Policies to Aid Informal Sectors or Recyclers

Policies aimed at aiding informal sectors or recyclers primarily focus on integration into formal waste management systems, formal recognition, and improved working conditions, contributing to a circular economy.

Key policy recommendations and initiatives include:

• Formal Recognition and Integration:

  • Policies facilitating the integration of the informal sector increase recyclable recovery rates and reduce waste management costs. Partnership with the informal recycling sector improves resource efficiency, reduces poverty, and improves the environment.
  • Formal recognition of waste pickers, along with support systems, can lead to a more organized and sustainable waste management ecosystem.
  • The Solid Waste Management Act (2011) provides a framework for waste segregation and recycling in Nepal, but its implementation often falls short. It emphasizes the 3R principle (reduce, reuse, recycle) but does not acknowledge informal recycling or the right to livelihood for the informal sector.
  • While Nepal has committed to formalizing the urban informal sector with social protection schemes through its national urban development strategy and SDG goals (like SDG 9 and 11), current efforts, such as VAT schemes, have been counterproductive, leading to neglect rather than support.
  • It is recommended that SWM acts/rules encourage local governments to recognize the informal sector, leading to eventual integration.

• Improved Working Conditions and Social Protection:

  • Policies should address the lack of formal employment rights, access to healthcare, and basic safety measures for informal waste workers.
  • Providing protective equipment, health care facilities, and educational materials for their children can improve working and living conditions.
  • The Nepal Labour Act (2017) mandates a minimum monthly wage, which some SWM companies and social enterprises adhere to. Some organizations like NEPCEMAC provide job security, Social Security Fund (SSF), and health benefits.
  • Establishing occupational health and safety guidelines applicable to all workplaces, including informal waste work, is recommended.

• Financial Incentives and Support:

  • Government incentives, such as tax breaks or subsidies for recycling and waste management companies, can encourage private sector investment in sustainable technologies.
  • Revising the tax on recycled material transport is a key recommendation to overcome challenges in promoting a circular economy through the informal sector.
  • Simplifying bureaucratic processes can encourage scrap dealers to formalize, as their reluctance is partly due to these hurdles.
  • Investment in infrastructure for proper waste management systems, including recycling facilities, composting plants, and waste-to-energy technologies, is crucial.

• Capacity Building and Organization:

  • Training vulnerable community members, including informal waste workers, for plastic waste collection and strengthening recycling facilities are crucial steps.
  • Promoting the organization of informal waste workers into cooperatives or associations is vital for their collective voice to be heard and to participate in policy shaping.
  • Successful integration examples from cities like Delhi, Nairobi, Belo Horizonte, Bogota, and Pune show that offering training, protective equipment, and better working conditions can formalize waste pickers and increase recycling rates.

• Public Awareness and Behavioral Change:

  • Intensive educational campaigns on waste reduction, proper disposal, and the benefits of recycling and composting can drive long-term behavioral change.
  • Encouraging households to segregate waste at source through clear guidelines, appropriate bins, and regular monitoring, along with incentives, is recommended.
  • Community-based programs have proven effective in promoting sustainable waste management practices, such as the Green Kathmandu Initiative and the Waste to Wealth Project in Bhaktapur.

• Partnerships and Collaboration:

  • Strengthening partnerships between local governments, the private sector, and NGOs is essential for funding and operating recycling centers.
  • Co-production models that enhance productivity and endorse collaboration between the informal sector and the state for better waste services are supported.
  • The government's current tendency to seek large transnational corporations for waste management, bypassing existing local private companies and informal sectors, is seen as counterproductive.
  • An inclusive approach to urban planning that recognizes informal workers as economic actors and integrates them into planning processes is necessary.