Hong Kong is set to exhaust its available landfills by 2020. The Government is now expected to introduce a municipal solid waste (MSW) charge, having experienced success with the 60% reduction in construction waste and 25% drop in the number of plastic shopping bags sent to the landfills after implementation of its respective charges.
Given the time required to pass a bill and the 12-18 months buffer time that will be provided, MSW charging is not expected to come into full effect until mid-2019. In the interim, prudent businesses will use the next two years to develop a waste management strategy to mitigate the impact of waste charges on profitability. Business can also choose to look at the waste problem as an opportunity for innovation. Globally, companies are rethinking the linear value chain model and opting to explore the circular economy.