Report on China’s Waste-to-Energy Sector and Sustainable Development Goal Alignment

Executive Summary

An analysis of China’s waste-to-energy (WTE) incineration sector reveals a significant and growing overcapacity issue. The rapid expansion of incineration infrastructure, intended to support sustainable urban development, has substantially outpaced the growth of municipal solid waste (MSW) generation. This report examines the disparity between capacity and supply, contextualizing the findings within the framework of the United Nations Sustainable Development Goals (SDGs).

Analysis of Capacity Versus Waste Generation

The WTE sector in China is currently characterized by severe underutilization, a situation mirroring oversupply issues in other national industries. This imbalance poses challenges to achieving sustainable industrial and urban development objectives.

• Waste Generation Growth: The volume of collected MSW increased by approximately 11% between 2019 and 2023.
• Capacity Expansion: Over the same period, national WTE incineration capacity more than doubled.
• Resulting Idle Capacity: This discrepancy has resulted in an estimated 40% of the nation’s WTE incineration capacity sitting idle, with plants operating at an average of 60% utilization.

1. Municipal Solid Waste Data: Collected MSW rose from 235 million tonnes in 2019 to over 262 million tonnes in 2023.
2. Incineration Capacity Data: Daily processing capacity surged from 457,639 tonnes in 2019 to approximately 1.11 million tonnes by late 2023, distributed across 1,010 enterprises.
3. Causal Factors: The slowdown in waste generation growth is attributed to factors including an economic downturn and decelerating urbanization, impacting consumption and production patterns.

Implications for Sustainable Development Goals (SDGs)

The overcapacity in China’s WTE sector has direct implications for its progress toward several key SDGs.

SDG 11: Sustainable Cities and Communities

The primary goal of WTE infrastructure is to support Target 11.6, which aims to reduce the adverse environmental impact of cities through improved waste management. However, the current oversupply indicates a misalignment in infrastructure planning, creating economically unsustainable assets and questioning the efficiency of capital deployed for urban sustainability.

SDG 7: Affordable and Clean Energy

WTE facilities are a source of renewable energy. The significant underutilization of these plants directly curtails their potential contribution to national clean energy targets, hindering progress towards Target 7.2, which seeks to increase the share of renewable energy in the global energy mix.

SDG 12: Responsible Consumption and Production

This situation presents a paradox for SDG 12. While a slowdown in waste generation could be viewed as progress towards Target 12.5 (substantially reduce waste generation), the massive investment in disposal infrastructure highlights a disconnect from a holistic circular economy model that prioritizes waste reduction and recycling over incineration.

SDG 9: Industry, Innovation, and Infrastructure

The sector’s condition is a case study in the challenges of achieving Target 9.4—upgrading infrastructure and retrofitting industries to make them sustainable. The rapid build-out without corresponding demand underscores a need for more integrated and data-driven planning to ensure industrial infrastructure is both resilient and sustainable.

SDGs Addressed in the Article

The issues discussed in the article, primarily focusing on China’s waste-to-energy incineration industry, its overcapacity, and municipal waste management, are connected to several Sustainable Development Goals (SDGs).

• SDG 7: Affordable and Clean Energy

  The article directly discusses the “waste-to-energy incineration” sector. This process is a method of generating energy from waste, which is considered a source of renewable energy. The discussion of the industry’s capacity and utilization is relevant to increasing the share of clean energy in the national energy mix.

• SDG 9: Industry, Innovation, and Infrastructure

  The article highlights a major issue of “severe oversupply” and an “optimistically planned industry” leading to underutilized infrastructure. This relates to the goal of building resilient infrastructure and promoting sustainable industrialization. The fact that “40 per cent of waste-to-energy incineration capacity sitting idle” points to challenges in sustainable industrial planning and resource efficiency.

• SDG 11: Sustainable Cities and Communities

  The core subject is the management of “municipal solid waste” generated in urban areas. The article details the amount of waste collected and the capacity built to process it, which is central to making cities and human settlements sustainable. The problem is framed within the context of urban waste management infrastructure.

• SDG 12: Responsible Consumption and Production

  This goal aims to ensure sustainable consumption and production patterns, which includes substantially reducing waste generation. The article provides data on the amount of “municipal solid waste generated in China,” which is a key aspect of this SDG. While the focus is on end-of-pipe treatment (incineration), the data on waste generation is fundamental to tracking progress on waste reduction.

Specific Targets Identified

Based on the article’s content, several specific SDG targets can be identified.

1. Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

   This target is directly addressed. The article’s entire focus is on the management of “municipal solid waste” through “waste-to-energy incineration.” It provides specific figures on the amount of waste collected (“262 million tonnes”) and the national incineration capacity (“1.11 million tonnes a day”), which are key components of municipal waste management systems.

2. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

   The article discusses the “waste-to-energy incineration” industry. This technology contributes to the renewable energy portfolio. The mention of a massive increase in capacity, which has “more than doubled” since 2019, indicates a significant investment aimed at increasing this form of energy, directly aligning with this target.

3. Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.

   The article provides baseline data relevant to this target by stating that “China collected and transported over 262 million tonnes of municipal solid waste” last year, an increase from “235 million tonnes in 2019.” This data on waste generation is crucial for measuring any progress toward reduction.

4. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and processes.

   The article’s central theme of overcapacity and inefficiency in the waste-to-energy sector speaks to this target. The finding that plants are “running at an average capacity of 60 per cent” indicates a lack of resource-use efficiency in this specific industrial infrastructure, highlighting a challenge in achieving sustainable industrialization.

Indicators Mentioned or Implied

The article contains data and information that can be used as indicators to measure progress towards the identified targets.

1. Indicator for Target 11.6 (Implied: 11.6.1 – Proportion of municipal solid waste collected and managed in controlled facilities out of total municipal waste generated, by cities)

   The article provides key data points for this indicator. It mentions the total amount of “municipal solid waste collected and transported” (262 million tonnes) and the total daily processing capacity of controlled facilities (incineration plants) at “1.11 million tonnes a day.” These figures are used to assess the proportion of waste being managed in such facilities.

2. Indicator for Target 12.5 (Implied: 12.5.1 – National recycling rate, tons of material recycled)

   The article provides the national figure for “municipal solid waste generated,” which increased from “235 million tonnes in 2019” to “262 million tonnes” last year. This data on total waste generation is the foundational metric needed to calculate reduction rates and progress towards this target.

3. Indicator for Target 9.4 (Implied: Resource-use efficiency of industrial infrastructure)

   While not a formal UN indicator, the article provides a direct and quantifiable measure of industrial efficiency. The statement that “waste incineration plants are seriously underutilised and estimated to be running at an average capacity of 60 per cent” serves as a clear indicator of the resource-use efficiency of this specific infrastructure, directly related to the goal of Target 9.4.

4. Indicator for Target 7.2 (Implied: 7.2.1 – Renewable energy share in the total final energy consumption)

   The article provides data on the “total capacity of around 1.11 million tonnes a day” for waste-to-energy incineration. This capacity figure is a proxy indicator for the potential contribution of this renewable energy source to the national energy mix.

Summary of Findings

Source: scmp.com