Team Finland Future Watch Report

1. FUTURE of WASTE MANAGEMENT
in RUSSIAN MEGACITIES
FOR TEKES INNOVATION WATCH
Finpro ry, Russia

2. • Identification of most urgent and acute waste
management problems in Moscow and Saint
Petersburg through desk study and expert interviews
• To examine identified problems critically in the mirror
of Finnish offering
• Providing ideas for further development through
analyzing the major opportunities
Work Approach

3. Finpro ry:
•
•
•
•
•
PM Olga Makeeva, senior consultant
Sergey Chernega, consultant Moscow
Helenä Lähteenmäki, Head of Trade Center Moscow
Kirsi-Maarit Poljatschenko, Head of Trade Center Saint Petersburg
Inna Semak, consultant Saint Petersburg
Solved.fi:
•
Santtu Hulkkonen, Executive Vice President
External expert team:
•
•
•
Tekes:
•
•
•
•
•
Marina Himanen, ENPI project expert, University of Jyväskylä
Jukka Loikala, Cargotec Finland Oy
Mikko Kantero, GreenSound Oy
Virpi Herranen, Head of Tekes Russia
Kari Herlevi, program director
Reijo Munther, program director
Pavel Cheshev, Tekes Russia, advisor
Asko Vesanto, financial director
Project Team

4. 60 mln tons
of SMW a year
/ 400 kg per
capita
Figures and
facts
Waste
generation
increasing
15-16% a
year
Average rate
of MSW
utilization 7-8%
Almost all
existing waste
landfills are
overfilled, no
opportunity to
enlargement.
Municipal solid
waste in
Russian Federation
Only 8% of
waste disposal
areas meet the
requirements
Currently
almost 90
billion tons
of waste
accumulated
in Russia
RUSSIAN MSW IN NUT SHELL

5. Degree of sophistication
in waste management
Russian waste management market is still in the early stage of
development, thus offering strong growth opportunities
Western Europe
Russia
Awareness
Source: Frost & Sullivan
>
Growth
>
Maturity
>
Decline?

6. Territory, km2
Population in
2013
Population in
2020
Population
density, 2013
11,7 (official data) millions
Up to 20 as per unofficial estimation
GRP 2012
MOSCOW AS EMERGING
MEGACITY
1100
274 bln EUR
+13%
10383 inhabitants / km2
The largest financial, international and
business centre. Chemical, metallurgy,
Main
food, textile, furniture, energy
production, software development and
industries
machinery. 17% of retail sales and for
13% of all construction in Russia .
 National and International Financial
Services Centre: 25-30% of Russia’s
GDP will be produced in Moscow.
 20% of Russian population will live in
Moscow agglomeration.
Scenarios /
 The city territory will grow 2.5 times
strategy of
(Big Moscow + New Moscow 1600
km2)
development –
 Skolkovo – “future/ideal town”: 4E
2020 vision
principles: ecological soundness,
ergonomic efficiency, energy
efficiency, and economic efficiency.
 150 km of new roads and 70 new
metro stations

7. Description
Agreement on cooperation between Moscow city and Moscow region governments.
Pilot MSW handling project in South-West municipal district
Development of interregional waste handling system.
Implementation
schedule
2012
2013
No data
Increasing waste disposal tariffs.
Closing down 24 out of 39 landfills in Moscow region
17 Eco-techno parks (waste recycling complexes) on the base of PPP model with
investments of 4 bln EUR to increase waste recycling from 13% to 65% and minimise
the disposal of waste at the landfills
Construction of waste incineration plants, including the largest in Europe (0.7 Mt/a),
in Moscow’s Korovino industrial area.
Equipping all waste trucks with Global Navigation Satellite Systems, GPS and onboard video cameras
Starting of 29 Moscow region landfill sites reclamation (redevelopment)
2013
2013-2020
No data
2012-2020
2013-2016
New waste management projects and
initiatives in Moscow

8. Territory, sq.
km
600
Population,
2013
5,03 (official data) mill. inhabitants
Expert evaluation 7,5 – 10 millions
Plus 134 000 inhabitants in Yuzhny
Population in
2020
Population
density
GRP, 2012
Main
industries
SAINT PETERSBURG
- the second largest
Scenarios /
strategy of
development –
2020 vision
+10%
7769 inhabitants / km2
53.5 bln EUR
Trade gateway, financial and industrial centre of
Russia. Oil and gas trade, shipbuilding yards,
aerospace industry, radio and electronics,
software and computers; machine building,
heavy machinery and transport, including tanks
and other military equipment, mining, instrument
manufacture, ferrous and nonferrous metallurgy
(production of aluminium alloys), chemicals,
pharmaceuticals, medical equipment, publishing
and printing, food and catering, wholesale and
retail, textile and apparel industries
 Centre of high-tech industry: 50% of GRP –
industry and related services (including R&D 6%
- engineering, software development, etc.)
 Increasing of environmental security
 Growth in prosperity (highly-paid working
positions (increasing of salary on 100%)
 Development of attractive urban environment
 Strengthen the status of cultural centre of Russia
(= developing education, culture, tourism)

9. Description
New Program on Solid Waste Management for 2012 – 2020 adopted in May 2012
Implementation
schedule
2012 – 2020
Construction of two new waste recycling plants with a capacity of 350 000 t
2014 >
Modernization of two existing waste recycling plants.
2013 >
Pilot project on MWS recycling in Moscovskiy, Kolpinskiy and Krasnogvardeyskiy districts
September 2013 >
Waste sorting plants to be built in Leningrad Oblast in 2013-2014 in Sosnovy Bor, Lomonosov,
Gatchina, Tosno, Vsevolozhsk and Kingisepp districts; investment for one sorting plant is 1.2-1.3
MEUR. 70% of MSW to be sorted by 2018.
2013 - 2018
Reclamation of waste landfill PTO-3
2012-2014
Two new industrial complexes for waste processing and waste disposal
by 2015
All retail estate management companies have to sign direct contracts with waste recycling plants
by 2015
New state-owned waste transportation company being established
2013 >
Development of a regional waste register (data base) and State Information System on waste
management. Waste trucks will be equipped with navigation systems
2013 >
Pilot plant on hazardous waste treatment in Krasny Bor
2014 >
New waste management projects and
initiatives in St. Petersburg

10. Non-selective waste collection
Illegal disposal of waste, lack of control
Limited financing and low prices for waste production and collection
Poor legislation that does not stimulate recycling
Lack of environmental education among population, slow adoption of waste
sorting and separation
Limited demand for recycled raw materials
Illegal disposal of waste, lack of control
Migration and social-economic stratification of society
Low quality of services, lack of professionalism and standards
Growing public and governmental awareness of environmental and
waste problems
Severe undercapacity of waste treatment facilities
Increase in prices for waste collection and transportation services
Prospects for increasing control on waste collection and logistics
Prospects for state financing of new waste management projects
Increasing competition
Growth in waste volumes through increasing consumption
Huge volumes of generated waste in landfills that need immediate
treatment
MSW management trends and market drivers

11. •
•
Exhaustion of natural resources
management
•
State/local authorities face towards MSW
•
Growing of environmental responsibility in both
Increase of eco-consciousness among Russian
population
•
public and private sectors
•
Moving from burying and incineration to recycling
•
Development of
Intensification of economic problems, global
economic recession
•
new packaging,
control, waste
Growing population
and migration
•
Formation of
management and
other technologies
•
interregional or
federal waste
International
management
companies entering
system
the Russian market

12. Opportunities for Finnish-Russian cooperation
on MSW Russian market
MSW
logistic
Education
and
competence
development
Niche
market: ecodwellings
Picture: Team Finland / Riitta Supperi
MSW
Eco-techno
parks
Developing
new waste
landfills / recultivation of
old ones

13. Mapping Finnish
expertise and
conceptualizing
Finnish offering
Monitoring on-going
projects in Russia,
identifying real
needs of public and
private clients in
Moscow, Saint
Petersburg and
other cities,
identifying
interested Russian
counterparties
Identification of
specific districts
with progressive
waste
management and
clear needs for
improvements in
St. Petersburg,
Moscow or in
other regions
Increasing
awareness of
Finnish offering in
general (a
seminar or series
of seminars)
Pilot projects
PROPOSALS ON FURTHER ACTIONS
Protocol of
intentions
between Russian
(Moscow, Saint
Petersburg) and
Finnish high-level
authorities on
waste
management
cooperation

14. THANK YOU!