Opportunities for Finnish waste management companies in Russia 2020
Integrated strategy for MSW treatment in Russia creates opportunities for Finnish bioeconomy companies.
The integrated strategy for treatment of MSW has to be implemented by 2030. According to the strategy the target level of recycling is 60%. Russia has already adopted new legislation to reform waste sector. In most regions of the country the implementation of the reform started from 1.1.2019. During the first year 16 unauthorized landfills and 17 sites of accumulated environmental damage has been removed.
The biggest changes are:
Extended responsibility for manufactures and importers of certain goods and packaging (actually it has been started from 2016).
New scheme for waste management through regional operators, who will be responsible for organizing MSW management in their region (transportation, sorting, recycling, disposal etc).
Another change came into effect 14.01.2019: Russian President signed a decree on the establishment of the state-owned company for the formation of an integrated system of solid municipal waste management – Russian environmental operator (REO). This company will be responsible for the waste reform at the national level. The company’s Supervisory Board includes the Minister of the Environment, the Minister of Housing and Construction, the Minister of Industry and Trade, the Deputy Prime Minister and other senior members of the Russian government. The Russian environmental operator has to develop standards of the industry and control over their implementation as well as to create a database collecting all possible technologies, equipment and research currently available on the market (the company’s Management has already got acquainted with the world’s leading technologies during its visits during 2019, a visit to Finland included).
REO will also be responsible for public funding of investment projects. More than a billion euros would be allocated directly from the country’s budget. A state-owned company is ready to participate in projects if the share of private financing would be at least 50 percent of the total investment of the project. For strategically important projects REO can issue bonds, provide guarantees or loans. In autumn 2019 the company already audited 285 investment projects in more than 70 regions of Russia. Many other projects can count on state support as well. The list of support measures is supposed to be wide. Projects in question can be meanwhile at different stages: from at the very beginning to the end of construction works. At the moment there are about 36 projects on the list. The entire reform will allocate about 80 billion rubles by 2024.
Finland has experience from similar reforms in the recent decades and can succeed in Russian waste market.
Solutions or products needed
The new strategy is extremely interesting for example for Finnish companies in the following sectors:
- high-quality solutions in waste treatment
- bioenergy sectors
- infrastructure for recycling
- waste shipment in North
- rehabilitating landfills
- educational programs
- modernizing technology
- processing of industrial waste (metallurgical and wood) as well as solutions for collecting them
Team Finland -activities available for Finnish companies
It is strongly recommended to take an active part in various events dedicated to Waste management (St. Petersburg and Moscow, follow-up meetings with decision-makers) organized by the Consulate and the Embassy of Finland as well as in business missions to the largest cities and regions of Russia:
Fact-finding trips 2020:
Arkhangelsk, Kaluga, Yekaterinburg and Tyumen, Republic of Carelia, Komi/Syktyvkar, Krasnoyarsk or Perm (November), Murmansk and Tver.
Here you can find info on all trips.
B2B meetings with the waste sector participants, especially with The Regional waste operators. Free consultation by Finnish-Russian Chamber of Commerce and contact finding. Visits of the Heads of Municipalities to Finland.
Participating in international exhibitions:
Recycling Solutions 2020 – 28.-31.01.2020, Moscow, Expocenter
THE 20’TH INTERNATIONAL FORUM ECOLOGY OF BIG CITY | 18–20 of March 2020 | EXPOFORUM
WasteTech 2020 – 8-10.09.2020, Moscow, Crocus Expo
Recycling 2020 – 15.09.2020 – 18.09.2020, Jekaterinburg, Expo
For more information contact:
Senior Advisor, Finnish-Russian Chamber of Commerce
+7 921 869 0506
firstname.lastname@example.org (ru, eng, fi)
Russia has started to think about improving its waste management system.
Around 60 million tons (households – 50 M tons, 10 M tons MSW from business) of MSW is generated each year, amounting to more than 400 kg per capita. The volume of MSW in Russia has been steadily increasing in recent years (+3-5% each year). At present, around 93-97 percent of all MSW is sent for disposal to legal landfills (about 1100) as well as authorized waste deposits (more than 15 000) and illegal dumps (no exact information) without sorting. 5-7 percent of household waste are disposed in an environmentally friendly manner. Waste dumping is quite common.
Each year about 0.4 million hectares of land are allocated for the new landfills, which is comparable to the territory equal to Moscow and St. Petersburg combined. According to the results of the inventory of Russian territories there are 340 objects of accumulated environmental damage; quite high is a potential threat to life and health of 17 million people. The report of the World Bank warned that if Russia continued to dispose of garbage without enacting large-scale waste recovery efforts, the number of landfills would have to double by 2025 and that something should be done immediately to prevent an ecocatastrophe.
Finnish companies can offer solutions for waste collection, sorting and recycling, reuse services. Here we can talk about the supply of equipment as well as the provision of innovative technologies, which are in demand now, and in the future needs will increase significantly.
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