 85 90 - 120
Thermal Waste Treatment 70 - 90 70 - 90 75 - 95 110 - 140
Sanitary Landfill 10 - 20 12 - 22 15 - 25 40 - 60
Full cost of SWM technologies as a function of GDP
4© UNIVERSITÄT ROSTOCK | AGRAR- UND UMWELTWISSENSCHAFTLICHE FAKULTÄT | Dr.-Ing. Wolfgang Pfaff-Simoneit | Cost and cost structurtes in SWM
Dr.-Ing. Wolfgang Pfaff-Simoneit I Cost and cost structures in SWM
Waste management strategies
Legende
treatment Co-
Waste Type A2
Waste Type A3
Waste Type A4
Waste Type B1
Waste Type B2
Waste Type C1
Waste Type C2
0,00
20,00
40,00
60,00
80,00
100,00
120,00
140,00
160,00
BAU Ia Ib Ic Id IIa IIb IIc IId IIIa IIIb IIIc IIId IVa IVb IVc IVd
Erlöse Wertstoffe Erlöse Energie Erlöse Zertifikate Kosten abz. Erlöse
Waste Type B1
Cost and potential cost coverage
7© UNIVERSITÄT ROSTOCK | AGRAR- UND UMWELTWISSENSCHAFTLICHE FAKULTÄT | Dr.-Ing. Wolfgang Pfaff-Simoneit | Cost and cost structurtes in SWM
Diagramm1
BAU
BAU
BAU
BAU
36
12
0
0
33.6
14.4
0
0
Ia
Ia
Ia
Ia
34.0386201205
19.9890832795
0
7.3775
28.3383034646
23.9868999354
0
9.08
Ib
Ib
Ib
Ib
25.8240275008
26.71512042
2.5729624792
4.16
16.9480409377
32.058144504
5.1459249583
5.12
Ic
Ic
Ic
Ic
47.7818687208
28.3145620636
1.4841453131
4.16
39.6748109949
33.9774744764
2.9682906262
5.12
Id
Id
Id
Id
31.8304604155
29.6627290973
16.8120857672
4.16
19.9917649022
35.5952749168
21.758235461
5.12
IIa
IIa
IIa
IIa
28.7207658385
21.9706705615
0
10.06
22.3166317262
26.3648046738
0
12.07
IIb
IIb
IIb
IIb
23.4830828289
25.7014922829
1.7955247882
8.175
14.9722595841
30.8417907395
3.5910495764
9.75
IIc
IIc
IIc
IIc
42.1882342665
28.645504616
1.2698191662
8.175
33.614314177
34.3746055392
2.5396383325
9.75
IId
IId
IId
IId
29.436076653
28.6138151508
15.8985733762
8.175
17.9922807366
34.336578181
20.0446062624
9.75
IIIa
IIIa
IIIa
IIIa
25.6958630558
25.3766837442
0
11.824
18.022526307
30.452020493
0
14.422
IIIb
IIIb
IIIb
IIIb
23.8576056244
27.4745774874
7.9670271882
9.939
13.3755816054
32.9694929849
10.7911357097
12.102
IIIc
IIIc
IIIc
IIIc
29.4873710161
27.7493790277
8.7573816962
9.939
18.8186609377
33.2992548332
11.7132159691
12.102
IIId
IIId
IIId
IIId
36.7916854431
30.6441927907
6.6245578638
9.939
26.9594002211
36.7730313488
8.1650045277
12.102
IVa
IVa
IVa
IVa
80.8052497116
25.0566502884
29.4756
2.4375
70.318819654
30.067980346
34.3882
3
IVb
IVb
IVb
IVb
75.3724730798
26.5173100869
21.5677168333
8.175
64.8993915902
31.8207721043
25.1623363056
9.75
IVc
IVc
IVc
IVc
57.869985083
25.3341527504
16.7333621667
9.939
47.8512608384
30.4009833004
19.5222558611
12.102
IVd
IVd
IVd
IVd
58.4426774785
26.5279579548
22.9048645667
9.939
47.1566084597
31.8335495458
26.7223419944
12.102
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Ib
Ic
Id
IIa
IIb
IIc
IId
IIIa
IIIb
IIIc
IIId
IVa
IVb
IVc
IVd
Basisszenario
o
o
2019 Waste Finance Academy Accra / Ghana June 2019
How to manage these annoying recurring cost? Part 2: Minimising collection and disposal cost
Maximising waste recovery and revenues
Dr.-Ing. Wolfgang Pfaff-Simoneit I Maximising waste recovery and revenues
Conclusions and outlook
› Separate collection systems developed in high-wage countries less suited for low-wage countries
› Integration / inclusion / cooperation with informal sector required › Appropriate collection systems offer
- comprehensive employment opportunities - at reasonable cost
Conclusions
Open questions › Can social acceptance be achieved for the proposed collection concept
› Development of appropriate organizational models
› Development of appropriate fee charging systems
› Verification of the theoretical performance and cost figures in pilot projects
9
Proposed labour-intensive separate collection system Collection of recyclables and waste at the front-door
10
Proposed labour-intensive separate collection system Pushcart equipped with standardized waste bins
11
Proposed labour-intensive separate collection system Tricycle equipped with standardized waste bins
12
Proposed labour-intensive separate collection system Tuk-Tuk equipped with standardized waste bins
13
Dr.-Ing. Wolfgang Pfaff-Simoneit Former Principal Technical Expert for Solid Waste Management KfW Entwicklungsbank / KfW Development Bank
How to manage these annoying recurring cost? Part 3: Sources and instruments for cost recovery
2019 Waste Finance Academy Accra / Ghana June 2019
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
Subsidies / Transfers
Citizens
None
Municipalities
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
Subsidies / Transfers
Taxes and duties for environmental protection Penalty payments for environmental pollution Charges for environmental authorisations
DescriptionNational government
Example
Environmental Fund
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
government
Example
None
Solid waste management
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Landfill Diversion tax
Tax or levy to be paid according to amount of waste disposed on a landfill / dumsite DescriptionNational
government
Municipalities
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Consumers
Taxes or duties levied on defined products, e.g. packaging materialDescriptionNational
government
Example
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Consumers
Taxes or duties levied on defined products, e.g. packaging materialDescriptionNational
government Industry,
Example
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
Citizens
Flat fee – none Volume based fee - high
Widely applied
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Municipal user fees - II
Waste management fee type and billing method – Commercial fee type
Source: Worldbank, What a Waste 2.0
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Municipal user fees - III
Waste management fee type and billing method – Household fee type
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Municipal user fees - IV
Waste management fee type and billing method – Household billing method
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Assessment of fee types and billing methods
Fee type Social adjustability
Behavioral guidance
Flat fee -- -- Fee per volume + ++ Fee per income level + -- Property value ++ -- Property location + -- Variable based on cost -- o
25
Billing method Revenue security
Joint property tax billing ++ Direct solid waste billing o Payment at central location -- Door-to-door fee collection + Joint utility billing +
26Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Legal relation Material flows Cash flows
Compost market
Composting facilities
Recyclables Market
Dealers, recyclers
Municipality Collectors
27Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Legal relation Material flows Cash flows Compost market
Composting facilities
Recyclables Market
Dealers, recyclers
Organisation / Supervision
Full private service - waste and fee collection by collector‘s association
Collector‘s association
28Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Legal relation Material flows Cash flows Compost market
Composting facilities
Recyclables Market
Dealers, recyclers
Tender / Supervision
Full private service - waste and fee collection by private service provider
Private company
Slide Number 14
Environmental taxes and duties / Environmental funds
Earmarked taxes and levies
Extended Producer Responsibilty (EPR) – Service organised by obligated stakeholders
Municipal user fees - I
Municipal user fees - II
Municipal user fees - III
Municipal user fees - IV
Slide Number 26
Slide Number 27
Slide Number 28
How to manage these annoying recurring cost? Part 3: Sources and instruments for cost recovery
2019 Waste Finance Academy Accra / Ghana June 2019
Bank aus Verantwortung
Dr.-Ing. Wolfgang Pfaff-Simoneit Former Principal Technical Expert for Solid Waste Management KfW Entwicklungsbank / KfW Development Bank
How to manage these annoying recurring cost? Part 1: Cost and cost structures of SWM systems
2019 Waste Finance Academy Accra / Ghana June 2019
Dr.-Ing. Wolfgang Pfaff-Simoneit I Cost and cost structures in SWM
Waste Management processes and technologies
Quelle: Faulstich 2008
Dr.-Ing. Wolfgang Pfaff-Simoneit I Cost and cost structures in SWM
GDP [EUR /cap/year] < 2.000 [EUR/Mg]
2.000 – 4.000 [EUR/Mg]
4.000 – 6.000 [EUR/Mg]
25.000 – 30.000 [EUR/Mg]Method / Technology
Source Separation of dry Recyclables 20 - 30 25 - 35 35 - 45 60 - 70
Sorting of high caloric Fractions / RDF 20 - 30 25 - 35 30 - 40 50 - 60
Composting of separately collected Bio- waste
20 - 30 20 - 30 20 - 30 35 – 50
Intensive Rotting / Fermentation of Bio-waste 50 - 60 50 - 60 50 - 60 70 - 90
Simple MBT 20 - 25 20 - 30 20 - 30 35 - 50
MBT intensive Rotting or Fermentation 40 - 50 40 - 50 45 - 55 75 - 90
MBS / MPS 45 - 55 45 - 55 45 - 55 65 - 80
Waste to Energy Plant 65 - 80 65 - 80 70 - 85 90 - 120
Thermal Waste Treatment 70 - 90 70 - 90 75 - 95 110 - 140
Sanitary Landfill 10 - 20 12 - 22 15 - 25 40 - 60
Full cost of SWM technologies as a function of GDP
4© UNIVERSITÄT ROSTOCK | AGRAR- UND UMWELTWISSENSCHAFTLICHE FAKULTÄT | Dr.-Ing. Wolfgang Pfaff-Simoneit | Cost and cost structurtes in SWM
Dr.-Ing. Wolfgang Pfaff-Simoneit I Cost and cost structures in SWM
Waste management strategies
Legende
treatment Co-
Waste Type A2
Waste Type A3
Waste Type A4
Waste Type B1
Waste Type B2
Waste Type C1
Waste Type C2
0,00
20,00
40,00
60,00
80,00
100,00
120,00
140,00
160,00
BAU Ia Ib Ic Id IIa IIb IIc IId IIIa IIIb IIIc IIId IVa IVb IVc IVd
Erlöse Wertstoffe Erlöse Energie Erlöse Zertifikate Kosten abz. Erlöse
Waste Type B1
Cost and potential cost coverage
7© UNIVERSITÄT ROSTOCK | AGRAR- UND UMWELTWISSENSCHAFTLICHE FAKULTÄT | Dr.-Ing. Wolfgang Pfaff-Simoneit | Cost and cost structurtes in SWM
Diagramm1
BAU
BAU
BAU
BAU
36
12
0
0
33.6
14.4
0
0
Ia
Ia
Ia
Ia
34.0386201205
19.9890832795
0
7.3775
28.3383034646
23.9868999354
0
9.08
Ib
Ib
Ib
Ib
25.8240275008
26.71512042
2.5729624792
4.16
16.9480409377
32.058144504
5.1459249583
5.12
Ic
Ic
Ic
Ic
47.7818687208
28.3145620636
1.4841453131
4.16
39.6748109949
33.9774744764
2.9682906262
5.12
Id
Id
Id
Id
31.8304604155
29.6627290973
16.8120857672
4.16
19.9917649022
35.5952749168
21.758235461
5.12
IIa
IIa
IIa
IIa
28.7207658385
21.9706705615
0
10.06
22.3166317262
26.3648046738
0
12.07
IIb
IIb
IIb
IIb
23.4830828289
25.7014922829
1.7955247882
8.175
14.9722595841
30.8417907395
3.5910495764
9.75
IIc
IIc
IIc
IIc
42.1882342665
28.645504616
1.2698191662
8.175
33.614314177
34.3746055392
2.5396383325
9.75
IId
IId
IId
IId
29.436076653
28.6138151508
15.8985733762
8.175
17.9922807366
34.336578181
20.0446062624
9.75
IIIa
IIIa
IIIa
IIIa
25.6958630558
25.3766837442
0
11.824
18.022526307
30.452020493
0
14.422
IIIb
IIIb
IIIb
IIIb
23.8576056244
27.4745774874
7.9670271882
9.939
13.3755816054
32.9694929849
10.7911357097
12.102
IIIc
IIIc
IIIc
IIIc
29.4873710161
27.7493790277
8.7573816962
9.939
18.8186609377
33.2992548332
11.7132159691
12.102
IIId
IIId
IIId
IIId
36.7916854431
30.6441927907
6.6245578638
9.939
26.9594002211
36.7730313488
8.1650045277
12.102
IVa
IVa
IVa
IVa
80.8052497116
25.0566502884
29.4756
2.4375
70.318819654
30.067980346
34.3882
3
IVb
IVb
IVb
IVb
75.3724730798
26.5173100869
21.5677168333
8.175
64.8993915902
31.8207721043
25.1623363056
9.75
IVc
IVc
IVc
IVc
57.869985083
25.3341527504
16.7333621667
9.939
47.8512608384
30.4009833004
19.5222558611
12.102
IVd
IVd
IVd
IVd
58.4426774785
26.5279579548
22.9048645667
9.939
47.1566084597
31.8335495458
26.7223419944
12.102
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Ia
Ib
Ic
Id
IIa
IIb
IIc
IId
IIIa
IIIb
IIIc
IIId
IVa
IVb
IVc
IVd
Basisszenario
o
o
2019 Waste Finance Academy Accra / Ghana June 2019
How to manage these annoying recurring cost? Part 2: Minimising collection and disposal cost
Maximising waste recovery and revenues
Dr.-Ing. Wolfgang Pfaff-Simoneit I Maximising waste recovery and revenues
Conclusions and outlook
› Separate collection systems developed in high-wage countries less suited for low-wage countries
› Integration / inclusion / cooperation with informal sector required › Appropriate collection systems offer
- comprehensive employment opportunities - at reasonable cost
Conclusions
Open questions › Can social acceptance be achieved for the proposed collection concept
› Development of appropriate organizational models
› Development of appropriate fee charging systems
› Verification of the theoretical performance and cost figures in pilot projects
9
Proposed labour-intensive separate collection system Collection of recyclables and waste at the front-door
10
Proposed labour-intensive separate collection system Pushcart equipped with standardized waste bins
11
Proposed labour-intensive separate collection system Tricycle equipped with standardized waste bins
12
Proposed labour-intensive separate collection system Tuk-Tuk equipped with standardized waste bins
13
Dr.-Ing. Wolfgang Pfaff-Simoneit Former Principal Technical Expert for Solid Waste Management KfW Entwicklungsbank / KfW Development Bank
How to manage these annoying recurring cost? Part 3: Sources and instruments for cost recovery
2019 Waste Finance Academy Accra / Ghana June 2019
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
Subsidies / Transfers
Citizens
None
Municipalities
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
Subsidies / Transfers
Taxes and duties for environmental protection Penalty payments for environmental pollution Charges for environmental authorisations
DescriptionNational government
Example
Environmental Fund
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
government
Example
None
Solid waste management
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Landfill Diversion tax
Tax or levy to be paid according to amount of waste disposed on a landfill / dumsite DescriptionNational
government
Municipalities
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Consumers
Taxes or duties levied on defined products, e.g. packaging materialDescriptionNational
government
Example
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Consumers
Taxes or duties levied on defined products, e.g. packaging materialDescriptionNational
government Industry,
Example
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Regulation Services Taxes and levies Solid waste financing
Others
Citizens
Flat fee – none Volume based fee - high
Widely applied
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Municipal user fees - II
Waste management fee type and billing method – Commercial fee type
Source: Worldbank, What a Waste 2.0
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Municipal user fees - III
Waste management fee type and billing method – Household fee type
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Municipal user fees - IV
Waste management fee type and billing method – Household billing method
Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Assessment of fee types and billing methods
Fee type Social adjustability
Behavioral guidance
Flat fee -- -- Fee per volume + ++ Fee per income level + -- Property value ++ -- Property location + -- Variable based on cost -- o
25
Billing method Revenue security
Joint property tax billing ++ Direct solid waste billing o Payment at central location -- Door-to-door fee collection + Joint utility billing +
26Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Legal relation Material flows Cash flows
Compost market
Composting facilities
Recyclables Market
Dealers, recyclers
Municipality Collectors
27Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Legal relation Material flows Cash flows Compost market
Composting facilities
Recyclables Market
Dealers, recyclers
Organisation / Supervision
Full private service - waste and fee collection by collector‘s association
Collector‘s association
28Dr.-Ing. Wolfgang Pfaff-Simoneit I Sources and instruments for cost recovery
Key Legal relation Material flows Cash flows Compost market
Composting facilities
Recyclables Market
Dealers, recyclers
Tender / Supervision
Full private service - waste and fee collection by private service provider
Private company
Slide Number 14
Environmental taxes and duties / Environmental funds
Earmarked taxes and levies
Extended Producer Responsibilty (EPR) – Service organised by obligated stakeholders
Municipal user fees - I
Municipal user fees - II
Municipal user fees - III
Municipal user fees - IV
Slide Number 26
Slide Number 27
Slide Number 28