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Cost Benefit Analysis of Aseptic Carton Recycling in Bandung, Indonesia

Cost Benefit Analysis of Aseptic Carton Recycling in Bandung, Indonesia. Marc-Antoine Dunais Nicholas School of the Environment Duke University. Background. In low-income Asian countries, a majority of MSW is inadequately processed Results in environmental problems

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Cost Benefit Analysis of Aseptic Carton Recycling in Bandung, Indonesia

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  1. Cost Benefit Analysis of Aseptic Carton Recycling in Bandung, Indonesia Marc-Antoine Dunais Nicholas School of the Environment Duke University

  2. Background • In low-income Asian countries, a majority of MSW is inadequately processed • Results in environmental problems • affects the health of humans and animals • causes economic and welfare losses http://cache.daylife.com/imageserve/06RpfgW1cR3Mr/610x.jpg http://a.abcnews.com/images/Technology/ap_rat_080515_ssh.jpg http://www.puravidaatitlan.org/images/index%20trashdump.jpg

  3. Background • Bandung is Indonesia’s third largest city: 6 million habitants, 3% annual population growth rate, 8000 m3 of waste generated each day Burnt (toxic fumes) Recycled Dumped (causes flooding,coastal pollution) Processed to landfills

  4. Aseptic cartons • Allow liquid food to be safely stored at room temperature without preservatives • Consist of: • paperboard (75%) • plastic (20%) • aluminum (5%)

  5. Aseptic cartons • Packaging structure more complex than plastic bottles or magazines • Recovery of all packaging components is challenging • Only 1% of cartons recycled in Indonesia • Lack of information on the recycling potential of these products • Lack of efforts so far by the private recycling sector to recycle them http://www.chinesemol.com/member/upload/product/63375151/20077151781083849.jpg

  6. Scope & objectives Explore costs and benefits of recycling aseptic cartons at BBPK, a recycling plant in Bandung • Objectives: • Determine cost of recycling cartons • Assess 3 scenarios for carton recycling at BBPK through Cost Benefit Analysis (CBA) • Provide a set of recommendations to BBPK

  7. Methodology

  8. About BBPK • Center for Pulp and Paper: parastatal body • Focus on pulp, paper and environmental issues • Activities: research, equipment calibration, certification, consulting… and recycling • Supported by Tetra Pak to initiate aseptic carton recycling in Bandung

  9. Methodology (scenarios)

  10. Results

  11. Discussion • Challenging for BBPK to achieve positive cash flow, even with Tetra Pak subsidy • By increasing recycling capacity, BBPK can reduce cash flow gap • Full extent of BBPK’s negative cash flow requires further study

  12. Recommendations • Increase recycling capacity, as there is enough raw materials to allow increased recycling rate • Sell pulp at a premium price to a niche market • Reduce Tetra Pak subsidy*progressively* http://blog.inertiabev.com/wp-content/uploads/2008/03/tetrapak.jpg

  13. Conclusions • Increase BBPK recycling capacity to reach more buyers who buy bulk; sell pulp to niche market with price premium • A slow-down in recycling will undermine market for collection and purchase of discarded cartons • BBPK will falter if subsidy is not sustained in the medium term

  14. Thank you!

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