Municipal Solid Waste Charging Scheme (Hong Kong)

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The Municipal Solid Waste Charging Scheme (Hong Kong), which is also known as the Waste Disposal (Charging for Municipal Solid Waste) (Amendment) Bill 2018, is a piece of legislation which will come into effect on 1 April 2024. [1] The Scheme was designed based on the 'polluter-pay' principle as first suggested by the government in 2005, providing economic incentives for the general public to be aware of the waste disposal volume and develop a habit in waste reduction, by requiring individuals to purchase designated garbage bags or labels before disposing their trash. [2]

Contents

References were taken from experiences in other nearby cities like Seoul and Taipei during the bill drafting process, aiming at taking it to increase the effectiveness in educating the public on the significance in reducing personal waste as a long-term solution instead of expanding Municipal Solid Waste treatment facilities in response to the rise of waste disposal every year. [2]

A six-month phase-in period will be taken place from 1 April 2024 to offer citizens a smooth transition at the beginning of the implementation of the Scheme, with the use of verbal warnings rather than strict enforcement. [3]

Policy overview

Public are charged in two ways, either through designated bags or labels, or gate fee, as aligned with the polluter-pay principle, starting from 1 April 2024. [4] Any non-compliance will lead to a $1,500 fine per penalty notice. [5]

Since the proposal of the scheme, the government aims to launch a programme to reduce waste disposal and increase items to be recycled by the public. The "polluter-pay" principle is used as a form of economic incentive to encourage them to develop recycling habits. [2] At the same time, income from the scheme will be used to fund recycling support for both domestic and commercial sources. Designated bags and labels as the form of charging can be purchased in authorised retail outlets, including supermarkets, convenience stores, online platforms and pharmacies. [6]

For designated bags, nine types of bags with volumes between 3L and 100L, will be sold at a price of 11 cents per litre, while larger bags will be sold for commercial or industrial institutions to fulfil their operational needs. [4] Individuals can also opt to purchase designated labels for large-sized disposal waste at a price of $11. [4] For gate-fee approach, individuals will be charged in weights at a price of $365–395 per ton depending on the disposal location. [4]

Prices of Designated Garbage Bags (DBs) [4]

SizePrice (HKD)
3L$0.3
5L$0.6
10L$1.1
15L$1.7
20L$2.2
35L$3.9
50L$5.5
75L$8.5
100L$11

Prices for Gate-fee approach [4]

Disposal LocationsFee per ton (HKD)
Island West Transfer Station

Island East Transfer Station

West Kowloon Transfer Station

Shatin Transfer Station

North West New Territories Transfer Station

$395
Other Refuse Transfer Stations

Landfill sites

$365
No designated bags or labels need to be used

History & development

First proposal of MSW charging

The HKSAR Government published 'A Policy Framework for the Management of Municipal Solid Waste (2005–2014)' in December 2005, offering an overview of its suggestions and strategic plans in handling municipal solid waste issues in Hong Kong. [7] The Framework raised the 'polluter-pay' principle for the first time as a form of economic incentive for waste reduction through disposal charges and producer responsibility scheme, with a target to be implemented in 2007 or before. [8]

Trial of MSW charging

In November 2006, the Environmental Protection Department launched a three-month trial scheme in 20 housing estates, covering public and private estates as well as government quarters. The Department aims at collecting data and responses from residents and property management companies to explore the logistical arrangements and conduct feasibility study for the proposed charging scheme. [9]

Upon completion of the first trial, a progress report was submitted to the Legislative Council in April 2009, suggesting citizens' major concern is on the effectiveness of enforcement. [10] The Department also stated the importance of the ability in tracing the sources of the municipal solid wastes, which would take local constraints into account when formulating the policy. [10]

Public consultation and engagement

In January 2012, the Government launched the first stage of three-month public consultation on the charging methods, with 4 approaches provided to the general public. [11] 63% of the respondents supported the scheme, with 57% of them preferred the use of weight principle in charging. [12] Based on the responses collected, the Government then launched the second stage of four-month public consultation in September 2013 to gain citizens' opinions on the charging level, mechanism, and coverage. [13]

The Environmental Protection Department also rolled out a six-month pilot scheme in April 2014 in 7 housing estates. The estates were invited to select their preferred charging options among the 3 choices provided, with the data collected from the residents' waste disposal patterns analysed afterwards. [14]

Introduction of the bill

In November 2018, the Government introduced the "Waste Disposal (Charging for Municipal Solid Waste) (Amendment) Bill 2018" to the Legislative Council for the first time, proposing two charging modes including 'charging by designated garbage bags' and 'charging by weight' to be applied in the Scheme. [15] A 12 to 18-month preparatory period was also planned to be introduced after the passage of the Bill to allow sufficient preparation time for the government and various stakeholders including the general public. [15]

Concerns against the Bill were mostly raised by members from the pro-establishment parties across the months, with focuses on the enforcement challenges and views from particular sectors that they represent, such as the increase of costs. After around 34 hours of discussions from 15 meetings since the introduction of the Bill, the Bill Committee decided to discontinue the scrutiny over the Bill on 22 June 2020 due to the insufficiency of time to complete discussions and submit the report to the Legislative Council before the term completion of this Council. [16] This would also mean the government could only reintroduce the Bill in the next term of service of the LegCo.

However, since the term of service of the 6th Legislative Council was extended for a year due to COVID-19, and the discussion of this Bill was reactivated again in the Bill Committee. The Government had also made amendments to the Bill, including setting up an 18-month preparatory period with the date compromised with the LegCo and free collections of food wastes from restaurants. [17] The amendments were welcomed by the majority of the Committee members. As a result, the Bill was given the third reading on 26 August 2021, and it was passed with 37 votes in the Council meeting on the same day. [17]

Postponements of the implementation date

In June 2022, the Government announced that it would conduct an open tender exercise for the production of designated garbage bags in the same month, with a target of announcing the results by the end of the year. [18] However, the Government decided to cancel the tender exercise in November, claiming that the tender price is higher than expected. [19] The exercise was then reopened in April 2023 with amendments made, including the reduction of the ratio of renewable materials and allowing bidders to produce non-locally. [20]

In July 2023, the Government announced a postponement of the implementation date from Q4 2023 to April 2024, stating that as a response to the opinions of relevant sectors; and the Government will not postpone the implementation date further anymore. [21]

In August 2023, the Government announced that four companies won the contracts for the production of designated garbage bags, which were expected to start production in October and able to supply sufficient amount before the implementation of the charging scheme. [22]

Overseas experiences

Taipei

The HKSAR Government has made reference to the existing MSW charging schemes in other cities, with Taipei being one of them as a reference of the high-density setting. According to the Government, the amount of MSW in Taipei has been reduced by 30% after implementing a quantity-based charging scheme, reflecting that a MSW charging scheme can effectively serve as a financial incentive to encourage the public to cultivate waste reduction habits. [23]

Seoul

South Korea's MSW charging scheme relies on a Per Bag Trash Collection Fee System, in which multi-story buildings are subdivided into two separate categories. [24] For residents of high-rise buildings in Seoul, the non-recyclable waste must be separated and the rest would be disposed of in designated public collection containers in the public area of the building. For low-rise buildings, residents would also have to separate the recyclables, but the waste would be disposed of in front of the entrance of the residence. [24]

Seoul stands out in its heightened focus on fly-tipping, i.e. not making use of designated trash bags. A reward system that relies on voluntary groups consisting of members from residents' organizations and non-profit green advocacy groups encourages tipping off authorities if fly-tipping is sighted. [25] Reporting of the behaviour could be rewarded at most 80% of the penalty fly-tippers receive. [26]

In rural areas, monitoring fly-tipping becomes more difficult. As a result, designated plastic bags are not mandated in these areas. Public collection boxes are responsible for collecting both trash and recyclables, and the charges are shared equally by all residents in the rural areas. [24]

Controversies

Habit change

Property management

A Greeners Action interview in 2023 shows that frontline management staff are yet to have comprehensive knowledge towards the scheme. [27] Information like vending locations, prices and sizes of designated bags, and accurate disposal practices like collection points and types of trash charged are yet to be thoroughly understood by frontline management staff. [27] Interviewees also claim that lack of government education and training would pose difficulties in changing public waste discharging habits. [28]

Waste collection practitioners

Facing the scheme, Workers' Unions worry that frontline workers would face an abrupt change and operational challenge in collection practices, as there is insufficient personnel to monitor and report disobedient practices. [29]

Government's response

Secretary for Environment and Ecology, Tse Chin-wan, explains that a 6 month adaptation period, in which law enforcement will be more lenient, would be introduced in order to change citizens' waste discharge habits through publicity and education. [29]

businesses

Nonetheless, there is potential for businesses to transfer the extra cost of municipal waste charge to consumers, [29] as the charging scheme charges industrial and commercial polluters by weight per registered account, through centralised collection. [30]

Financial burden

Grassroots

Workers' Unions claims that the Municipal Waste Charge is regressive. It is punishing for the grassroots, as the charge occupies a larger portion of their income when compared with the middle and upper class. [29] [31] It fails to restrain the wasteful practices of the rich. [29] Furthermore, non-CSSA beneficiaries, despite not being major polluters, do not enjoy preferential treatment from the government, and in turn face heavy extra charges from their subdivided flat landlords or simply through buying designated bags. [32]

Practitioners

Frontline staff are worried that uncollected waste charges would potentially be transferred from households to them when they have to collect municipal solid waste that are not wrapped in designated bags, given their difficulty to locate disobedient households. [28]

Government response

The Environmental Protection Department attempts to alleviate grassroot financial burdens by introducing a 6-month distribution of free designated bags at public housing estates, 3-nil buildings, and rural villages. [33] A permanent 10-dollar extra subsidy would also be introduced for CSSA beneficiaries. [34]

Legislative council members

Hui Chi-fung, a member of the Legislative Council in 2017, agreed that the bill could help the public to develop the habits of waste reduction. However, he also mentioned that the government should promote to the public the purpose of the scheme, namely to reduce the amount of MSW rather than increasing government's income. [35] He hoped that the government would not easily postpone the implementation date whenever it encouraged difficulties. On the other hand, he expressed concern about increasing the burden on grassroots households. He suggested that the government could reduce the amount of charges during the initial launch. However, for the long term, the government should provide subsidies to for those low-income groups in order to lower their burden.

Another Legco member, Shiu Ka-fai, has similar views to Hui. He agrees that the charging scheme can make the landfill more sustainable but the low-income group may not be able to afford the new expenditure. [36] He suggested that not only the government could offer them financial support but also political organisation could set up fund-raising schemes to distribute the designated bags.

Law enforcement

Environmentalists worry that it would be hard for law enforcers to identify and validate usage of designated bags in actual practice, when sealed garbage chute systems, common in Hong Kong buildings, compress trash and tear open the layers of trash. [37]

Property management

Property Management practitioners would also face difficulty in searching for disobedient practices and ensure usage of designated bags in household waste collection settings, given that surveillance is unavailable and costly for them, [28] and that they lack enforcement power. [29]

3-nil buildings

In 3-nil buildings, potential littering problems and public hygiene hazards might arise from neglected, wrongly disposed municipal solid waste, [38] as the effective 'by household' or 'by property' collection methods are unavailable in such premises. [39]

Disobedient citizens

Street municipal solid waste collectors would also face potential conflicts with disobedient citizens when they have no law enforcement power, but a heavy responsibility to city hygiene. Social workers fear that this might pose workplace safety risks to them. [38]

Legislative council members

Cheung Yu-yan is one of the Legco members who opposed the bill. He claimed that the bill was too complicated for the public to understand. Some people may be penalized by law enforcement department for accidentally disposing waste illegally. [40] In addition, he questioned why restaurant needed to be responsible for their customers. He stated that the amount of food waste depended on the customer, so restaurants should not be charged. [40] Moreover, another Legco member, Elizabeth Quat, has also expressed concern about sanitation. As some citizens may refuse to follow the bill, they will dispose of garbage illegally and avoid law enforcement which may lead to hygiene problems. She hoped that the government could monitor some high-risk places, such as the three-nil buildings. [40]

Government preparations

To prepare for the implementation of the scheme, the Government has been conducting works in (1) recycling, (2) publicity campaigns, (3) additional support for citizens, and (4) scheme managements.

Recycling

As recycling is effective in reducing waste, the government aims at encouraging the public cultivate the habit of recycling by setting up more recycling points to enhance citizens' convenience. In particular, the Environmental Protection Department has set up more than 160 recycling points for the public through the programme of GREEN @COMMUNITY. [41]

To further encourage the public to recycle more in order to achieve reduction in waste disposal, small recycling stores will be set up in 50 public rental housing (PRH) estates for residents. [42] The stores will reward residents who recycle frequently with designated recycling bags.

At the same time, given that 30% of MSW sent to landfills is food waste, the Government will facilitate central collection of food waste to effectively reduce the amount of waste. [2] The Government will launch a trial scheme in PRH estates which aims to collect food waste from 100 public housing blocks by the end of 2023. [2]

Publicity campaigns

The Government has divided the promotion and public education into three periods. The first period began in August 2023 and focused on promoting the implementation time of the scheme and the "Recycle more, Dump less, Conserve more" lifestyle. [43] The practices of different sectors in the scheme were also discussed. The second period will promote different charging practise and educate the public how to prepare for the scheme. [2] The third period will begin two months before the implementation date of the scheme that focus on the retail network of the DBs and encourage the public to follow the bill. [2]

Throughout the publicity period, the Government has also prepared promotional videos narrated in other languages and promotional radio broadcasts targeted for foreign domestic helpers as well as the elderly respectively to inform them better the details of the upcoming MSW Charging Scheme. [2]

Additional support for citizens

It has been a concern by scholars, non-governmental organizations and LegCo members that the Scheme will become an additional expenditure and hence become a significant financial burden to some grassroots, such as residents staying in rural villages, three-nil buildings and PRH estates. [2] [44] [45] In view of this, the Government has planned to provide these households with 20 free designated garbage bags each month for the first six months to alleviate the financial pressure while help them to gradually cultivate the habit of recycling in a long run. [26]

A 10HKD monthly allowance will also be offered by the Government to those who are currently receiving the Comprehensive Social Security Assistance and Old Age Living Allowance. [46]

Scheme managements

Two new systems have been developed by the government to support the management of the scheme, namely SIM (Smart Inventory Management) and MID (Manufacturing, Inventory and Distribution). SIM facilitates logistics and demand monitoring for both government and retailers, as well as providing public access to retail locations and reporting functionality. [2] MID helps to manage the supply of bags and labels to ensure compliance with tendering requirements. [2]

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