Waste has become a resource
Waste was once a problem, but has become a demanded resource. Regulation of the area of waste shall ensure a well-functioning waste market that opens to increased competition, innovation and an even more efficient waste management.
Waste is not a natural monopoly; it is more like a commodity. Today, however, waste is controlled more as if it were a monopoly, and the municipalities have the authorisation to allocate an important part of the total amount of waste.
Over the last years, a lot of analyses have been made, and they point, among other things, at the following:
There is not sufficient incentive to compete on price and efficiency as to the part of the waste, for which the municipalities are responsible.
The waste producers (households and companies) do not have a free choice as to the cheapest and best solution of waste management.
The present financial regulation of the waste sector is complex, burdensome and opaque to the waste producers as well as to private waste solutions and the municipalities.
Experiences from competition exposure of reusable waste
In 2010 reusable commercial waste was to a certain degree exposed to competition. Experience shows that there are well-functioning private solutions on the market. There has, however, been uncertainty as to the access to reusable waste, which has resulted in missing investment in sorting plants and technological development.
The strategy of supply sets the future framework
A clear framework is needed to ensure necessary investments and necessary innovation. Consequently, in the strategy Supply for the future the government aims at removing the barriers of investments in the field. This can be in the form of e.g. exposing waste suitable for incineration to competition and a further exposure of reusable waste to competition.
An increasing demand for raw materials makes the market ready for a deliberation of waste. In this way, the flow of waste will go where you get best value for money instead of where it is assigned to by the municipalities.