About the Emissions Trading Scheme:
Why costs have increased
The New Zealand Emissions Trading Scheme (NZ ETS)
is the Government’s main tool for reducing greenhouse gas
emissions. Its objective is to support and encourage global
efforts to reduce greenhouse gas emissions by:
• Assisting New Zealand to meet its international
• Reducing New Zealand’s net emissions below business
as usual levels.
There have been significant increases in the price of
emissions units which Waste Management is required to
purchase. As with the waste levy, waste companies pass
on the cost of the ETS to customers to encourage end
consumers – people and businesses – to reduce the
amount of waste generated, and therefore reduce
greenhouse gas emissions.
For more information about the ETS, visit http://www.mfe.govt.nz
About recycling: Ongoing international volatility
Ongoing volatility in the global market for recyclable
materials has continued since China implemented National
Sword almost a year ago. Since then, other countries have
put restrictions on the import of certain materials, including
Vietnam, Malaysia, Indonesia and Thailand.
As a result, supply has continued to exceed demand,
driving down the price for many of these materials.
This has meant that the cost for collecting and processing
recyclable materials is no longer offset by the price being
paid for those materials in the national and international
As such, customers seeking to recycle are likely to continue
to experience increased prices for recycling services.
Market volatility: Finding markets for recyclable materials
Overall, prices have continued to decrease, reflecting the
smaller number of international and national customers
seeking to purchase recyclable materials.
Lower grade mixed plastics (plastics 1-7) remain the most
difficult recyclable materials to sell. Waste Management
has been able to find customers who want these products
Waste Management continues to have customers for all
other recyclable materials, although generally at lower
As one of the largest collectors of recyclables in New
Zealand, Waste Management is able to find both local and
international customers for materials, and we are constantly
sourcing new customers.
Ongoing investment: Recycling machinery
Waste Management is investing in new machinery for
our recycling business and in new facilities to manage
processing of problem waste streams here in New Zealand.
A new baler at our Tauranga Materials Recovery Facility was
installed recently, and is now operational. This has improved
our ability to process clear PET bottles, to provide to Flight
Plastics in Wellington. Flight Plastics will use this material
to make plastic packaging for the New Zealand market.
In addition, with support from the Ministry for the
Environment’s Waste Minimisation Fund, this year we also
invested in innovative new tyre processing equipment from
the United States and opened a new Tyre Recycling Facility
in Wiri, Auckland. This enables us to shred 30,000 tonnes of
waste tyres per annum, or three million car tyres.