The world produces millions of tonnes of waste per day — and that number is growing. When China recently stopped importing waste, waste-exporting countries were forced to reconsider their use of natural resources and reduce the amount of waste they produce. It is thus clear that waste poses an enormous challenge, but at the same time it presents an opportunity for countries and cities to realize ambitions regarding recycling and to tap into the valuable business of waste management.
In most parts of the world, growing wealth is associated with an increased output of waste. Furthermore, the composition of waste is changing; wealthier countries produce more packaging (plastics), electronic components (e-waste), and food waste. Simultaneously, many resources that are of strategic importance, are becoming scarcer. As we wrote last week, the resources making up the atomic substrate are fundamental to the entire ‘stack’ of our digital modern world. The scarcity of resources like fresh water, useful sand, lithium, cobalt and rare earth materials will increasingly fuel geopolitical struggles, and benefit those that command large shares of these resources or know how to use them in an efficient way. Indeed, especially when commodity prices are high, it is often cheaper to recycle scrap copper, iron and steel, as well as waste paper and plastic, than to make such materials from scratch.China’s latest move in its war on pollution is urging other countries to rethink their strategy regarding their production of commodities and the loss of resources that is implicit to large production of waste. Because the U.S. used to ship as much as 27 million metric tons of recycled paper to China every year, it is now bracing for the impact of the waste ban China started on March 1. Furthermore, while Europe is seen by many as an environmental leader, carefully using energy and resources, the truth is that much of its green success has relied on exporting its trash to China.Different approaches to waste and commodities are taking shape. First is the China approach, the ban on waste. Already, the number of countries banning plastic bags is growing. Africa appears to take the plastic bag problem seriously, as more than 15 African countries have either banned or imposed a a tax on them. A British tax on plastic shopping bags, introduced in 2015, helped cut their use by 85%. More radically, Taiwan has committed itself to banning plastic items (not only bags, but also single-use plastic bags, straws, and cups) by 2030. Second, another approach taken by China is the strategy of nationalizing commodities. The country has nationalized a number of rare earth mines for environmental and strategic reasons. As they still supply other countries with some of the metals, this move is motivated not only by autarky but also by growth strategy. Similarly, countries with high resource dependency, might increase state involvement in the management of critical resources. Third, countries and cities are setting circular agendas. The Netherlands has set ambitious targets: achieving a transition to a fully circular economy, i.e. one in which 100% of resources are reused by 2050 and the use of the resources is already reduced by 50% by 2030. One of the primary ways to achieve this is through recycling more general waste. But it also entails transitioning towards different and more energy efficient resources, e.g. the protein transition. Furthermore, France has also announced plans for a circular economy, including the goal of using 100% recycled plastic by 2025. And the EU has just set new rules on waste management and recycling. Moreover, cities are gaining circular ambitions. New York and San Francisco now have a goal of “zero waste” and want to achieve this by reducing waste and increasing recycling. However, they still have a long way to go. New York is among the cities generating the most waste (33 million tonnes per year). Countries that are successful in combining the three approaches will be most likely to secure their commodities and resources for the future.
