Proceedings Report: Mainstreaming Circular Economy in Nepal

Himalayan Circular Economy Forum (HiCEF) Dialogue Mainstreaming Circular Economy in Nepal

Proceedings Report 20 September, 2019

Session Details Waste management and u5liza5on is an integral component of the transi5on from a linear to a circular economy. Nepal currently produces an es5mated 2000 tons of solid wastes (60% organic and almost 20% plas5c) each day, and more than 80% of this is dumped at landfill sites, riverbanks and city outskirts. Due to this, the landfills are maxing out on their capacity.

Addi5onally, while waste has been u5lized to produce energy and secondary materials globally, Nepal is failing to grasp this and so has missed golden opportuni5es like the produc5on of 6 MW electricity per day from organic waste.

Even though the age-old culture of circular prac5ces and burgeoning environmental startups has increased prospects for a circular economy in Nepal, the country lacks an integrated approach and acceptance for its smooth transi5on. Hence, this session delved into discussions to realize Nepal’s poten5al towards a circular economy and inform on the extent to which its core principles - recycle, reuse and reduce have been prac5ced.

The session further highlighted some of the exis5ng best prac5ces and provided recommenda5ons for mainstreaming circular economy in the na5on.

Speakers:

Maarten Nijhof

Managing Director, Biocomp Nepal

Nabin Bikash Maharjan

CEO and Co-founder, Blue-Waste to Value

Narayan Prasad Chaulagain Senior Energy Expert, GIZ

Moderated By: Sneha Pandey

Graduate, The Yale School of Forestry and Environmental Studies

Maarten Nijhof


Managing Director, Biocomp Nepal Maarten Nijhof highlighted the need to manage waste to lay the founda5on for circular prac5ces in Nepal. Since waste management is a huge part of the circle, he believes that adop5on of conscious packaging and designing strategies in coordina5on with produc5on, collec5on, compos5ng and recycling departments can ensure the principle of circularity.

Even within his business prac5ce, he acknowledged that the prac5ce of collec5ng waste, compos5ng into usable fer5lizers and selling it back to farmers is in line with the circular process.

Undertaking this process would mean commi]ng and performing every segment of the circle, which can then push for a sustainable ecosystem.

However, in the process of circularity, a major problem comes in at the 5me of segrega5on of wastes. There are hardly any prac5ces of segrega5on of municipal solid waste into organic and inorganic wastes, leading to plas5cs ge]ng transferred to the recycling units. In Nepal, dumping old products without considering its alterna5ve usage is quite prominent. This kind of impediment breaks the con5nuity of the circle. Currently,

because of a complicated segrega5on process, there is a transfer of responsibility of the plas5c wastes from one unit to another. This is why, he believes that it is important to understand how each component of the circle works.

Moving forward, he also emphasized that mere acknowledgement of the problem is not enough and that there is a need to involve individuals from grassroots level. He underlined that change should commence from the way people use, reuse and recycle their waste. Despite dis5nct eorts from individuals involved in circular prac5ces, awareness on how to repair used materials is inadequate. Thus, sensi5zing people regarding needs and wants is cri5cal to pursue a sustainable trajectory.

Prac5cally, farmers are the ones who understand the importance of compost. Thus, inducing them to reduce the prac5ce of chemical pes5cides in their produc5on processes assures the availability of organic raw materials, which can later be composted.

Lastly, he vouched for the importance of subsidies granted by the government to recycling units. In the absence of ra5onal incen5ves from the government, ini5a5ves undertaken by the private sector end in fu5lity. Moreover, waste companies inves5ng in recycling and compos5ng also need substan5al security to minimize their risk and maximize their yield in the long run.

Nabin Bikash Maharjan

CEO and Co-founder, Blue Waste to Value Recalling his experiences, Nabin Bikash Maharjan spoke at great length about the solid waste management scenario in Nepal. He emphasized that circular economy is not only about taking ideas and combining it with technology. For its effec5ve implementa5on, there is a need for efforts at an individual level, as managing waste would require commitment from everyone.

Moving on, Nabin agreed upon the fact that Nepal has a very good solid waste management act. However, solid waste management is not taken as a na5onal priority. Due to this, the implementa5on of the act has been flawed, and poor administra5on of the government has created further hurdles in the implementa5on. Adding to this, good ini5a5ves have not been sustainable. To support his claim, Nabin presented an example - Kathmandu Metropolitan City (KMC) had begun to fine people who throw cigareee bases at the roadside.

However, the ini5a5ve dried out afer the earthquake.

In this background where circular prac5ces are hard to sustain,

he believes that certain steps are needed to be taken and used as solu5ons. He insisted that the ‘Polluters’ Pay Principle’ can be of great help while implemen5ng the circular economy. If companies who pollute are asked to bear the costs of managing it, they would be reluctant to pollute. Along with this, he emphasized the need to incen5vize organiza5ons working in the area as they face lots of hurdles, especially while impor5ng new instruments and technologies. To aid them, he proposed tax holidays and viability gap funding. Organiza5ons could further be given subsidies when they import technologies that benefit the environment. Addi5onally, having environment-friendly local government frameworks also become important. An example of this would be Tiloeama Municipality’s plas5c bag prohibi5on campaign in 2018.

Ci5ng these examples, he pointed out that while there have been some posi5ve aeempts, the solid waste management sector s5ll has a long way to go. However, there is a need for collabora5ve efforts to help bring out the desired results and change our basic approach on focusing only on individual efforts. Thus, summing up, he men5oned that a complete solid waste management system requires source segrega5on along with waste reduc5on.

Narayan Prasad Chaulagain
 Senior Energy Expert, GIZ Coming from an energy sector background, Narayan Chaulagain revolved his discussions largely on the rela5on between energy and circular economy. He believes that Nepal has a huge poten5al in the energy sector in terms of its genera5on. If it is complemented by eďŹƒcient usage of energy through the incep5on of the 3Rs i.e. reduce, reuse and recycle, a circular movement can be explored. For instance, renewable energy can reduce carbon by replacing fossil fuel. A sustainable impact can be created if the policy documents such as the Na2onal Energy EďŹƒciency Strategy are advocated. Further, using exis5ng materials in innova5ve ways, like electricity in the form of electric vehicles, as well as recycling solid waste and energy, which are two of the major components of a vast circle, can altogether drive down wastes. When a start is made in this manner, the gradual adop5on and acceptance towards other circular prac5ces can also be expected.

Having established a baseline on the possibility of a circular economy with respect to renewable energy in Nepal, he also pointed out some of the barriers facing its proper execu5on. He

underlined that the biggest impediment is the habit and resistance to change supplemented by a lack of strong campaigns and awareness programs. Crea5ng awareness in a single household about circular economy is not enough. It has to be deeply embedded in the educa5on system and reected in all of the families, communi5es, and ins5tu5ons. He believes that lack of knowledge and informa5on has kept people from understanding the importance of the movement towards circularity and sustainability. Thus, the tendency to hide behind normality or regularity needs dire change.

Lastly, he appended that the government has not yet priori5zed circular prac5ces because of limited resources. The three-5er government under federalism lacks empowerment at each level. An enabling environment with a suppor5ve regulatory, ins5tu5onal and policy framework, reinforced by poli5cal will and commitment, is crucial. All of this can collec5vely uphold the actualiza5on of circular economy in Nepal.

Sneha Pandey Graduate, The Yale School of Forestry and Environmental Studies The transforma5on from the current linear economy to a circular one through the adop5on of circular prac5ces is not an overnight process. The inability to create a regenera5ve waste system and iden5fy the economic benefits behind the concept of the circular economy further makes the process difficult.

In this context, Sneha Pandey, the moderator of the session, floated the discussion around the integral components of a circular economy and the ways to integrate circular prac5ces in the daily lives of the people. She also encapsulated queries and no5ons around the circular economy which leads people to believe that it is only suited for developed economies.

However, private businesses have been emerging in the market and undertaking the concept of circularity suited in Nepal. To acknowledge this, along with behavioral change, the need for a par5cipa5ve government in managing the poten5al and growing concerns were also highlighted.

Key highlights: • For a circular economy to essen5ally develop in the context of Nepal, beginning with the 3Rs, i.e. reduce, reuse and recycle, and gradually iden5fying other components of the circle that suits the economy best has to be emphasized.

• Priori5zing efforts to remove impediments such as lack of awareness about circularity, and resistance to adopt a circular economy can further strengthen the efficient implementa5on and administra5on of a circular economy in Nepal.

• Exploring businesses and entrepreneurs who are using eco-friendly prac5ces, and engaging them through these forums, like HiCEF, is essen5al in order to push the economy towards a circular growth.