Metro Vancouver last year launched a new program aimed at increasing waste diversion in the region. The plan set four guidelines: reducing waste, maximizing reuse, recovering energy from waste, and disposing of what’s left only after it’s been depleted of its reusable qualities. Called the Integrated Solid Waste and Resource Management Plan, the goal is to bring waste diversion levels from 55% to 70% by 2015. Andrew Marr, senior engineer at Metro Vancouver’s solid waste department, believes the region is on track to achieve its goal.
The greatest opportunity, says Marr, lies in organic waste collection. According to Metro Vancouver’s 2010 garbage facts, the region produces more than three million tonnes of waste per year. Of that amount, about half is organic.
Construction sites and businesses are the largest contributors, each producing about 1.2 million tonnes. The construction industry diverts around 76% of its organic waste, whereas businesses do less well at 44%.
Residential units contribute significantly less waste, but their diversion rate is notably different: multi-family homes divert only 16% of their 260,000 tonnes and single-family homes divert almost three times as much, separating 46% of their 800,000 tonnes.
Aside from minimizing environmental impacts, the plan offers some promising opportunities for businesses and entrepreneurs who are looking to capitalize on the waste diversion market. By the numbers, businesses, which throw out the greatest amount of organic waste, offer the best opportunity for building an industry around collection.
“If you look at organics, about half of it comes from businesses, and most of what they throw out is food,” said Marr.
Marr believes achieving the change can be accomplished in part by selling organic waste collection as a viable business.
“There is an opportunity for companies that want to get into the business of hauling organics,” said Marr.
According to Metro Vancouver, the market supports the idea that the creation of these businesses is financially feasible. They won’t get any competition from Metro Vancouver either, said Marr. “Metro Vancouver is not in the business of processing organics, and it has no intention to be.”
The cost of managing garbage is just over $100 per tonne. The cost to take organic material to a composting facility is around $60 to $70 per tonne. Although the numbers can vary somewhat, said Marr, there is money to be made if businesses do it right, and he says Metro Vancouver is trying to help.
“We want to increase the financial incentive to divert organics,” said Marr. So they’re setting the stage for success for those wishing to invest in the business.
By setting up a price structure that makes it profitable to divert garbage, they’re creating an economic and regulatory climate that will make these businesses viable. Conversely, by imposing disposal bans and fees, they’re trying to compel people to leave the pure garbage businesses.
“We are providing some certainty for investors by saying the rules are going to change and here’s how they’re going to change, and here’s the timing. People will recognize that this [will] happen, and that it’s [not] a risky business.”
Marr noted that in order to foster the healthy growth of new collection businesses, a balance must be struck between the rate at which waste-producing businesses divert more of their organic waste and that at which new waste collection businesses sprout up.
He thinks businesses will be receptive. “Most forward-thinking businesses know that waste equals cost,” he said, adding they face their own challenges in facilitating the change. Many of them simply don’t have the space to house the facilities needed to divert their waste.
To help remedy the problem, Metro Vancouver is working with municipalities to modify existing bylaws to ensure new business construction provides for space to house containers that would facilitate this type of recycling.
Nonetheless, there are other cost savings for businesses making the change as well. For example, diverting organic waste means that a business would need a smaller container for garbage, and that it might need to be collected less frequently.
“We can’t put numbers to it yet, but certainly anecdotally it looks like significant changes are happening,” said Marr. Asked what financial incentives Metro Vancouver has created for would-be investors and entrepreneurs, his answer was simple: “The incentive is the business opportunity itself.” •
