Circular Economy requires new market-oriented solutions

“Municipalities that does not facilitate well-functioning markets risk losing out on short-term cost benefits and obstructing long-term societal benefits, such as innovation.” says the Swedish Competition Authority’s Director General Dan Sjöblom.

There is considerable scope for increased competition in the waste management sector in the Nordic countries. This is the conclusion of a report “Konkurrens inom avfallshanteringssektorn – steg mot ett kretsloppssamhälle” (“Competition in the waste management sector – a step towards a recycling socierty”) which was drafted by the competition authorities in all the Nordic countries.

The report highlights the value of short-term changes such as improved procurements and increased competitive neutrality. In the longer run, more radical changes are needed, particularly in facilitate better or new material recycling techniques and yp increase trade in valuable materials from the waste management sector.

“Waste is increasingly being viewed as a resource. New-thinking and innovation are required for converting this potential into effective use.”
“It is also important to clarify the various roles that a municipality can play and keeping certain roles separate. Sometimes a municipality can be a provider of waste management services, and at the same time a public authority. When this is conducted in competition with other players, clarity takes on a whole new level of importance,” says Dan Sjöblom.

Read the report: Competition in the waste management sector - preparing for a circular economy