Near Zero Waste

Location:

Turkey

Project number:

47213

Business sector:

Notice type:

Private

Environmental category:

C

Target board date:

22 Jul 2015

Status:

Board Approved

PSD disclosed:

19 Feb 2015

Translated version of this PSD: Turkish

Project description and objectives

The EBRD is considering launching a USD 22.4 million programme to support waste minimisation projects in Turkey. The project will utilise a dedicated allocation of up to USD 20 million from the Clean Technology Fund (CTF), as well as a USD 2.4 million technical cooperation package from the European Union’s (EU) Instrument for Pre-accession Assistance.
 
NØW will be structured as an envelope programme, whose funds will provide support to at least ten to twelve demonstration projects. The CTF component will be restricted to no more than 20 per cent of the project cost, and will be used in parallel with EBRD and other commercial co-financing.
 
The project will assist early movers in Turkey with the implementation of best available techniques and technologies for waste minimisation. The NØW Programme will enable investments in projects that would not otherwise be implemented, thereby helping clients to fully unlock the potential for waste minimisation, recycling and/or waste value extraction, including waste-to-energy.
 
The Programme will also provide technical cooperation (TC) to promote best practices in the development of waste minimisation projects. Specifically, the TC will deliver an in-depth assessment of the potential sectors and waste streams to be targeted; conduct technical assessments and advisory services to guide EBRD’s activities under NØW; and manage policy activities with the relevant ministries, municipalities and sector associations to achieve an integrated waste minimisation and valorisation policy framework.
 
In Turkey, the waste sector contributes 8.5 per cent of the country’s greenhouse gas emissions, which is four times higher than in many developed countries. The causes of high emissions from waste include emissions from landfills, wastewater and increased consumption associated with rising standards of living. An intervention in the waste sector in Turkey can help to remove barriers to improving waste management and making it more sustainable, moving Turkey toward greater resource efficiency.
 
The primary barriers include
 
(i) the lack of an integrated approach to waste minimisation;
(ii) insufficient infrastructural capacity;
(iii) limited coordination among stakeholders;
(iv) information asymmetries between parties;
(v) limited expertise and capacity on the part of public institutions and enterprises; (vi) the lack of long-term financing for implementation or expansion of waste minimisation investments; and
(vii) insufficient monetisation of waste-related environmental externalities.
 

Transition impact

The project is expected to have the following sources of transition impact:
Demonstration effect. The Programme will have a significant demonstration effect by supporting companies where there are clear disadvantages in undertaking waste minimisation investments as an early mover in a respective market, where waste levels are rapidly growing and solutions have not yet been put in place. By assisting in the development of approval procedures and project implementation of early adopters in different sectors, the Programme will help establish commercial standards that can be replicated and will encourage other developers to enter the market. Such demonstration effect and subsequent replication may support in stimulating regulatory changes to create an enabling environment for the replication of the relevant technologies and/or best practices.
 
Framework for markets. Part of the TC funds will be used to continue the dialogue with the Turkish authorities (both at Government, municipal and sector association level) on the monitoring and enforcement of relevant legislation to support waste minimisation, as well as in building the necessary institutional capacity for its implementation. Additionally, the Bank aims to support the development of independent MVE systems and enforcement mechanisms to achieve established recycling targets. The above would create a proper framework for the development of waste minimisation systems and incentives in Turkey and will help the country in its much-needed efforts to minimise waste stream volumes, reduce the environmental impact of waste and promote the efficient use of resources.
 
Skills transfer and knowledge-sharing. The Programme is also expected to build and transfer expertise related to waste minimisation to Turkish companies. In particular this will bring much needed expertise in techniques for waste minimisation, as well as promotion of waste management approaches and assistance to coordinating to different stakeholders (public and private) in monitoring and coordinating different waste streams. The Bank will explore the possibility for Turkish corporates to join existing business platforms for transitioning to a circular economy framework.
 

The client

The NØW Programme’s funds will be available to clients of the EBRD with a private-sector focus but may include municipalities and/or municipal companies. These will be clients implementing sustainable, state-of-the-art waste minimisation technologies and processes with high potential for replicability and, in the case of private-sector clients, where there are clear market failures preventing investments.
 

EBRD finance

None under this specific Programme.
 
EBRD commercial financing will comprise at least 80 per cent of the total individual investment costs.
 

Total project cost

USD 22.4 million Programme
 

Environmental and social categorisation, impact, and mitigation

The Programme itself is not categorised. Sub-projects will be categorised on a case-by-case basis, undergo appropriate E&S due diligence and structured to meet applicable EBRD Performance Requirements. The ESDD will need to address specific GEF and CTF requirements, including gender assessments. The programme is expected to have significant positive impacts through assisting companies in Turkey with implementation of best available techniques (“BAT”) for waste minimisation in line with the Bank’s ES Policy requirements. An ESAP and SEP will need to be developed for each sub-project. The achieved environmental benefits should be closely monitored and measured on project-by- project and portfolio basis.
 
It is expected that the overall project will help to increase the amount of recycled packaging waste by 20,000 tonnes per year, reduce the amount of landfilled waste by 50,000 tonnes per year, and reduce GHG emissions by at least 100,000 tCO2e per year. The project will also help Turkey’s harmonisation with EU waste management directives by assisting the Government of Turkey, local municipalities and sector associations in improving the existing legislative framework and monitoring, verification and enforcement practices as well as by raising awareness on resource efficiency policy, voluntary guidelines, regulations, BATs, pilot projects and best practices.
 

Technical cooperation

Technical cooperation will be funded by the 2013 EU Energy IPA for Turkey.
The Bank will support waste minimisation development in Turkey through a comprehensive TC package: “Catalysing Near Zero Waste Investments in Turkey.” The Programme will rely on EUR 2.1 million (approximately USD 2.4 million at current exchange rate) in EU Instrument for Pre-accession Assistance 2013 funds mobilised by the Bank.
 
These funds will provide for:
 
Project Preparation Assessment
  • business development and pipeline preparation
  • resource efficiency audits
  • assisting the Bank in reviewing/developing bankable investment programmes
  • perform pre-feasibility studies for waste management and resource efficiency projects
Project Implementation Assessment
  • providing training services to ensure clients are able to implement and manage efficient production systems on a sustainable basis
  • review of basic implementation strategy
  • project management support
Knowledge-Sharing, Market and Technical Studies
  • workshops/knowledge exchange activities and communication material for specific sectors
  • specific studies on topics or markets related to waste minimisation or waste-to-energy technologies
  • support the Bank assessing technical and economic potential of waste management technologies across different sectors of the economy
identification of existing barriers for the expansion of waste minimisation investments in the country (e.g. institutional barriers, capacity development needs, legal limitations) and strategies to address these barriers and reduce investment risks.
 

Company contact

Dr. Adonai Herrera-Martinez
Principal Manager
Tel. + 90 549 72 48 090
Email: martinea@ebrd.com
 
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.