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Part 3: Identifying funding criteria for the Waste Minimisation Fund

Introduction

The Waste Minimisation Fund is being established to fund waste minimisation projects. We will invite proposals for funding, which will be assessed against a published set of criteria. Proposals approved by the Minister for the Environment will be funded.

Funding may be allocated to:

  • projects that promote or achieve waste minimisation

  • help establish waste infrastructure

  • encourage innovation and the development of new technology for product design, production, reuse and recycling

  • provide opportunities for businesses operating in, or entering, the waste minimisation sector.

The issues we want you to consider for Part 3

We want your feedback on proposed criteria for assessing which proposals should receive funding from the Waste Minimisation Fund.

We are looking for feedback on high-level themes and criteria, rather than on which specific projects should be funded.

Please do not send us details of a project that needs funding.

The foundations of the Waste Minimisation Fund

The Waste Minimisation Act provides for a waste levy (set at $10 per tonne of waste disposed of at disposal facilities) to be spent on waste minimisation. The purpose of the waste levy, as set out in section 25 of the Act, is to:

  • raise revenue for promoting and achieving waste minimisation

  • increase the cost of waste disposal to recognise that it imposes costs on the environment, society and the economy.

The Act specifies that the waste levy funds are to be allocated as follows:

  • Half of the levy funds will be distributed to territorial authorities, on a population basis, to help with implementing their waste minimisation and management plans.

  • The other half of the levy, less administration costs, is available for funding waste minimisation projects.

Section 38 of the Act states, “the Minister may approve funding of any project to promote or achieve waste minimisation”. In deciding whether to approve funds, the Minister must consider any criteria for approving funding of projects which have been notified in the New Zealand Gazette. The criteria are established or amended by the Minister after considering the advice of the Waste Advisory Board. The Act allows any funding of projects to be on conditions set by the Minister. The conditions could include repayment requirements which could be used to ensure some funding is by way of loan rather than grant. At this stage it is planned that the funding would be by way of grants.

Fund scope and operation

Projects funded from the Waste Minimisation Fund must promote or achieve waste minimisation. Waste minimisation, as defined in the Act, covers the reduction of waste and the reuse, recycling and recovery of waste and diverted material. It does not extend to treatment and disposal.

Applicants for funds will be required to submit detailed proposals in a formal funding round. Proposals will be assessed by the Ministry and those best fitting the notified criteria will be recommended for consideration by the Minister. If approved, the project proposal will provide the basis for a contract with the Crown for funding.

The Waste Minimisation Fund will only allocate money that has already been collected through the levy and passed to the fund for distribution. It is proposed that the contract will include project milestones that must be achieved to receive and retain funding. Those receiving funding will be required to report regularly on progress.

Proposed criteria for comment

We propose the following criteria for assessing applications to the fund:

  1. Funding is for waste minimisation projects – waste minimisation covers the reduction of waste and the reuse, recycling and recovery of waste and diverted material.

  2. Funding is for projects – it is not for the ongoing financial support of existing activities and nor is it for the running costs of organisations, individuals, councils or firms.

  3. Funding will not be provided for projects where alternative, more suitable, funding streams already exist, such as the Sustainable Management Fund, the Contaminated Sites Remediation Fund, or research funding from the Foundation for Research, Science and Technology.

  4. Projects must implement new initiatives or expand on existing activities to address waste minimisation. The intention is to increase the range and scope of waste minimisation in New Zealand and not to duplicate existing activities in either the private or community sectors.

  5. There must be a degree of confidence that the applicant can deliver the project.

  6. There must be a degree of confidence that the project can achieve its goals.

  7. Funding can be for operational or capital aspects of a project. The level of funding from other sources is a consideration and part-funding is preferred.

  8. Projects will be assessed for their strategic value, from which other waste minimisation projects may benefit or be developed.

  9. Preference will be given to projects that collectively give the largest sustained net benefit in environmental quality from the funding available. This covers the cost effectiveness of the projects collectively and the extent to which they address the volume and harm associated with waste products.

Additional issues that could be included in the criteria are:

  1. Scale – the fund may give preference to larger projects that give benefits of national and environmental importance/significance.
  2. Innovation – the fund may encourage new and innovative approaches to solving waste problems.
  3. Research and development – preference may be given to projects related to new and innovative markets for recycled and recovered materials.
  4. Legacy waste – preference may be given to projects dealing with legacy waste with no identified owner.
  5. Targeting to particular waste or waste streams – for such targeting to occur, priorities would need to be identified.
  6. Repayment conditions – these could be used in the future for projects that have commercial potential to provide ongoing revenue.

Questions for Part 3

Use the following questions to guide your feedback on criteria for the Waste Minimisation Fund. You do not have to answer every question.

  1. Are the criteria identified by the Ministry for the Environment appropriate for determining projects that may be funded by the Waste Minimisation Fund?
  2. If you do not agree with the criteria, what changes would you suggest?
  3. Do you think additional items should be included in the criteria? These could include:
    1. Scale
    2. Innovation
    3. Research and development
    4. Legacy waste
    5. Targeting to particular wastes or wastes streams
    6. Repayment conditions.
  4. Do you have any other comments to make on the operation of the Waste Minimisation Fund?

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