LAC Study tour: Solid Waste - sector note 3

This publication is part of a series of five notes reviewing the trends and challenges associated with urban development in Latin American cities (LAC) in five key sector. All of these notes identify the specific challenges that the cities have encountered in managing urban development and the impact of climate change. African cities can draw valuable insights from Latin American cities, which have successfully implemented innovative solutions to tackle the challenges of urban development while keeping environmental and fiscal sustainability standards.

This note provides an overview of the global urbanization trends and the increasing importance of effective solid waste management in cities.

The first part explores the trends and challenges associated with urbanization in Latin American cities and identifies the specific challenges that Latin American cities have encountered in managing urban waste. The objective is to highlight various innovative strategies employed in Latin American cities, such as waste-to-energy projects, community engagement and education, technology and data-driven solutions, and efficient recycling systems. Examines specific case studies to pro- vide in-depth insights into successful waste management initiatives. 

Then, the note describes the economics of Municipal solid waste management. It reviews the cost recovery sector through end-user tariffs, the existence of positive and negative externalities, government subsidies, and funding mechanisms. This paper aims to understand how these economic factors have contributed to the sustainability of waste management services in the region.

To conclude, the note describes the levers to finance the provision of Municipal solid waste management. It describes financing options for the provision of public services (i.e., end-user tariffs, public support, and private sector participation). This part focuses on common types of financing structures used for Waste Management projects and types of funding mechanisms, such as loans, grants, and public investments. It explains the involvement of the private sector in the provision of waste management services in Latin American cities and applicability in an African context.