A System Operator for Waste Management: Lessons from Energy

What is it about?

Waste management is often handled at the local level, with different rules and approaches across countries. However, as circular economy goals become more ambitious, there is a growing need to improve both environmental performance and cost efficiency in the sector. Our study suggests introducing a system operator—a neutral entity that coordinates and supports waste management, similar to what exists in the energy sector. This operator would help track environmental progress, ensure universal service, support local authorities, and improve overall efficiency. By learning from energy markets, we propose a governance model that can better organize waste management, helping it transition toward a more circular and sustainable future.

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Photo by Dylan Gillis on Unsplash

Photo by Dylan Gillis on Unsplash

Why is it important?

Waste management is a complex sector involving multiple stakeholders—municipalities, private companies, and regulators—yet it often lacks a coordinated governance system. Without clear oversight, inefficiencies persist, making it harder to achieve circular economy goals. Our work highlights the urgent need for a system operator to bring structure to the sector. By coordinating activities, monitoring environmental targets, and supporting local authorities, this operator can improve circularity and efficiency. Learning from the energy market, we propose a governance model that ensures waste management is not just a service, but a driver of sustainability and resource optimization.

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