Results-Based Financing for Municipal Solid Waste

Municipal solid waste management (MSW) is a crucial service provided by cities around the world, but is often inefficient and underperforming in developing countries. Low-income countries face the most acute challenges with solid waste management, with cities collecting less than half the waste stream and less than half of that amount processed to minimum standards.

Improving MSW in cities offers a high economic rate of return and significant environmental and public health benefits.  At the global level, improving MSW also contributes to climate change mitigation through the reduction of methane emissions.

Until recently, RBF principles and designs had not been widely applied in the solid waste sector, apart from the use of some performance-based contracting with private providers of solid waste services and carbon finance for methane mitigation.  By sponsoring this report, GPOBA expands lessons and analysis of RBF in the solid waste management sector.  The report presents case studies of eight municipalities that adopted RBF principles to fit local contexts and meet individual challenges.