More on circular economy from MEED:

• Climate and security drive water project spending
• Creating sustainable business value 
• Clock ticks for shift to greener economy

The current ecological and climate crisis is clear. We only have a short window in which to significantly adapt the way we live, consume, travel and work if our children and grandchildren are to inherit a liveable planet. One thing we must urgently tackle is the amount of waste that we generate, and what we do with it. 

We talk of ‘throwing things away’, but what does this mean? In the Middle East, it generally involves waste being collected by refuse trucks and deposited in mountainous dumpsites up to 30 metres tall, to decay slowly over decades.  

This linear make-take-throw model must be transformed into a circular economy, underpinned by three principles that are driven by design: to eliminate waste and pollution, circulate products and materials multiple times (at their highest value), and regenerate nature.

A circular economy avoids the consumption of finite resources and is underpinned by a transition to renewable energy and materials. But this will not happen overnight, or by itself. It will take a focused and determined effort across business, government and society.

Moreover, investment and regulatory support is necessary to develop the economic ecosystem required. In short, circular economy will not work it if does not make economic sense.

Government reforms to support the demand for recycling

The recent decision by the Dubai government to levy a sliding set of fees on waste disposal is a welcome step in the right direction, setting a price on waste closer to its environmental cost and using fiscal stimulants to encourage waste reduction, composting and recycling. The next step should be to prompt the diversion of waste from landfills by stimulating demand for recycled materials.

The recycling sector is driven by availability of raw materials and demand for finished goods, and the economics of recycling differ depending on the material.

This linear make-take-throw model must be transformed into a circular economy, underpinned by three principles that are driven by design: to eliminate waste and pollution, circulate products and materials multiple times (at their highest value), and regenerate nature.

For example, mining aluminium is an expensive task and recycling aluminium cans is a relatively straightforward process. Thus, market forces encourage recycling.

But for plastics, the story is quite different. The cost of producing plastic tracks the oil market and when the price of a barrel of oil drops, so does the commercial attractiveness of using recycled material. These price fluctuations deter investment and hamper the development of wide-scale plastic recycling.

A solution is for governments to use regulatory levers to level the playing field and create steady demand for recycled materials. Laws obligating manufacturers to incorporate recycled materials in their manufacturing can help drive demand.

There is clear evidence from countries including the UK and across Europe that when companies are mandated – or fiscally encouraged – to include post-consumer resources in their manufacturing, it encourages investment in processing facilities, and innovation to secure the necessary waste materials. There still remains a gap in the Middle East when it comes to laws mandating the use of recovered materials, however.

Benefits of localisation

Local processing and manufacturing of recyclables has several benefits. It decreases the need for imports and shipping, and the associated carbon emissions, and it also allows for much greater oversight and accountability, reducing the risk of waste from the developed world burdening the poorest countries. Localisation also helps create more predictable pricing and reduces supply-chain risk associated with international trade.

Recycling and circularity does not need to be limited to just product packaging. If food waste was a country, it would be the third largest emitter of greenhouse gases after the US and China, and more needs to be done to tackle the quantity of food currently sent to landfill.

In the construction sector, which is a significant part of the Middle East’s economy, there is a need to become more sustainable. Certain high-profile construction projects in the region now insist on taking a sustainable approach to construction. For instance, the Red Sea Development in Saudi Arabia is grinding down construction waste to make roads, but at present these initiatives are dependent on the vision and desire of the developers.

Setting legislative standards around sustainability in construction can drive innovation and improvement.

Technology can help, but we cannot wait for it to save us

Fundamental to improving waste management is the ability to measure and track waste, ensuring that the polluter pays. The Middle East currently lacks detailed and dependable data on the volumes and character of waste streams, as well as specific data about waste generators such as names, locations and types of waste.

Significant investment is required to build a data collection system, but it is not currently clear where this will come from. An overarching system needs to be designed and mandated by the government. Private companies and consultancies can develop it, but there still remains the question of who will pay for it.

A solution is for governments to use regulatory levers to level the playing field and create steady demand for recycled materials. Laws obligating manufacturers to incorporate recycled materials in their manufacturing can help drive demand.

Technological advances are under way in waste sorting and processing. From artificial intelligence and robotics to traditional optical and mechanical sorting, technology is essential to high-volume waste recycling.

But we cannot rely on robots to save us and stay blind to the necessity of changing consumer and business behaviour. Most mixed waste recycling facilities in the region are barely able to recover 8 per cent of the waste they receive because materials are too dirty and contaminated, usually as a result of being mixed with food waste. Separate disposal of food waste at the household level would make a significant difference, as would a determined public education campaign. 

Unlocking investment for circularity

There has never been more interest in investing in sustainable projects. From international development banks to global banks such as HSBC, the focus on environmental, social and governance (ESG) criteria has prompted financiers to find profitable, sustainable opportunities to invest.

But while finance for capital expenditure such as recycling facilities is becoming easier to access, the operating costs of collecting, sorting and processing waste for recycling and composting remain high. Without action to stimulate demand for recycling, profitability is uncertain and market forces will not generate the change necessary. 

About the author

Malek Sukkar is CEO of Averda, a waste management and recycling company headquartered in Dubai