LOCAL GOVERNMENT MINIMISATION INITIATIVES & SMALL AND MEDIUM SIZED ENTERPRISES

Dr. Linda Wright

MWH New Zealand Ltd.

1.1 Generic Overview

The generation of waste is an inherent and unavoidable aspect of human society. In industrialised countries, the process of engaging in daily functions involves the utilisation of consumer products, whose production and use result in the generation of . An inextricable link exists between increased prosperity, consumerism and increased waste production. Therefore it is predicted that as wealth becomes more evenly distributed throughout the world, global municipal solid waste quantities will increase by a projected annual rate of 2.4% (Bruvoll, 1998 & Tammegmagi, 1999).

The effects associated with the management of waste are far reaching and range from local to global concerns. Concerns also exist with regards to the excessive consumption and depletion of virgin materials and that policies supporting a reduction in resource consumption should be introduced in order to conserve materials for future generations. Despite these ever increasing concerns regarding the management of waste, it remains that up to 95% of the solid waste generated world-wide is currently disposed of to (El- Fadel et al. 1997).

In the UK the Department for Environment, Food & Rural Affairs (DEFRA) determined that municipal solid waste (MSW) arisings comprised 29.3 million tonnes (Mt) in 1999/2000, a 5% increase on the 27.9 million tonnes produced in 1998/99. However, despite exceeding the 3% increase previously predicted it should be noted that MSW accounts for a mere 7% (Fig. 1) of the total quantity of 424 Mt of waste produced annually in the UK (DEFRA, 2001& DETR, 2000).

Dredged Spoils Municipal Sewage Sludge 10% 7% Commercial Minerals (Mining & 1% 6% Quarrying) Industrial 27% 12%

Demolition & Construction Agriculture 17% 20%

Figure 1 Estimated UK waste arisings (DEFRA2, 2001)

Over recent years, as environmental awareness has evolved, calls have been made for the implementation of more sustainable practices. In 1987 the World Commission on Environment and Development produced ‘Our Common Future’ (Brudtland, 1987), which defined sustainable development as “development which meets the needs of the present without compromising the ability of future generations to meet

Page 1 of 9 their own needs”. The report identified the fundamental characteristics of sustainable development as the maintenance of the overall quality of life, the continuing access to natural resources and the avoidance of lasting environmental damage, while remaining committed to growth (Tammemagi, 1999; Westlake, 1997; Bell, 1997 & Hill, 1998). In addition, in June 1992, the United Nations Conference on Environment and Development ‘Earth Summit’ was held in Rio de Janeiro, where 173 nations identified and agreed actions to promote sustainable development. The conference was primarily concerned with stimulating the implementation of action to preserve the environment for the 21st Century, and to establish a process by which sustainable development could be achieved. Objectives were established with regard to increasing the of waste management, which included the minimisation of waste while stabilising existing waste production, the quantification of waste flows and the maximisation of environmentally sound waste re-use and . It was also determined that national programmes for waste management research and practice should be developed, in addition to the raising of public awareness and the promotion of environmentally sound waste disposal practices. In order to achieve such objectives it was necessary to establish and incorporate a series of targets into national waste management legislation and national waste management strategies. The aim being to stimulate local authorities and private sector organisations to promote waste prevention and , along with reuse, recycling, and recovery (Gavron, 1999; Hill, 1998; Read et al1, 1999 & Read et al2, 1999).

1.2 Local Government, Waste Minimisation & the Drivers for Change

Local authorities in the UK are, due to a range of drivers, under intense pressure to increase the quantity of material that they reuse and recycle from both the residential and commercial and industrial waste streams. In light of this local authorities have been revising both their waste strategies and the provision of waste management services with the aim of moving towards and complying with the myriad national and European mandatory waste targets. The drivers responsible for stimulating such change include:

1.2.1 Legislation In an increasingly litigious society the waste management industry is being revolutionised from a previous setting of limited legislative control to a regime that is being perpetually transformed by a plethora of onerous regulations. Moreover, when existing and proposed EC Directives are implemented into domestic legislation, the resulting compliance obligations will be increasingly formidable.

One of the most significant EC Directives is the Waste Framework Directive 75/442/EEC, as last amended by Directive 91/692/EEC, which was fundamental in setting out a waste management policy for the EU (Wolf & White, 1997 & Hill, 1998). However, other directives have been introduced to target specific waste streams and waste management options. These include for example, the Hazardous Waste Directive (91/689/EEC), the Waste Incineration Directive (2000/76/EC), the Integrated Prevention and Control (IPPC) Directive (96/61/EC), and the Packaging and Directive (94/62/EC). However, it is the EC Directive on the Landfill of Waste 1993/31/EC (Landfill Directive) that will have the greatest influence with regards to the way in which both municipal and commercial and industrial waste is managed in the UK

Page 2 of 9 The Landfill Directive aims to mitigate or ameliorate the deleterious effects associated with the landfilling of specific types of waste. The UK therefore, is now obligated to transform its existing co disposal practices and introduce alternative, more sustainable, waste management options for the various components of the industrial and municipal waste streams. It is apparent that the Landfill Directive is a fundamental driver in transforming the way in which waste is managed in the UK and it seems that without it we would we would not be investing so heavily in changing existing practices (ENDS3, 1999, National Assembly for Wales3, 2001 & Read, 1995).

1.2.2 The National Waste Strategy Reform of the waste management industry is not the sole result of legislative provisions, as a host of other factors play an integral role with regards to the way in which society’s wastes are managed. The Waste Framework Directive 75/442/EEC was fundamental in setting out a waste management policy for the E.C. It imposed an obligation on each member state to produce a waste management plan in order to determine the means by which the objectives of the Directive would be implemented. These provisions have been transposed into domestic legislation by the evolution of the EPA 1990 via s. 44A, inserted by means of s. 92 of the EA 1995. The Secretary of State therefore, is required to draw up a National Waste Strategy containing policies relating to the recovery and disposal of waste in England and Wales (DETR1, 2000).

The National Waste Strategy (the Strategy) provides a coherent and consistent policy framework to be implemented locally by waste management practitioners. A primary and fundamental objective of the Strategy is to achieve an integrated and adequate network of waste disposal installations that consider the best available technique not entailing excessive costs (BATNEEC) as a prerequisite for decision-making. Furthermore, self- sufficient waste disposal practices should be ensured, while encouraging the prevention or a reduction in the quantities of waste produced and an increase in reuse, recovery and recycling (National Assembly for Wales, 2001).

It is apparent that considerable investment in the UK waste management infrastructure is required in order to divert industrial and municipal waste streams away from landfill to alternative more sustainable options higher in the . The Governments overall approach in changing waste management practices has relied upon target setting and market forces. However, these discretionary targets have had limited impact when combined with the volatile market prices for recyclate. To this end the long awaited Waste Strategy 2000 saw the Government and the National Assembly for Wales introduce a range of revised mandatory targets for England and Wales. In order to ensure that such targets are met the Government has produced statutory performance standards for recycling by local authorities in England, while the National Assembly for Wales is to produce its own measures to ensure that its targets are met (DETR1, 2000; National Assembly for Wales3, 2001 & Wright & Williams, 2001).

1.2.3 Recycling Markets Recycling various components of the industrial and residential waste stream is a process that is set to increase in the forthcoming years not only in the UK, but also in all member states that currently rely on landfill as the predominant means of disposal. Within the UK several individual local authorities have been strongly committed to achieving high recycling rates with Daventry and Bournemouth obtaining 35% and 30% respectively

Page 3 of 9 (Audit Commission, 2001). However many local authorities continue to demonstrate poor recycling rates due to a range of factors such as a lack of commitment to change existing waste management practices due to the comparatively low cost of landfill and inadequate resources and insufficient participation rates. However, an additional barrier influencing change in the UK MSW management industry is the volatility of the recycling markets. This not only determines the revenue generated per tonne of recyclate collected, but also the economic viability of collection schemes and the ability to secure long term fixed contractual agreements between reprocessors and local authorities.

1.2.4 Public participation and perception Undeniably, the public are a fundamental component in transforming the way in which industrial and municipal waste is currently managed in the UK. Being the producers, they are inextricably linked to the waste streams and are therefore able to influence the quantity, composition and quality of materials generated and subsequently collected. An investigation into public participation in plastics recycling schemes (McDonald & Ball, 1998), found that without public contribution recycling from domestic waste would not be possible, and that publicity and awareness were instrumental in providing motivation and reinforcing positive behaviour. Read (1999) found that awareness campaigns and promotional activities achieved greater and more effective public participation, which increased the average weekly recycling tonnages with a greater range of materials recovered and recycled.

1.3 UK Local Government, Waste Minimisation Initiatives and SME’s It can be seen that significant changes are occurring in the way in which wastes are managed in the UK with regards to both residential and industrial waste streams. It is now acknowledged that it is no longer acceptable to rely on landfill as the primary waste disposal option and that more integrated waste management solutions are required on a significant scale.

In order for local authorities to implement an integrated approach to sustainable waste management the focus of waste minimisation initiatives is not restricted solely to municipal solid waste streams. Increasingly local authorities have focused their attention on industrial and commercial waste streams by actively participating in or establishing their own waste minimisation programmes designated to targeting these waste streams at source. It is estimated that UK companies, from heavy manufacturers to hotels, loose up to 4% of turnover every year in avoidable waste. In addition, UK can increase profits by as much as £1000 per employee, by eliminating waste at source rather than dealing with it through disposal or recycling. To increase the focus on minimising industrial and commercial waste at source, the UK Government established Envirowise, a national programme dedicated to helping businesses to be more profitable thorough improved environmental practice and performance. The aim of the programme was to increase waste minimising initiatives in the commercial and industrial sector, and in particular to encourage participation by small and medium sized enterprises (SME’s). This highly successful programme provides a range of services which includes the following:

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• Telephone helpline advice to local authorities, local organisations, businesses and trade associations • Gives advice and presentation information on running waste minimisation workshops • Free six-monthly ClubNews newsletter providing the latest information about waste minimisation initiatives throughout the UK • Extensive range of free publications • FastTrack consultancy visits to SME’s • Support in establishing local and regional waste minimisation clubs

A fundamental component of the Envirowise programme has been to focus on the promotion and establishment of regional and local waste minimisation clubs throughout the UK. At the beginning of 2000 there were approximately 100 clubs established and some 1,000 companies of all sizes had joined club projects. The vast majority of clubs have been established by local authorities who have targeted and recruited individual companies within their territorial boundary. Figure 2 illustrates the various existing and proposed waste minimisation clubs located throughout the UK.

Figure 2 Waste Minimisation Clubs located throughout the UK

Page 5 of 9 In addition, Envirowise also provides a FastTrack consultancy programme, which is available to SME’s with less than 250 employees. The focus of the programme is to identify opportunities to implement waste minimisation and cleaner technology initiatives. The on-site visits are carried out by experienced, impartial consultants who identify and develop an action plan to get the company started on low-cost, high-value solutions. Following the on site visit a practical follow up report is produced which contains advice on how to minimise their environmental impacts while maximising profitability, while also identifying the opportunities for waste minimisation and cleaner technology solutions.

The promotion of waste minimisation and cleaner technology through local authorities and the Envirowise programme has given many of the companies involved a competitive advantage through:

• Cost Savings – production costs can be reduced through improved resource efficiency • Compliance – a proactive approach ensures that the company minimises the possibility of litigation • Risk reduction – control and reduction of risks and liabilities not only reduce the likelihood of fines and bad publicity but can also boost investor confidence • Market positioning – eco-friendly products can give supply chain confidence and improve customer relations

The programme focuses on achieving action on three fronts, these include:

• People – many reductions in waste can be achieved through better housekeeping. It is essential that employees are aware of the issues surrounding waste and are motivated and trained to prevent it. • Systems – a systematic approach to measurement and control highlights deficiencies and problems, enables targets to be set and maintains levels of efficiency. • Technology – capital investment in new technology can improve productivity and reduce waste generation, giving short paybacks

By concentrating on the core themes of waste minimisation and cost-effective cleaner technology, the Envirowise Programme has achieved a range of notable successes, which include the following:

• Good Practice Guides - more than 75 Good Practice Guides have been published which offer practical advice on how to save money by reducing waste at source. • Case Studies - over 75 Case Studies demonstrate how small and medium sized enterprises have cut their wastes and costs, often using simple but effective ideas that cost very little to implement. • Workshops – presentations at over 600 workshops and seminars to bring together local authorities and companies from all areas of the community for practical hands-on advice. • Estimated Annual Savings - last year alone free advice from Envirowise helped UK businesses generate an estimated annual saving of 170 million pounds. • Diversion from landfill - more than 624,000 tonnes of solid waste (equivalent of 9 million pounds in disposal costs) were diverted from landfill.

Page 6 of 9 1.4 Caerphilly County Borough Council’s Waste & Energy Review Project

Caerphilly County Borough Council is located in an area associated with low economic status in the South Wales valley’s of the UK. In 1999 the Council established a Waste Minimisation Club and recruited 13 companies with a range of primary and secondary objectives to be achieved. These included the following:

• To influence the profitability of participating companies through cost effective waste reduction and energy management. • To raise the participants awareness of environmental issues relating to waste and energy management and ensure compliance with relevant legislation. • To assist participants in securing organisation culture change and provide an opportunity to exploit the marketing potential resulting from improved environmental performance. • To demonstrate Caerphilly County Borough’s ongoing commitment to indigenous companies in addition to its desire to attract inward investment. • To secure effective company interaction and information networking between participants. • To demonstrate the project as a best practice case study for the area / region.

The project was funded by Caerphilly county Borough Council, the Welsh Office, the Environment Agency and European Regional Development Fund (ERDF) while each company involved also made a financial contribution of between £300 – £700 depending on employee number.

The project was a significant success with the following financial results achieved:

• The total actual and potential savings identified from the 13 companies was £523,364 per annum. • The annual actual and potential savings achieved for each company compared to the initial project fee ranged from £700 (more than twice the participation costs) to £142,723 (some 285 times the participation cost).

In addition to the above a range of waste minimisation initiatives were implemented in relation to process waste, energy conservation, waste treatment and segregation, conservation and legislative compliance. The project was also used as a best practice case study in the Draft Welsh Waste Strategy.

Why was the project such a success? • A hands on practical approach was adopted with all employees involved across the organisational structure to motivated the workforce • A diverse range of companies were involved • Companies became more aware of operating practices and procedures • The project focused on achieving legislative compliance • Wherever possible all identified opportunities were implemented and companies received benefits immediately • Incentive scheme was introduced whereby a % of all actual savings initiated as a result of employee suggestions were placed into an employee fund to be used for e.g local nominated charity, social fund, facilities etc. • Overall positive effect on company performance and culture was identified

Page 7 of 9 Conclusion There is no ambiguity, the UK waste management industry is evolving expeditiously and the principle driver for change remains the relentless quantity of legislation emanating from both national and international sources. Additional influences and barriers include the National Waste Strategy and its now mandatory waste targets, the inherent costs associated with recycling and the fluctuating market prices of recyclate.

In order to divert waste from landfill in the UK local authorities are moving towards a more integrated approach to waste management practices using more sustainable waste management options. To this end waste minimisation initiatives are increasingly targeted at commercial and industrial waste streams with local authorities key in establishing waste minimisation clubs, programmes and projects to stimulated change in waste management practices of SME’s.

Envirowise has been a fundamental component in achieving significant results in waste minimisation and cleaner technology initiatives in the UK. This has primarily been achieved through promoting the establishment of waste minimisation clubs primarily through local authority involvement, with Caerphilly County Borough Council being an excellent and successful example.

References

Audit Commission, 2001, Local authority PI’s 99/2000 - environmental services in England, Audit Commission

Bell, S., 1997, Environmental law, Blackstone Press Ltd., London ISBN 1-85431-689-9

Brutland, G. H., 1987, Our Common Future, World Commission on Environment and Development, The United Nations

Bruvoll, A., 1998, Taxing virgin materials: an approach to waste problems, Resources, Conservation and Recycling, No: 22, pp. 15-29

(DEFRA) Department for Environment, Food & Rural Affairs, 2001, Municipal waste management survey 1999/2000, Department for Environment, Food & Rural Affairs and the National Assembly for Wales

(DETR) Department of the Environment, Transport and the Regions, 1999, A way with waste - a draft waste strategy for England and Wales, Department of the Environment, Transport and the Regions

El-Fadel, M., Findikakis, A. N., Leckie, J. O, 1997, Environmental impacts of solid waste landfilling, Journal of Environmental Management, No: 50, pp. 1-25

ENDS3, 1999, UK anxiety over landfill Directive’s challenges, Environmental Data Services Ltd., Report 291, p. 27-28 Gavron, N., 1999, Reconceptualising waste as a resource, Waste Planning, No. 30, pp. 9,

Page 8 of 9 Hill, D., 1998, Sustainable development – tools and techniques for action, Proceeds of the Institution of Civil Engineers, Municipal Engineering, No. 127, Dec., pp. 165-169

McDonald, S. & Ball, R., 1998, Public participation in plastics recycling schemes, Resources, Conservation and Recycling, Vol 22, pp. 123-141

National Assembly for Wales, 2001, Managing waste sustainably, Consultation Paper, National Assembly for Wales, ISBN 0 7504 2662 4

Read, S. V., 1995, Waste Management Licensing: Challenges for Waste Regulation Authorities, Journal of the Chartered Institute of Water and Environmental Management, Vol. 9, pp. 573-579

Read, A. D., 1999, Making waste work: making U.K national solid waste strategy work a the local scale, Resources, Conservation and Recycling, Vol. 26 pp. 259-285

Read, A. D., 1999, “A weekly doorstep recycling collection, I had no idea we could!” overcoming the local barriers to participation, Resources, Conservation and Recycling, Vol. 26 pp. 217-249

Tammemagi, H., 1999, The waste crisis, , incinerators, and the search for a sustainable future, Oxford University Press, Oxford ISBN 0-19-512898-2

Westlake, K., 1997, Sustainable landfill-possibility or pipe-dream, Waste Management & Research, Vol. 15, pp. 453 – 461

Wright, L M. & Williams, K. P., 2001, Market prices for municipal solid waste recyclate, University of Wales, Cardiff, Report No: 2801

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