‘Policy, high cost hinder expansion in waste sector’

December 30, 2025 | 12:00am

MANILA, Philippines — High costs and limited revenue streams are restricting private investment in the Philippines’ recycling, co-processing and waste-to-energy facilities despite growing waste volumes and the introduction of Extended Producer Responsibility (EPR) legislation, according to a report by the Green Finance Institute (GFI).

Coupled with regulatory barriers, the report said that only around 900 of an estimated 4,000 obligated enterprises registered an EPR program, signifying low compliance with the law as of early 2024.

“Interviewees reported that sanctions have not been enforced, or the lack of transparency around it, introducing uncertainty over whether recyclers and co-processors can rely on EPR revenues,” the report said.

The EPR law, or Republic Act 11998, was passed in July 2022 and included a provision to provide incentives for local governments, enterprises and private entities to strengthen solid waste management and promote plastic footprint recovery.

The law aims to institutionalize the extended producer responsibility mechanism, promoting efficient waste management through waste reduction, recovery and recycling.

It also promotes eco-friendly products and full producer accountability throughout the product life cycle, aligning with global sustainability and circular economy principles.

GFI noted that new mechanical recycling and waste-to-energy facilities can cost hundreds of millions of dollars, while revenue streams such as tipping fees and power sales rarely cover debt or provide competitive returns without additional incentives.

“The Philippines does not impose a landfill tax or carbon pricing and local governments rarely set tipping fees above $10 to $15 per ton, among the lowest in Asia. By comparison, co-processing and waste-to-energy facilities require break-even tipping fees closer to $20 to $30 per ton,” it said.

It added that the situation weakens incentives for both public and private actors to invest in costlier but environmentally beneficial waste management solutions.

“Feedstock contracting remains highly fragmented across local government units, which operate under three-year election periods, making it difficult to sustain long-term public-private partnership contracts or guarantee a stable revenue base,” GFI said.

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