The Municipal Solid Waste Charging Scheme (Hong Kong), also known as the Waste Disposal (Charging for Municipal Solid Waste) (Amendment) Bill 2018, is a system for managing solid waste in Hong Kong. It implements legislation that takes effect on 1 April 2024. It adopts the 'polluter-pay' principle as first suggested by the government in 2005. It provides economic incentives for the general public to be aware of waste disposal volumes and reduce the waste they create by requiring individuals to purchase designated garbage bags or labels before disposing their trash.Legislative Council. (2023). Implementation of Municipal Solid Waste Charging. Legislative Council Panel on Environment Affairs. https://www.legco.gov.hk/yr2023/english/panels/ea/papers/ea20230714cb1-775-3-e.pdf Waste reduction was seen as a way to delay expanding Municipal Solid Waste treatment facilities. Lessons were taken from experiences in cities such as Seoul and Taipei.

A six-month phase-in period will begin on 1 April 2024 to smooth the transition to the new system, using verbal warnings rather than strict enforcement.

Program Public are charged either through designated bags or labels, or gate fee. Non-compliance results in a $1,500 fine per penalty notice.

Income from the scheme funds recycling support. Designated bags and labels can be purchased in authorised retail outlets, including supermarkets, convenience stores, online platforms and pharmacies.

Nine sizes of designated bags range in size from 3L to 100L. The price is 11 cents per litre. Larger bags allow commercial or industrial institutions to fulfil their operational needs. Individuals can purchase designated labels for large-sized disposal waste at a price of $11. For gate-fee approach, individuals are charged by weight at a price of $365–395 per ton depending on the disposal location.

Designated Bag (DB) prices +Price scheduleSizePrice (HKD)3L$0.35L$0.610L$1.115L$1.720L$2.235L$3.950L$5.575L$8.5100L$11

Gate fees +Gate feesDisposal LocationsFee per ton (HKD)Island West Transfer Station Island East Transfer Station

West Kowloon Transfer Station

Shatin Transfer Station

North West New Territories Transfer Station$395Other Refuse Transfer Stations Landfill sites$365No designated bags or labels need to be used

History

Proposal The HKSAR Government published 'A Policy Framework for the Management of Municipal Solid Waste (2005–2014)' in December 2005, offering an overview of suggestions and options in handling municipal solid waste issues. The Framework raised the 'polluter-pay' principle for the first time as a form of economic incentive for waste reduction through disposal charges and producer responsibility, with a target to be implemented in 2007 or before.Legislative Council. (2005). A Policy Framework for the Management of Municipal Solid Waste in Hong Kong. Legislative Council Panel on Environment Affairs. https://www.legco.gov.hk/yr05-06/english/panels/ea/papers/ea1215cb1-486-4-e.pdf

Trial In November 2006, the Environmental Protection Department launched a three-month trial scheme in 20 housing estates, covering public and private estates as well as government quarters. The Department collected data and responses from residents and property management companies to explore the logistics and conduct a feasibility study.

Upon completion of the first trial, a progress report was submitted in April 2009, suggesting citizens' major concern was the enforcement effectiveness.Legislative Council. (2009). Update on the Progress of the Key Initiatives in the "Policy Framework for the Management of Municipal Solid Waste (2005–2014)". Legislative Council Panel on Environment Affairs. https://www.legco.gov.hk/yr08-09/english/panels/ea/papers/ea0427cb1-1357-3-e.pdf The Department stated the importance of the ability trace waste sources, taking local constraints into account.

Public engagement In January 2012, the Government launched the first stage of three-month public consultation on charging methods, offering 4 approaches to the general public.Environment Bureau (2012). Consultation Document - Strengthening Waste Reduction: Is Waste Charging an Option?. Environment Bureau, HKSAR Government. https://www.epd.gov.hk/epd/msw_consult/file/MSW_con_doc_full_eng.pdf 63% of respondents supported the scheme, with 57% preferred charging based on weight.Legislative Council. (2012). Waste Reduction Through Municipal Solid Waste Charging: Way Forward. Legislative Council Panel on Environment Affairs. https://www.legco.gov.hk/yr12-13/english/panels/ea/papers/ea1218cb1-276-1-e.pdf Based on the responses, the Government launched the second stage of four-month public consultation in September 2013 to explore citizens' opinions on the charging level, mechanism, and coverage.Council for Sustainable Development. (2013). Waste Reduction by Waste Charging - How to implement?. Council for Sustainable Development. https://www.gov.hk/en/theme/bf/consultation/pdf/InvitationforResponse.pdf

The Environmental Protection Department rolled out a six-month pilot scheme in April 2014 in 7 housing estates. The estates were invited to select their preferred charging options among 3 choices, with data collected from the residents' waste disposal patterns analysed afterwards.

Introduction In November 2018, the Government introduced the "Waste Disposal (Charging for Municipal Solid Waste) (Amendment) Bill 2018" to the Legislative Council, proposing 'charging by designated garbage bags' and 'charging by weight'.HKSAR Government. (2018). Waste Disposal (Charging for Municipal Solid Waste) (Amendment) Bill 2018. HKSAR Government. https://www.legco.gov.hk/yr18-19/english/bills/b201811021.pdf A 12 to 18-month preparatory period was planned to be allow preparation time for the government and stakeholders, including the general public.

Concerns against the Bill were mostly raised by members from the pro-establishment parties, with focus on enforcement challenges and particular sectors, such as the increase of costs. After around 34 hours of discussion from 15 meetings, the Bill Committee decided to pause, due to the insufficiency of time to complete discussions and submit the report before the term ended. This would mean the government could reintroduce the Bill in the next LegCo term.

However, since the term of the 6th Legislative Council was extended for a year due to the pandemic, and the Bill was reactivated. The Government had amended the Bill, adding an 18-month preparatory period and free collection of food wastes from restaurants. The amendments were welcomed by the majority of the Committee members. As a result, the Bill was given third reading on 26 August 2021, and passed with 37 votes.

Implementation postponements In June 2022, the Government announced that it would conduct an open tender exercise for the production of designated garbage bags, with a target of announcing results by the year-end. However, the Government canceled the tender in November, claiming that the prices were higher than expected. The exercise was reopened in April 2023 with amendments, including the reduction of the ratio of renewable materials and allowing bidders to produce non-locally.

In July 2023, the Government postponed implementation from Q4 2023 to April 2024.

In August 2023, the Government announced that four companies had won the bag contracts.

Overseas experiences

Taipei The HKSAR Government referenced the MSW charging scheme in Taipei. According to the Government, the scheme reduced the amount of MSW in Taipei by 30%.Legislative Council. (2015). Framework Proposal for implementation of Municipal Solid Waste Charging. Legislative Council Panel on Environmental Affairs. https://www.legco.gov.hk/yr14-15/english/panels/ea/papers/ea20150225cb1-560-8-e.pdf

Seoul South Korea's MSW charging scheme relies on a per bag trash collection fee, in which multi-story buildings are placed in one of two categories.Legislative Council. (2013). Waste Treatment Policy and Measures in South Korea Background Information. Legislative Council. https://www.legco.gov.hk/yr12-13/english/panels/ea/duty_v/eavp1304-3-e.pdf For high-rise residents buildings, non-recyclable waste must be separated and the rest is disposed of in designated public collection containers. For low-rise buildings, residents separate the recyclables, but the waste is disposed of at the entrance.

Seoul stands out in its heightened focus on fly-tipping, i.e. avoiding trash bags. A reward system that relies on voluntary groups consisting of members from resident organizations and non-profit green advocacy groups encourages tipping off authorities if fly-tipping is sighted.Shvetsova, O. A. (2018, October). Development of Environmental Management in South Korea: Practice of Industrial Waste Processing. In 2018 IEEE International Conference" Management of Municipal Waste as an Important Factor of Sustainable Urban Development"(WASTE) (pp. 3-6). IEEE. Reporting is rewarded as a percent of the penalty fly-tippers are charged.Cheng, C., Zhou, Y., & Zhang, L. (2022). Sustainable Environmental Management Through a Municipal Solid Waste Charging Scheme: A Hong Kong Perspective. Frontiers in Environmental Science, 10, 919683.

In rural areas, monitoring fly-tipping is more difficult. As a result, designated plastic bags are not mandated in these areas. Public collection boxes are responsible for collecting both trash and recyclables, and charges are shared equally by all residents.

Controversies

Habit change

Property management A Greeners Action interview in 2023 showed that frontline management staff have yet to understand the scheme.Greeners Action. (2023, September 11). 90% property management staff have difficulties enforcing the MSW law. https://www.greeners-action.org/load.php?id=586529&plid=293420 Information such as vending locations, designated bag prices, and appropriate disposal practices including collection points and types of trash charged are yet to be understood. Interviewees claim that lack of government education and training pose difficulties in changing habits.HKBT. (2023, September 12). 垃圾徵費｜誤會只有按垃圾袋收費！6個伏位考起前線物管、9成認為執法有困難. Hong Kong Business Times. https://www.businesstimes.com.hk/articles/149531/%E5%9E%83%E5%9C%BE%E5%BE%B5%E8%B2%BB-%E5%9E%83%E5%9C%BE%E8%A2%8B-%E6%94%B6%E8%B2%BB-6%E5%80%8B%E4%BC%8F%E4%BD%8D-%E5%89%8D%E7%B7%9A%E7%89%A9%E7%AE%A1-%E5%9F%B7%E6%B3%95%E6%9C%89%E5%9B%B0%E9%9B%A3/

Waste collection practitioners Facing the scheme, Workers' Unions worry that frontline workers would face an abrupt change and operational challenge in collection practices, as there is insufficient personnel to monitor and report disobedient practices.HKET. (2018, November 16). 工會反對政府垃圾收費方案 憂拒收非由官袋載垃圾惹市民不滿. 香港經濟日報HKET. https://topick.hket.com/article/2210151/%E5%B7%A5%E6%9C%83%E5%8F%8D%E5%B0%8D%E6%94%BF%E5%BA%9C%E5%9E%83%E5%9C%BE%E6%94%B6%E8%B2%BB%E6%96%B9%E6%A1%88%E3%80%80%E6%86%82%E6%8B%92%E6%94%B6%E9%9D%9E%E7%94%B1%E5%AE%98%E8%A2%8B%E8%BC%89%E5%9E%83%E5%9C%BE%E6%83%B9%E5%B8%82%E6%B0%91%E4%B8%8D%E6%BB%BF

Government's response Secretary for Environment and Ecology, Tse Chin-wan, explains that a 6 month adaptation period, in which law enforcement will be more lenient, would be introduced in order to change citizens' waste discharge habits through publicity and education.

Businesses Nonetheless, there is potential for businesses to transfer the extra cost of municipal waste charge to consumers, as the charging scheme charges industrial and commercial polluters by weight per registered account, through centralised collection.Environmental Protection Department (EPD). (2023, November 7). How to charge? MSW Charging - Environmental Protection Department. https://www.mswcharging.gov.hk/en/properties/properties-how-to-charge/

Financial burden

Grassroots