Market-Based Programming (MBP) refers to a range of programme modalities to understand and support local market systems. Traditional waste management approaches, often reliant on linear models of disposal and limited resource recovery, frequently struggle to keep pace with the increasing volumes and complexity of waste generated. This challenge is exacerbated in crisis settings where a lack of government subsidies reduces the economic viability of waste recovery. This results in a cascade of negative consequences, including environmental degradation, public health risks and the squandering of potential economic opportunities. In this context, MBP is a promising strategy to address these multifaceted challenges. By harnessing the power of market actors and economic incentives, MBP can catalyse a shift towards more sustainable waste management practices, fostering a circular economy where waste is viewed not as a burden but as a valuable resource.

MBP in SWM recognises the inherent value embedded within waste materials. It seeks to unlock this value by creating economic opportunities in waste recovery, recycling and reuse. By incentivising the collection, sorting and processing of waste, MBP diverts valuable materials from landfills and dumpsites, transforming them into commodities that can be reintroduced into the production cycle. This approach reduces the environmental impact of waste and also stimulates economic development and creates livelihood opportunities, particularly in marginalised communities. The integration of MBP into SWM programmes goes beyond simply establishing new markets; it also seeks to optimise and strengthen existing local market structures to enhance the effectiveness and sustainability of interventions.

Key MBP Principles

The successful implementation of MBP in humanitarian and development contexts requires a multifaceted approach that engages various stakeholders and adheres to key principles:

Value Creation from Waste: the cornerstone of MBP lies in identifying and unlocking the economic potential of waste materials. This involves establishing mechanisms to facilitate the collection, sorting and processing of recyclable and reusable materials, transforming them into valuable commodities that can be traded in local, regional or even international markets. In humanitarian contexts, this may involve identifying immediate needs for waste-derived products (e.g. using rubble for temporary shelter construction) or establishing cash-for-work programmes where people are paid for collecting and sorting specific waste materials. 

Private Sector Engagement: the private sector plays a pivotal role in MBP, bringing expertise, resources and market access to the table. Collaboration with private companies can lead to the development and implementation of innovative and sustainable waste management solutions, stimulating economic growth and creating job opportunities. This engagement can range from partnerships with established recycling companies to supporting the growth of small-scale waste collection and processing enterprises. In humanitarian settings, this could involve partnering with local businesses to provide waste management services in camps or supporting the creation of micro-enterprises focused on waste recovery and recycling.

Community Empowerment: MBP recognises that sustainable waste management requires the active participation and ownership of communities X.2. By providing training, support, and market linkages, MBP empowers communities to take an active role in managing their waste, generating income and improving their livelihoods. This can involve establishing community-based waste management systems, promoting waste segregation at the source P.2 and facilitating access to markets for recyclable materials. In humanitarian contexts, community empowerment may entail working with displaced populations to establish waste management committees, providing training on safe waste handling and disposal practices or supporting the development of community-led waste recycling initiatives. 

Environmental Sustainability: MBP in SWM prioritises environmentally sound waste management practices. It promotes recycling, organic waste treatment and other sustainable solutions that minimise pollution, reduce greenhouse gas emissions and contribute to climate change mitigation and ecosystem protection X.8. By incentivising the recovery and reuse of materials, MBP reduces the need for raw material extraction and manufacturing, thereby conserving natural resources and reducing the overall environmental footprint of waste.  This extends to the incorporation of sustainability criteria into the procurement of humanitarian Non-Food Items, ensuring they can be managed safely at their end-of-life. Examples include prioritising repairability, low toxicity, recyclability and local production P.1. In humanitarian settings, environmental sustainability may also involve promoting the use of biodegradable waste for composting T.1, implementing waste-to-energy projects (U.6, U.7) to reduce reliance on fossil fuels or establishing systems for the safe disposal of hazardous waste W.2. 

Integration with Existing Markets: a successful MBP approach recognises and integrates with existing market structures and dynamics as well as government policies. By understanding the local context and optimising existing value chains, MBP interventions can enhance efficiency, reduce costs, and ensure long-term sustainability. This may involve collaborating with informal waste collectors, strengthening existing recycling networks or adapting MBP initiatives to fit within the prevailing market conditions. Examples in humanitarian settings could be integrating waste management programmes with existing market systems for food distribution, shelter materials or other essential goods and services. 

MBP Interventions

MBP interventions in SWM can take various forms, each tailored to the specific context and needs of the community. Some examples include:

Cash for Work programmes in SWM: in humanitarian settings, Cash for Work programmes can be a valuable tool for engaging communities in waste management activities. These programmes provide temporary employment opportunities for individuals to participate in waste collection, sorting, and recycling activities in exchange for cash. This helps to improve the immediate environment and also provides much-needed income to vulnerable households. For instance, in a post-disaster setting, a Cash for Work programme could pay residents to clear debris, segregate waste and construct temporary waste disposal facilities.

Cash and Voucher Assistance (CVA) in SWM: CVA programmes can also support SWM activities. They can be given to households in exchange for proper waste disposal or participation in community-based waste management initiatives. For example, households could receive vouchers for bringing their waste to designated collection points or for participating in waste segregation and composting programmes. This approach can incentivise responsible waste management behaviour and promote community ownership of waste management systems.

Grants or temporary support to local waste management businesses: in humanitarian contexts, local waste management businesses may be disrupted or overwhelmed by the increased waste generated by displaced populations or disaster events. Providing grants or temporary support to these businesses can help them maintain or expand their operations, ensuring the continuity of essential waste management services. This support could include financial assistance, technical training or access to equipment and resources. For example, a local waste collection company could receive a grant to purchase additional trucks or to establish a temporary waste transfer station in a displacement camp.

Capacity-strengthening initiatives for market actors in the waste management sector in humanitarian settings: capacity-strengthening initiatives strengthen the skills and knowledge of individuals and organisations involved in waste management in humanitarian settings. Initiatives include providing training on safe waste handling and disposal practices, waste segregation and composting techniques or business management skills for waste entrepreneurs. By investing in capacity strengthening, humanitarian organisations can help to develop a skilled workforce capable of managing waste effectively and sustainably. For example, training could be provided to community members on how to construct and operate low-cost composting facilities or on how to establish small-scale waste recycling businesses.

Micro-enterprises for waste collection and recycling: humanitarian MBP could support the establishment of small businesses that collect and process recyclable materials, create income opportunities for marginalised groups and improve waste management services in underserved areas. Support can involve training, micro-finance and market linkages to enable these enterprises to thrive. In humanitarian contexts, it may involve providing grants or micro-loans for the creation of waste management businesses in displacement camps or conflict-affected communities. For instance, in a refugee camp, an MBP programme might provide seed funding and business training to a group of refugees to establish a small-scale recycling enterprise, collecting plastic waste and transforming it into reusable bags T.7 or building materials T.8.

Pay-As-You-Throw (PAYT) Systems: PAYT systems charge households and businesses based on the amount of waste they generate, thus incentivising waste reduction and recycling at the source. This approach encourages individuals and businesses to adopt more sustainable waste management practices by directly linking their waste disposal costs to their waste generation behaviour. Although PAYT systems may be less applicable in acute humanitarian emergencies, they can be valuable tools for promoting sustainable waste management in protracted crises or during the recovery phase. For example, in a temporary settlement for internally displaced people, a PAYT system could be introduced where residents receive vouchers for proper waste disposal, encouraging waste reduction and community cleanliness.

Waste-to-Energy Projects: waste-to-energy facilities convert organic waste into biogas T.3 or electricity, providing clean energy sources and reducing reliance on fossil fuels T.5, thereby contributing to climate change mitigation efforts. While these projects can potentially offset some operational costs through the sale of energy, they typically require significant investment and may not generate revenue. In humanitarian settings, waste-to-energy projects can provide a sustainable source of energy for camps or communities, reducing the need for firewood or other fuel sources that may contribute to environmental degradation. For instance, in a post-disaster setting, a mobile waste-to-energy unit could be deployed to process organic waste from temporary shelters, generating biogas for cooking and heating.

Extended Producer Responsibility (EPR) Schemes: producers are held accountable for the end-of-life management of their products, encouraging them to design products that are easier to recycle and reuse, promoting a circular economy and reducing waste generation. EPR schemes can create financial incentives for producers to minimise waste and invest in recycling infrastructure. While EPR schemes may be challenging to implement in humanitarian emergencies, they can be integrated into longer-term recovery and development efforts. For example, in a post-conflict area, an EPR programme could be established for construction materials, encouraging the use of recycled and reusable materials in rebuilding efforts.

Market Assessments: it is crucial to conduct comprehensive market assessments before designing and implementing MBP interventions (see also P.3). These assessments provide a nuanced understanding of the local market dynamics, including supply and demand patterns, existing market actors and their capacities, infrastructure and logistical considerations and the regulatory environment. By identifying key opportunities and constraints, market assessments inform the design of effective and sustainable MBP initiatives that build on existing market strengths and address potential challenges. In humanitarian contexts, market assessments should consider the specific needs and vulnerabilities of crisis-affected populations, as well as the impact of the crisis on local market systems. For instance, a market assessment in a drought-affected area might reveal a need for composting initiatives to improve soil fertility and support local livelihoods.

Challenges

While MBP offers a promising pathway to sustainable waste management, it is important to acknowledge and address potential challenges. Limited market access, lack of infrastructure and regulatory barriers can pose obstacles to the success of MBP initiatives. Integrating the informal sector, which often plays a significant role in waste management in developing countries, is crucial to ensure that MBP does not negatively impact their livelihoods. Robust monitoring, evaluation, and learning (MEAL) systems X.3 are also vital to track progress, measure impact and ensure accountability in MBP projects. Key indicators, such as the quantity of waste diverted from landfills, income generated from recycling and community participation, can help assess the effectiveness and sustainability of MBP interventions. In humanitarian settings, additional challenges may include insecurity, displacement, and the disruption of existing market systems.