The Big Picture
SMMP Credit: Market-Based Waste Management Program Policy
(1-3 Points, Non-Reciprocal)
The SMMP credit “Market-based Waste Management Program Policy” utilizes established market mechanisms to reduce waste generation and incentivizes optimization of waste management systems.
Market-based incentives for waste management integrate economic and environmental decision making help the public make more responsible environmental choices. In this credit, entities are incentivized to produce less waste through various programs, tax breaks, and more.
Examples of market mechanisms that can be leveraged to achieve this credit include Pay-As-You-Throw (PAYT) pricing and reward-based recycling incentive programs such as Recylebank. Other examples of market mechanisms that will satisfy this credit are listed below. With PAYT, Gainesville Florida reduced the amount of solid waste collected by 18% and caused residential savings of $186,200 in the first year of pricing adoption. With Recyclebank, Philadelphia, PA saved $11 million in avoided disposal costs and increased commodity revenues.
Certifying entities must implement at least two of the described policies or programs to achieve tier one credit points in this category, implement at least four to achieve tier two credit points, and implement at least six to achieve tier three credit points. Certifying entities must submit proof of ordinance development of two or more programs, depending on the tier met in order to achieve this credit.
Waste reduction and the optimization of waste management systems will play a significant role in reducing handling costs. As a result, market-based approaches create an incentive for the private sector to incorporate waste reduction into production or consumption decisions and to innovate in such a way as to continually search for the least costly method of abatement.
To meet this requirement of the standard, proof of the implementation of two or more programs, depending on the tier met, must be submitted or the credit will not be rewarded.
Case Study and Benefits
As seen below, Gainesville Florida utilizes a pay-as-you-throw (PAYT) program when dealing with solid waste. This gives clear incentive to produce less waste. This is an effective policy that serves as a great example of one way to incentivize waste reduction.
Referenced Standards and Definitions
Intent and Requirements
To use market mechanisms to reduce waste generation and to incentivize more efficient waste management systems.
Local Government Requirements
Adopt the following incentive/market-based policies.
Tier 1: (1 point)
Develop and adopt 2 or more policies/programs.
Tier 2: (+1 point)
Develop and adopt 4 or more policies/programs.
Tier 3: (+1 point)
Develop and adopt 6 or more policies/programs.
Market-Based Policies and Programs
- Pay-as-you-throw variable pricing for waste management services.
- Offer and promote no-cost annual business waste assessment/audit with recommendations for “right-sizing”.
- Incentives for product ‘lightweighting’ through EPP guidelines.
- Tax breaks or other incentives for donations to non-profit food rescue or other intermediate material reuse organizations.
- Tax breaks and/or other incentives for difficult to recycle materials such as mattresses and Styrofoam.
- Incentives for xeriscaping or other policies to reduce grass planting and drought tolerant landscaping
- Optimize and incentivize procurement policies for products and materials that are recyclable and have recycled content.
- Creation of recycling market development zones.
- Adoption of reward-based recycling incentive programs, such as Recyclebank & other loyalty-based buyback programs.
- Advanced disposal/processing fees; e.g. Tire and battery disposal fees, and any other container reuse/recovery fees.
- Extended Producer Responsibility (EPR) requirements in Local Government procurement or requirements for retail establishments should conform with
- Version 4 of SMaRT Sustainable Product Standard, or an equivalent standard that has an operational reuse prerequisite and credit for end-of-life reuse in excess of 35 percent.
- Other programs as defined by the Local Government
Why We Care
Market-based incentives for waste management integrate economic and environmental decision making to help the public make more responsible environmental choices. As a result, market-based approaches create an incentive for the private sector to incorporate waste reduction into production or consumption decisions and to innovate in such a way as to continually search for the least costly method of abatement. In this credit, individuals are incentivized to produce less waste through various programs, tax breaks, and more.١
How to Meet the Requirements
- Evaluate the best combination of options to sustainably manage materials in the Local Government. Develop and submit an ordinance to adopt these programs.
- Ensure that dedicated resources are allocated for execution of the Sustainable Materials Management strategies.
- Show proof of the implementation of two or more programs, depending on the tier met.
Case Studies & In-Depth Information
Communities with pay-as-you-throw (PAYT) programs have a waste collection system in which residents are charged for waste collection based on the amount that they throw away: the more trash they produce, the more they pay.¹ This creates a direct economic incentive to recycle more, therefore reducing waste.
Gainesville, Florida is a city that has had great success with a PAYT program. In partnership with Waste Management of Central Florida, Inc., Gainesville’s residents pay $13.50, $15.96, or $19.75 per month according to whether they place 35, 64, or 96 gallons of solid waste at the curb for collection. Recycling, however, is unlimited. Within the first year of the program’s implementation, the amount of solid waste collected decreased 18%, and the recyclables recovered increased 25%. The total disposal tonnage decreased from 22,120 to 18,116, causing savings of $186,200 to the residential sector ($7.95 per home).²
Recyclebank is a program in which members or waste haulers in a partnering city are able to earn points for recycling, which they can then redeem for local deals, donations, or savings. Since implementing the program in Philadelphia 2010, the City has seen a 29% lift in diversion rate, which corresponds to over $11 million in avoided disposal costs and increased commodity revenue.³
Version 4 of SMaRT Sustainable Product Standard
SMaRT Consensus Sustainable Product Standards is a rating system that provides substantial global benefits for the world’s products with environmental, social, & economic criteria. This encompasses multiple rating systems and benefits, environmental and economic. This Standard is included as an aspect of SMMP Credit: Market Based Waste Management Program Policy due to its operational reuse prerequisite and credit for end-of-life reuse in excess of 35 percent.
Extended Producer Responsibility (EPR)
OECD Definition: a policy approach under which producers are given a significant responsibility – financial and/or physical – for the treatment or disposal of post-consumer products. Assigning such responsibility could in principle provide incentives to prevent wastes at the source, promote product design for the environment and support the achievement of public recycling and materials management goals
Waste Zero Definition: with PAYT, people pay for trash collection based on how much they throw away, like any other utility.
FlexCon Definition: Product lightweighting involves getting the weight out, which serves two purposes: reduce the weight of the product, so it takes less energy to move it. use fewer resources, such as thinner pieces of plastic or metal.
SMaRT Sustainable Product
OECO Textiles Definition: a group of standards, applicable to building materials, apparel, textiles and flooring. These products constitute 60% of the world’s products, according to the SMART website. The SMART standards for these products are, again according to their website, “based on transparency, using consensus based metrics and life-cycle analysis.”
Sustainable Materials Management
EPA Definition: A systemic approach to using and reusing materials more productively over their entire life cycles. It represents a change in how our society thinks about the use of natural resources and environmental protection. By looking at a product’s entire life cycle, we can find new opportunities to reduce environmental impacts, conserve resources and reduce costs.