Solid Waste Tariffs: Encouraging Sustainable Investments in Landfills

SWM PPP Ukraine

Ukraine generates 17 million tons of waste per day, but only recycles 4 percent of it. More than half its 6,000 dumpsites are uncontrolled, posing environmental and health risks such as groundwater contamination, rodents, disease, and emissions of methane – a potent greenhouse gas. An improved tariff system is needed to encourage private sector investments in solid waste services and through public-private partnerships. P3DP is working with the National Commission on Regulation of Public Utilities to develop a rational, clear and consistent tariff methodology for landfills.

Ukraine has the potential to significantly reduce greenhouse gas emissions, increase waste recovery rates, and contain environmental and health risks by reforming its solid waste management sector.  A good place to start is tariffs: under the current system, landfill operators have little incentive to invest in needed improvements.

P3DP’s international SWM experts, Chris Shugart and Peter Faircloth, presented a proposed Solid Waste Disposal Tariff Methodology at a roundtable discussion organized by the National Commission for the Regulation of Public Utilities on November 12. Once finalized, the methodology will become a key strategic pillar for better regulation of the SWM sector in Ukraine. This work complements efforts of the World Bank and other international agencies to support low-emission development strategies in the sector.

A national tariff methodology opens the door wider for public-private partnerships, which can attract private sector funding, technology and expertise to the sector. This will lead to improved landfills that adhere to global best practices, support Ukraine’s efforts to transition to lower greenhouse emissions, and ensure that landfill post-closure care protects the environment and public health.

Valeriy Saratov, Head of the National Commission, opened the roundtable by stressing the importance of solid waste management in Ukraine’s development.  He noted the importance of USAID’s support in general and P3DP specifically. In addition to P3DP’s contributions to improving legislation, policy and regulation, two of P3DP’s pilot PPP projects, in Vinnystia and Ivano-Frankisk, focus on the SWM sector.