Chapter 3

Study on Recyclables Collection Trends and

Best Practices in the Philippines

Lisa C. Antonio
Philippine Business for Environment, Philippines

March 2010

This chapter should be cited as

Antonio, L. C. (2010), ‘Study on Recyclables Collection Trends and Best Practices in
the Philippines’, in Kojima, M. (ed.), 3R Policies for Southeast and East Asia. ERIA
Research Project Report 2009-10, Jakarta: ERIA. pp.40-70.
 CHAPTER 3

Study on Recyclables Collection Trends and Best Practices in the

Philippines

Lisa C. Antonio1

1
For the ERIA Research Project on 3R Policies in Southeast and East Asia, October 2009.

40
1. Introduction
In the Philippines today, the annual solid waste generation rate is about 10
million tons (36,000 cum), which translates to approximately 0.3 - 0.7 kg daily of
garbage for each Filipino, which the World Bank estimates to grow by 40 percent by
the end of the decade (Philippine Environment Monitor 2004, World Bank). Much of
this is concentrated in the urban areas where up to 44 percent of this waste is
recyclable. Recycling thus offers some of the most pragmatic solutions to reduce the
volume of generated waste.
The Philippine Ecological Solid Waste Management Act of 2000, defines
recycling as “the treating of used or waste materials through a process of making them
sustainable for beneficial use and for other purposes, and includes any process by
which solid waste materials are transformed into new products in such a manner that
the original products may lose their identity…” 2 It is differentiated from Reuse in
which there is no alteration of the physical or chemical characteristics of the
recovered material.
Though not yet quite a pervasive practice, organized recycling in the
Philippines has picked up in recent years. According to the National Solid Waste
Management Commission (NSWMC), recycling rates have been increasing,
particularly in Metro Manila, from 6% in 1997; 13% in 2000; and 28% in 2006
(Andin, Z; NSWMC, 2007)3 . Among the major reasons for this improvement are the
following: the implementation of RA 9003, the grassroots SWM/ recycling
movement, and the market forces.

2. Drivers for Recycling

Many members of the older generation claim that recycling is not new to the
Filipino. This is true at the individual household level where food jars are reused, old
furniture are refurbished/transformed to other uses, and even leftover lunch is
“recycled” into new dinner fare. The advent of modern day lifestyles and a consumer

2
Ecological Solid Waste Management Act of 2000 – Implementing Rules and Regulations of
Republic Act 9003, Department of Environment and Natural Resources – Environmental
Management Bureau.
3
Atty. Zoilo Andin, Jr., Executive Director, NSWMC. Philippine National Strategy on 3R, paper
presented at The 3R Workshop on Effective Waste Management and Resource se in Southeast
Asia, February 15, 2007, Asian Development Bank, Manila.

41
/convenience– oriented society has however spawned a throw away mentality. But
recycling is making a comeback.
2.1. The Legal Basis

One of the reasons for recycling is that the government has finally laid down a
clear policy on solid waste management through the Republic Act 9003. This act
essentially upgraded the cleanliness and anti–littering ordinances into a more cohesive
national law to deal with the growing garbage crisis in the country. It defined a 3R
Policy, Framework and Strategy for a systematic, comprehensive and ecological solid
waste management program based on the waste management hierarchy which, in a
nutshell, can be described as: Waste Avoidance, Reduction, Reuse, Recycling,
Treatment and Disposal (Andin, Z; NSWMC, 2007).
The NSWMC, established under the Office of the President, is tasked to
oversee the implementation of SWM plans for which the lead agencies are the LGUs,
starting with the barangays (i.e., the smallest unit of government at the village level).
The LGUs are mandated to develop their own Local Government SWM plans, based
on the assessment of their local SWM situation and a characterization of their waste.
They are required to achieve an initial 25% waste diversion target, through a
combination of waste reduction, recycling and composting programs.

2.2. Grassroots SWM and Recycling Movements

While the law is not yet fully enforced and huge gaps exist with its
implementation, grassroots movements driven by local governments and
environmental organizations have helped provide impetus for community–level waste
segregation, collection and recycling activities. The Department of Environment and
Natural Resources (DENR) and the NSWMC lists fourteen government agencies and
NGOs offering training on integrated solid waste management (ISWM) in its 2004
ISWM Source Book for Local Government Units4. In addition to this, the outreach
activities of LGU–ESWM units, corporate foundations, and environmental groups
such as the Recycling Movement of the Philippines, the Solid Waste Management
Association of the Philippines (SWAPP), the Eco Waste Coalition and other
school/church–based programs which conduct advocacy activities for sustainable
4
Integrated Solid Waste Management Source Book for Local Government Units, Volume 2:
Organizations Offering Training on ISWM, DENR – Philippine Environmental Governance
Program, 2004.

42
waste management and community–level programs also provide livelihood
opportunities from the transformation of post–consumer waste into functional as well
as decorative items, like bags, belts, containers/ baskets, desk items, bricks/ hollow
blocks. There is no comprehensive listing available for smaller, local level
counterparts operating in the regions who conduct ISWM training on a continuing
basis.

2.3. Waste Trade and Market Forces

A 2008 Japan International Cooperation Agency (JICA) Study on Recycling

Industry Development in the Philippines5 analyzed the macro scale material flow of
scrap paper (newspaper, cardboard), scrap metals (iron, aluminum), glass bottles/
cullets, scrap plastic and electronic/electrical waste (i.e. cellphones, personal
computers, junk TVs and refrigerators) for the period 2000–2004, using data from the
Department of Trade and Industry (DTI) and the Bureau of Customs. The import/
export trend and recycling rate for these recyclables are summarized in Table 1.
The table above, shows high export volume for scrap iron/ steel, despite high
domestic consumption requirements. This could be due to the relatively favorable
buying price of scrap metals in the region, although actual export earnings are not
indicated. Export of waste plastic is also high, possibly because there was not enough
local capacity to recycle plastic during the period indicated. Hence the low
importation and recycling rate for waste plastic at only 8.4%. High importation of
waste paper and glass cullets help to meet the local recycling requirements which for
paper is at 41.2%; and for glass at 48.5%. Low import volume of aluminum scrap may
suggest that much of the aluminum recycling requirement scrap needed for local
recycling may come from finished or semi-finished products.

Table 1. Macro Scale Material Flow of Selected Recyclables

Import Import Export Export Domestic Current

Volume Cost Volume Earnings consumption rate recycling
(tons/yr) (million (tons/yr) (million rate
Pesos) Pesos) tons/ (kg/cap/
yr day)

5
Study on Recycling Industry Development in the Philippines, Board of Investments –
Department of Trade and Industry, and Japan International Cooperation Agency, 2008 .

43
Waste 388,553 2,446 7,542 51.6 1,559,510 0.049 41.2 %
paper
Scrap not 862,000 not 3,137,000 not not
iron/steel 22,000 given given given given
Scrap 2,000 not 19,000 not 97,000 not not
aluminum given given given given
Glass 2919 33,9 73 8.1 427,192 0.013 48.5%
cullet
Waste 14,900 194 44,476 676.7 691,911 0.022 8.4%
plastic
*note: figures for imported finished products from which some of the waste is derived
are not reflected in this table.

Table 2, on the other hand, summarizes the major countries to which the recyclable
wastes are exported to, or imported from.

Table 2. Recyclables Trade for the Philippines6

Countries from which the Countries to which the Philippines

Philippines Imports Recyclables Exports Recyclables

Waste paper Australia 22.7% Indonesia 46.2%

Japan 17% China 22.7%
Others: USA, HK, Germany, Singapore 10.2 %
UAE, New Zealand, Netherlands, Others: VN, India, Thailand,
Singapore Taiwan, South Korea
Scrap iron China 51.3% Taiwan 47%
Others: Taiwan, Palau, HK, Thailand 14.2%, Singapore 13.8%
Singapore, Korea, VN, Japan Others: China, India
Scrap Malaysia, 38.1%; Korea 21.7% Japan 45.7%; UAE 27.7%
aluminum Others: China, Japan, Taiwan, Others: Singapore, China, VN,
India, Thailand, Singapore, HK India, Thailand, Korea, Italy,
Australia
Glass bottles China, 88% Japan 99.8% and UK 0.2%
Others: Japan, Australia, Taiwan,
Malaysia, UK
Waste Germany 33.7%, HK 44.8%
plastic India 13.75, Japan 12.5% China 35.2 %
Others: S Korea, Netherlands, Others: Taiwan, Malaysia, S
S Africa, Singapore, Taiwan, Korea, Tanzania, Nigeria, S
USA, Malaysia Africa, VN

6
Study on Recycling Industry Development in the Philippines, Board of Investments –
Department of Trade and Industry, and Japan International Cooperation Agency, 2008

44
 In most cases, the biggest export market of the Philippines for recyclable
wastes appears to be to its neighbors in the region. Whereas the biggest source of its
imports for waste paper and waste plastic are Western countries.
The global trade for recyclable material dipped considerably during the
economic downturn in the past two years due to slowed down demand from
manufacturers. Although this resulted in depressed buying prices and stockpiles of
recyclables, the market has slowly begun to improve, and business has picked up for
those involved in various aspects of recyclables trading, such as collectors,
consolidators, bulk buyers, waste traders/ exporters.
Aside from its global market potential, more successful community–based
recycling programs have shown that there is really money from recycling waste even
by the small entrepreneur, and that a smaller yet promising market exists for finished
products made from post–consumer waste. These entrepreneurs can take advantage of
existing available technologies such as for laminates/ doy pack recycling, aluminum
can/ tetra pak recycling, tarpaulin recycling, mixed waste recycling (e.g. into hollow
blocks/ bricks) and others. Sales outlets for finished products tend to be limited (e.g.
regional trade fairs, eco– products fair) and that large–scale marketing and
commercialization, as well as quality control, continues to present challenges.

3. Overview of the Recycling Market and Recycling Industry

The 3Rs – Reduce, Reuse, Recycle – are strategies for dealing with generated
waste, to reduce the volume that is needlessly thrown away and which takes up space
in landfills. A sustainable SWM system however assumes that waste avoidance and
reduction is priority before the 3Rs. In the Philippines, more headway is being
achieved with the 3Rs than with waste avoidance since the latter requires an almost
monumental shift in paradigm of the Filipino society and of the industry as a whole.
While not ideal, this is welcome nonetheless, as recycling in itself brings many
benefits.

3.1. Types and volumes of household and commercial recyclables

In Metro Manila, more than 50% of waste collected is organic/ biodegradable,

and 44% is recyclable or factory–returnable. The latter is comprised mostly of scrap

45
paper (19%), plastics (17%), iron/metals (3%), aluminum (2%) glass (3%) and special
hazardous waste (1%). 7
The JICA 2008 Study on Recycling Industry Development in the Philippines
projected the volume of total recyclable materials based on its percentage in the waste
stream, as follows:
There are some variances with data from Mindanao in Southern Philippines,
where five major types of recyclables are traded: glass, plastic, paper, lead acid
batteries and metals, with the latter as the largest in terms of volume traded as well as
income generated (i.e. 94% out of 70 junk shops included in a REECS survey). 8
These, however, rarely come from households. Waste paper and plastics are the least
traded and thus more likely to end up in the landfills/ dumps, suggesting that
collection and recycling opportunities for these materials (such as PET plastics)
remain untapped.
The volume of e-waste in the country (whether as post–consumer waste or
imported as e–waste) is less discernable due to the abundance of cell phones, cell
phone batteries, personal computers/ computer parts brought in as secondhand items,
through surplus shops or through the black market (i.e. smuggled). Major sources are
from Japan, Korea, Taiwan, China, Hongkong, United States, and Australia either
legitimately or illegally imported.9

7
denr.gov.ph/nswmc/cbeswmp
8
N. C. Lasmarias and R. S. Junio. "The Market for Recyclable Solid Waste Materials in
Mindanao," Resources, Environment and Economics Center, 2006.
9
Study on Recycling Industry Development in the Philippines, Board of Investments –
Department of Trade and Industry, and Japan International Cooperation Agency, 2008.

46
Table 3. Recyclables Projection, 2006–2010

Materials % 2006 2008 2010

Paper 19 3,601,317 3,856,274 4,129,280

Plastic 17 3,222,231 3,450,350 3,694,619

Iron 3 568,629 608,885 651,992

Aluminum 2 379,086 405,924 434,661

* annual data given in tons
Glass 3 568,629 608,885 651,992

Total 44 8,339,891 8,930,318 9,562,544

3.2. Methods/ mechanics of collection: LGU Collection and Voluntary

Collection Schemes

Municipal solid waste from households is collected by garbage trucks either

owned or contracted by the LGU through a bidding process. Waste are either disposed
in the landfills or brought to waste facilities where they may be further sorted
manually (by organized groups of scavengers as in the case of the Payatas, Clark and
Montalban waste facilities) so that recyclables in the waste stream can be temporarily
stored for eventual sale to private recyclers or for further processing or re- use. The
most common practice is house-to-house collection and/or curbside collection of
wastes placed in plastic bags or bins provided by the residents. Ironically, RA 2003
has resulted in negative impact to the organized waste picker groups, due to reduced
volume of recyclables that reach the landfill and thus lowered their income too. .
Nevertheless, landfill management is mandated to fully implement the law, but social
preparation is needed to provide the waste pickers with alternative livelihoods when
the landfills/ dumpsites finally close.
For some commercial–industrial waste, the collection service is tailored to
individual requirements using large trucks/containers, or outsourced to accredited
waste haulers. According to the NSWMC, average waste collection efficiency is 75%
in urban areas and 40% in rural areas.

47
Segregated waste, including recyclables, is either collected separately (in some areas)
or by junk shop cooperatives/ eco–aides and brought to barangay/ city MRFs. The
MRF serves as a form of mini solid waste transfer or sorting station/ drop center,
ideally having composting and recycling facilities. To date, there are 2,312 MRFs
across the country, as mandated by RA 9003, with others still in the process of being
set up by the majority of barangays.

Figure 1. Current Flow of Recyclables Collection

MRFs

Recyclables/
Compostables

Source: Study on Recycling Industry Development in the Philippines, Board of Investments –

Department of Trade and Industry, and Japan International Cooperation Agency, 2008.

At present, many informal, community-based and private sector collection and

recycling projects also exist. The 2003 ADB Study surveyed existing community–
based SWM activities in Metro Manila at that time. Its principal activities included
the following:
 Recycling of non–biodegradable materials;
 Composting of bio–degradable materials; and
 Livelihood Projects;

48
Table 4. Surveyed CBSWM Initiatives, 2003 DENR-ADB SWM Project10

Voluntary waste collection schemes help to fill in the collection gap by

capitalizing on the economic incentives to both waste generators and waste buyers
and combining a business model with community livelihood projects. Many of these
schemes are launched by NGOs, often in partnership with LGUs, and intended not
only to recover recyclables but also to increase environmental awareness through
public participation and partnerships. The examples of these activities are as follows:

3.2.1. For Household Collection

o Households to Junk Shops occur through LGU collection schemes which use
mobile MRFs (in the city of Makati), or eco–aides (i.e., former street
scavengers or cart–pushers/ cariton boys who have been organized and
accredited by barangays or by the Metro Manila Federation of Multipurpose
Cooperatives under the Linis Ganda Foundation to collect recyclable
materials. The Federation includes 17 individual member multipurpose
cooperatives representing the 17 local governments of Metro Manila; at least
572 junk shops, 2,500 junk shop workers, 1200 eco- aides and 132 waste truck
drivers).11 Outside Metro Manila, household collection is still most commonly

10
Metro Manila Solid Waste Management Project, Department of Environment and Natural
Resources/ Asian Development Bank, September 2003.
11
The Garbage Book - Solid Waste Management in Metro Manila, Department of Environment
and Natural Resources and the Asian Development Bank, 2004

49
 done by individual cart–pushers who bring their collected recyclables to the
junk shops.

o Households to Junk Shops/ Recyclers occur through mall–based Waste

Markets/Recyclables Collection Fairs conducted regularly by two of the
largest mall operators in the country, the SM Supermalls and the Ayala Malls.
At these Waste Markets/ Recyclables Fairs, buying stations/ covered tents are
set up to receive scrap paper or cardboard/ plastics/aluminum or tin cans; used
ink/ toner cartridges, electronic waste/ “white” waste (such as junk
appliances); and used lead acid batteries. Those who bring their recyclables
are paid on the spot for the assessed value, based on prevailing market prices.

These Waste Markets are part of the Corporate Social Responsibility (CSR)
programs of the malls, who voluntarily provide portions of their commercial
parking areas for the venue. Malls do not derive any profit or commission
from the participating junk shops/ recyclers. The Ayala Malls hold their
Recyclables Fair every Friday on a rotating basis at five of their malls in the
Metro Manila area. The SM Supermalls hold their Waste Markets under their
“Trash to Cash” program every first Friday and Saturday of the month at their
26 malls nationwide. Since they began their Waste Markets in 2007/ 2008, the
Ayala Malls Group reported a collection of 46 tons equivalent to P267,000.00,
and the SM Supermalls has collected 417 tons equivalent to P2.6 million.

In addition, annual Recyclables Collection Fairs are held on Earth Day (April
22) and/or during Environment Month (June) in various parts of the country.
These are part of environmental advocacy efforts of business groups/
chambers of commerce/ companies (e.g. Davao City Chamber of Commerce,
MetroBank Group/ Manila Doctors’ College, SMART Communications,
Rockwell Land/ Lopez Group of Companies, ABS–CBN Broadcasting
Network) in partnership with the Philippine Business for the Environment
(PBE). To date, these Recyclables Collection Events (RCEs) have collected
2336 cu m. of recyclable materials worth P3,434,769.67 since they began in
2002, and channeled these to the local recycling industry. Extrapolated
environmental benefits for the RCE collections thus far, are as follows:

50
 Table 5. Summary of Environmental Benefits of RCEs

RCE Environmental Benefits 2002-2009

Number of trees saved: 3,154.20
Lead recovered (kgs) 329,134.78
Sulfuric acid treated (liters) 65,826.96
Base metals recovered (kgs) 88,165.82
Precious metals recovered (gms) 11,020.73
Toxic substances treated: 14,694.30
PET recovered (kgs) 6,502.76
Aluminum recovered (kgs) 2,835.02

Total Landfill space avoided (cu.m) 2,336.32

Total Equivalent (10 ton) dump trucks 234

Households to Manufacturing Companies –it mainly involves retrieval of

special waste like used lead acid batteries, old/ broken cellphones / electronic
devices, and used ink toners and cartridges.

The Philippine Recyclers Inc. (PRI), the only ISO 14001 certified used lead
acid battery recycling operation in the Philippines, linked up in 2000 with the
non-profit Bantay Kalikasan (Nature Watch) Foundation and the DENR for
the Bantay Baterya (Battery Watch) program. This activity allows people to
either turn in their used batteries for new ones at a discounted rate, or to
donate the trade–in value to the BK Foundation for its environment projects,
such as watershed protection and anti–smoke belching. The Program aims “to
sustain public awareness on the health and environmental hazards posed by
indiscriminate junk battery disposal, provide a long –term mechanism for
reducing the number of improperly disposed junk batteries, and ensure a
steady supply of raw materials for the production of new batteries. It targets to
recover 20% of the estimated 200,000 batteries consumed each month
nationwide, which goes underground to illegitimate smelters with limited lead
recycling capabilities and improper handling of battery acid and powder form
lead.12 As of 2008, a total of 400,000 kilos of used lead acid batteries and

12
2008 Accomplishment Report, ABS CBN Foundation. www.abs-cbnfoundation.com

51
 60,000 litres of sulfuric acid have been recovered through Bantay Baterya.
This has also avoided 586 m3 of landfill space.

Companies such as Globe Telecommunications, SMART Communications

and Nokia Philippines have also organized Used Cellphone Collection
Programs to enable the public to dispose their used units in cellphone
collection bins in the malls and in Nokia Centers. These units are then shipped
abroad for recycling. There is however competition with a thriving trade in
used cellphones by which one can trade in an old unit for a newer model at
over the counter cellphone repair shops that proliferate in commercial centers
throughout the country and refurbish/ dismantle the old units for resale as
secondhand mobile phones.

Ink Remanufacturers also abound in the cities nationwide, offering to buy

empty cartridges and toners for refill or resale, at stalls they set up in public
areas or during waste markets/ recyclable collection fairs.

3.2.2. For School–based Collection

o Schools to Junk Shops/ MRFs occur through one–shot RCEs similar to the one
mentioned above. This is initiated by student councils, faculty or parent
associations as part of their environment awareness campaigns; or through
LGU-assisted continuing schemes such as those by the Makati City, Marikina
City and Quezon City governments.
o In Makati City, all of its 29 public schools have established their
MRFs, and both public and private schools have partnered with the
San Miguel Corporation for aluminum can and PET plastic bottle
collection for a total of close to 2 million pieces from 2006–2008. The
city government also organized a “3B sa Pasko Program” (Bawasan,
Balik – Gamitin at Baguhin ang Anyo/ Reduce- Recycle and reuse)
working with schools and livelihood cooperatives to recycle waste into
holiday décor and gift items which are sold at Christmas bazaars. This

52
 has raised about P200,000 from 2006–2008 and diverted more than
25,000 kg of garbage from the landfill.13

o Marikina City’s Waste Management Office, in coordination with the

Department of Education, introduced the Eco-Savers program in June
2004. This requires students to bring recyclable garbage from their
respective households during an assigned Eco Day—the day when the
garbage is going to be weighed and credited to their issued eco
passbooks. Each of the 18 public elementary schools in the city is
assigned a once a week Eco Day.
Accredited junk shops weigh the recyclables, record these in the
passbooks and haul all the recyclables collected. The recyclables are
then valued according to the prevailing market price and reflected in
the individual passbooks using a point system (PhP1.00 = 1 point).
Points earned entitle the eco-saver to shop in the Eco-Savers Mobile
Store, which visits the school twice within the school year. This mobile
store carries educational materials such as dictionaries, books, school
supplies and educational toys. An eco-saver only needs to present the
passbook to purchase school supplies.14
Records show that individual savings or points earned, within a school
year period, ranged from PhP50.00 to PhP1,800.00, which helped
reduce household expenses on school supplies. The Eco-Savers rogram
has also decreased the cost incurred in the disposal of local solid waste.
The 50 truckload-trips a day to the dumpsite went down to an average
of 30 trips a day and has also contributed to traffic decongestion, less
air pollution, and energy conservation. Moreover, the program has
provided junk shops within the city with a regular supply of recyclable
materials. Through this program, a total of 238,000 kilograms of waste
with a monetary value of P1.3 million have been diverted from
dumpsites. In 2007, the Eco–Savers Program of Marikina was
recognized with a Galing Pook (Good Governance) Award, a joint

13
Villas, D., Department of Env Services, City Govt of Makati, Presentation at SWAPCONN
2008
14
www.galingpook.org/awardees/2007/2007_outstanding_marikina.htm

53
 initiative of the Local Government Academy–Department of the
Interior and Local Government (LGA-DILG), the Ford Foundation,
and other individual advocates of good governance from the academe,
civil society and the government.
o Schools with Manufacturing Companies – companies also partner with some
schools to take back their used packaging/ discarded products in keeping with
the concept of Extended Producer Responsibility (EPR), as follows:
o The Coca Cola Bottlers Philippines, Inc.: launched several school–
based schemes in partnership with the Department of Education
(DepEd) and the DENR for the collection of both aluminum cans and
PET bottles, using redemption schemes, school contests and trade–in
programs.

One such previous program dubbed as “Give a Can, Give Hope”

involved a tie up of the Coca Cola Bottlers Philippines, Inc. (CBPI)
(for the widespread collection of aluminum cans) with the Department
of Education and the WG&A shipping company which shipped these
cans from donors in the Visayas and Mindanao to Manila using its
Superferry vessels. The cans were then turned over to the Reynolds
Recycling Corporation, for conversion into aluminum tubings and
sheets used for manufacturing low cost wheelchairs by the non–profit
Tahanan Walang Hagdan / THC (House With No Steps) Foundation
for Persons with Disabilities (PWDs).

Another program was an incentives scheme in which schools racked up

points for every kilo of PET bottles collected, which they could swap
for school equipment (such as garden tools, school supplies, office
equipment such as copiers and computers) from a pre– prepared menu
of items. However, both Programs only ran for a limited period and
were discontinued after CCBPI turned over the collection process to
accredited consolidators.

o Tetra Pak Philippines tied up with the non–profit Linis Ganda

Foundation for the collection of used tetra pak cartons; and has also

54
 donated collection bins to about 100 partner schools for pre– arranged
pick up by consolidators for delivery to partner paper manufacturers
such as the Trans National Paper Corp which recycle these into
composite boards. These boards are either donated to Habitat for
Humanity Philippines to be used as doors/ furniture for housing units,
or given to THC whose resident craftsmen turn these into furniture,
home and office accessories and gift items. The schools which collect
the most volume of used tetra pak cartons are awarded cash prizes or
chipboard items. Tetra Pak also partners with Global Paper Corp to
recycle the used cartons into brown paper.15

3.2.3. For Commercial/ Business Collection

Companies to Junk Shops: The Ayala Foundation, which is the corporate

foundation arm of the Ayala Group of companies, initiated a Partnership
Project with Junkshops in Makati City where it owns and leases out 26
commercial and residential buildings. They partnered with the Metro Manila
Federation of Environment Multi-Purpose Cooperatives (MMFEMPC) which
designated authorized junk shop members to collect recyclable materials from
specific assigned cluster of buildings using 4-wheel vehicle such as jeep or
pick-up at specified hours. Use of carts and pedicabs was strictly prohibited.
Collectors are required to wear T- shirt uniforms provided for them, carry duly
signed authorization papers, and attend monthly progress update meetings.
Building managers kept a detailed record of collection days and volumes, and
payment for collected recyclable materials is done on a cash basis using a
standard minimum price list that was regularly updated. The Program
organized training and orientations for both the Building Managers and
MMFEMPC members, and resulted in the publication of a SWM Instructional
Manual for Building Administrators.16

o Companies to NGOs - as part of their CSR, many companies have found ways
to deal with wastes from their marketing activities like banners and tarpaulins,

15
www.tetrapak.com.
16
Licos, A. Building Partnerships with Junk Shops. Presentation at SWAPCONN 2008.

55
 while at the same time providing livelihood opportunities for communities and
NGOs who turn these into functional materials like shopping bags, folders and
envelopes. Examples of these tie ups are: Globe Telecommunications to
Bantay Kalikasan, SMART Communications and the Earth Day Network;
Unilever Philippines and the Smoky Mountain Foundation, Cebu Furniture
Industries with RIBA/ Recycling Initiative of Bais City (Negros Oriental);
Ayala Corp and Shangri – la Hotels with the Gifts and Graces Foundation. The
latter, for example, aims to “improve the quality of life of marginalized
members of society by providing product development and global market
access to livelihood communities under the Gifts and Graces brand.”

Companies to companies: Since 1996, the PBE has been managing the
Industry Waste Exchange Program (IWEP), which operates as an Information
Clearinghouse that matches waste generators and waste buyers, and promotes
resource recovery through orientation sessions, company in–house seminars,
Environmental exhibit/ trade fairs, case studies /publications, Waste Markets
and RCEs, and IWEP ads in its quarterly Business and Environment
Magazine. Manpower constraints make it difficult to track all possible waste
exchange referrals, or offer services beyond referrals and promotion.
Nevertheless, there have been several documented case studies of successful
waste exchanges also being implemented as a geographic – specific program
by the Davao City Chamber of Commerce and Industry in the Mindanao area,
and the Eco-Industrial Exchange Network (Eco – Index) of industrial estates
in the Laguna- Batangas area (north of Manila).

3.3. Recycling Technologies and Facilities

Upon reaching the recycling facility, the recyclables are transformed into
useful raw materials or finished products through a variety of locally available
technologies. There are large recycling facilities for paper, plastics, used lead acid
batteries, scrap metals, electronics waste and glass. Cement plants also collect used
tires for use as substitute fuel for their kilns (i.e. co–processing). Smaller, community
recycling that are less capital–intensive also occur for laminates (“doy” packs)
recycling and spent ink and toner cartridges. The Department of Science and
Technology (DOST) – Industrial Technology Development Institute (ITDI) has

56
helped to promote many of these technologies with help from the ADB. Other
residuals are processed into non – load bearing concrete materials (e.g. hollow blocks,
benches, perimeter walls, traffic barriers) – palingenesis, hydromex technologies. 17

New business opportunities have resulted in more environment service

providers for the treatment of special and hazardous materials such as fluorescent
lamps and bulbs and industrial waste like sludge and spent solvents. However, there is
still much room for expansion here, and treatment costs are not always within the
reach of smaller companies, especially those in the regions outside of Metro Manila /
Luzon where such facilities may be sparse or non–existent. Thus, the uptake for these
environment technologies needs to be hastened through information sharing, technical
and financial assistance, incentives and, most importantly, political will.

A Recyclers’ Directory at the NSWMC website lists 56 recyclers as follows:

Table 6. Recyclers Locations (based on NSWMC database)18

Type of Recyclables No. of Locations Locations

Recyclers19 (in Luzon / around (other than
MetroManila) MetroManila/ Luzon)
Plastics 24 Valenzuela (14) Cebu
(HDPE, LDPE, PP, Manila (2)
PS, PET, HIPS, Quezon City (2)
PVC, Others Caloocan
Laguna
Mandaluyong
Muntinlupa
Parañaque

Paper 14 Makati (2) Davao

(newsprint, office Pasig (2)
paper, other White Quezon City (2)
grades, corrugated Caloocan
cartons, paper Cavite
boxes) Laguna
Malabon
Marikina
Pampanga

17
www. denr.gov.ph; www.dost.gov.ph
18
www.denr.gov.ph/nswmc.
19
The PBE database lists 1 additional PET recycler in Pampanga, 2 additional electronics
recyclers in Bulacan and Caloocan; and one additional tin can recycler.

57
 Parañaque

Used Lead Acid 1 Bulacan

Batteries
Computers/ 1 Laguna
Electronics
Tin Cans 1 Mandaluyong
Metals 2 Cavite
Quezon City
Container Glass 6 Cavite (2) Cebu
Laguna
Makati
Manila
Flat Glass 1 Pasig
Tetra Pak * usually also by paper recyclers
Tires 6 Bulacan
Las Piñas
Manila
Marikina
Pasig
Quezon City
Totals 56 53 3
Note: Some locations (e.g. Makati) are those of headquarters rather than plant facilities.

The locations are visually depicted in the map below:

Figure 2. Location Map of Recyclers (from NSWMC database) - Philippines

Metro
Manila/
Luzon (53)
Cebu (2)

Davao (1)

The 2003 ADB Metro Manila SWM Study however states that there are about
one hundred recycling companies and organizations in Metro Manila alone, with

58
Valenzuela City in the Bulacan province (north of Manila) having the largest
concentration (as similarly reflected in the NSWMC database), mostly of plastics
recylers.20 This excludes junk shop operations which do more of waste segregation
and trade rather than on–site recycling, with little investments in equipment,
technology or trained personnel.
Some of these recyclers may have collection agents in the regions. However,
the costs of transportation and shipping of recyclables from the provinces to Metro
Manila where the recycling plants are located, can be a deterrent to sustained
recycling programs in these areas. Also, many of the local recycling industries, in
particular of paper, scrap metal, plastics are faced with stiff competition in the foreign
market, especially China, which imports these at higher buying prices, and devours
such materials to meet the demands of their growing economy.

4. Stakeholder Roles
From the reports mentioned above, we can summarize the various
stakeholders in the recycling sector as follows:

o Consumers/Institutional & Commercial Waste Generators – whether

households; institutions like schools, offices; commercial/ business
establishments including restaurants and malls where large numbers of people
tend to congregate;
o Collectors/ Consolidators - whose role is to collect the waste generated at
various collection points;
o LGUs - who are mandated by law to implement efficient SWM programs and
to promote the 3Rs to achieve the minimum required waste diversion rate; and
to enact and enforce the necessary local ordinances and policies to ensure
compliance by domestic and commercial establishments;
o Producers/ Manufacturers – with the potential to help reduce waste through
product/ packaging redesign; economic incentives, take back programs and
process changes;

20
Metro Manila Solid Waste Management Project, Department of Environment and Natural
Resources/ Asian Development Bank, September 2003.

59
o Buyers/ Traders – who take advantage of domestic and global market forces to
trade recyclables that can be used as raw material by major manufacturing
industries;
o Recyclers – who invest in the technologies, facilities and infrastructure to
make recycling a viable industry using a business model approach; and
o Environmental/ Recycling Organizations/ Associations - who mount advocacy
programs and information programs to increase general awareness on the
benefits of recycling and generate public support and participation; and who
initiate/ provide technical assistance for community–based livelihood
programs.

Using the SWM hierarchy as a guiding framework, the most preferred

behavior is for consumers and waste generators to avoid creating waste by reducing at
source (e.g. of packaging, leftovers, over spending on consumer goods), and then
subsequently segregating/ sorting waste into reusables/ recyclables / non –
recyclables, for which barangays establish MRFs where further manual sorting takes
place. LGUs have the direct responsibility for collection of waste bound for the
landfills, and for building treatment and disposal facilities for residuals.
Municipalities/ cities (or, in the case of Metro Manila, the Metro Manila Development
Authority). These roles are summarized in the figure below:

60
Figure 4 Stakeholder Roles and Responsibilities in the Solid Waste Management
Hierarchy (NSWMC)

economies of scale and in partnership with LGUs

Partnership enterprises as dictated by policy,

Avoid

Reduce

Reuse
First
preferred
Recycle options
Municipalities/ Cities

Recover

Treatment Last
preferred
options
Residuals Management

Direct Responsibility Influencing Responsibility

SWM Hierarchy

5. Continuing Issues and Lessons Learned

There are issues and concerns for the recycling industry as a whole and for
each specific type of recyclable materials.

5.1. The general concerns of the recycling industry include

o Lack of consistent enforcement of environmental laws, allowing unregistered
and unregulated competition from informal recyclers who not only unfairly
compete with legitimate investors and businessmen, but also pose public
health and safety risks in areas where they operate, particularly with respect to
special recyclable wastes like electronic / electrical waste;
o Absence of clear market data for the regions, recycling facilities tend to be
concentrated in Metro manila or Luzon urban areas, making it difficult to

61
 sustain recycling programs in the provinces due to the large transportation/
shipping costs;
o Vulnerability of prices to world market fluctuations brought about by global
economic situation; and competition between the export market and the local
recycling market sometimes leading to a decrease in locally available
recyclables as production input for the local recyclers, notably with paper,
scrap iron/ metals and PET plastics;
o Lack of clear industry standards for recyclables – e.g. though tetra pak are
74% food grade paper board (4% aluminum, and 22% others), most paper
recyclers remove them from the scrap paper pile, and they end up virtually
discarded thus adding to the SW problem and losing out on commercial
opportunities; and
o Lack of investments to upscale/ commercialize some of the recycling
technologies to bring down costs, such as for recycling of tetra pak cartons
into fiberwood.

5.2. Some concerns of selected recycling industry sectors are

5.2.1. Paper
o For many existing paper millers, there is need to update old or
inefficient equipment and machinery; and to adapt newer technology
(e.g. for the recycling of Tetra Pak into carton/ cardboard);
o Related to the above concern is also the higher costs of water and
electricity in relation to the efficiency of the equipment, as well as the
operations itself; and
o Domestic paper collection still needs to be improved, especially in the
regions, not only with respect to volume but also with the handling
process to ensure the quality of the used paper supply for the
production of new paper (and to minimize “contamination” with other
mixed waste).

5.2.2. Plastics
o The use of scrap plastic for plastic production is very low compared to
that of paper, glass and metals. Hence, waste plastics comprise a major
part of the waste stream throughout the country. In part, this is due to

62
 the difficulty of separating plastic waste from mixed waste, for which
more public education is needed;
o On the other hand, some types of plastic waste such as PET bottles, are
being exported in large quantities where they fetch higher buying
prices, thus affecting the local supply of the local plastics
manufacturers; and
o For processing of PVC scraps to produce PVC flakes, there are some
technology limitations (e.g. need to manually sort 28 types of scraps of
PVC before crushing/ shredding); and no suitable size of extruder).

5.2.3. Metals
o There is severe competition between local scrap metals buyers (e.g. for
iron, tin and aluminum) and the buyers for foreign markets due to the
large export demand and higher export prices for them;
o The materials is also highly vulnerable to extreme price fluctuations;
and
o Higher operating costs for local metals recycling result from the high
cost of electricity (for electric furnaces in steel making), and shipping/
transport.

5.2.4. Glass
o Scrap glass fetches comparatively lower prices than the other
recyclables due to its handling bulk (thus requiring large collection and
storage areas); wide range of specifications (e.g. color, thickness,
opacity); and high transport cost; and
o In the Philippines, there are also few glass recyclers and domestic users
of scrap glass. Existing ones tend to be concentrated in one area (i.e.,
Laguna).

5.2.5. Used Lead acid batteries

o Informal backyard ULAB recyclers abound, creating unfair and
unregulated competition to the legitimate business investor, giving the
ULAB industry a negative image, as well as posing public health and
safety risks. Also, despite ISO 14001 certification and strict

63
 importation guidelines and monitoring protocols by the DENR, some
local environmental NGOs continue to oppose the importation of used
lead acid batteries which can affect the optimal operating capacity of
the ULAB recycling facility. PRI’s tie–up with both the DENR and the
Bantay Kalikasan (BK) has helped lend a measure of credibility to
their ULAB retrieval program and influence positive public perception,
to some degree.

5.2.6. Electronic Waste

o The sector is poorly regulated and many backyard operations exist
which create problems for worker health, community safety and
environmental contamination. This also gives the industry a bad
reputation, to the detriment of the legitimate recyclers;
o Many mall – based electronics retail / repair shops are based in malls
and commercial shopping centers that have no e- waste segregation;
thus resulting in their inclusion with mixed waste. Very few (possibly
none) have generalized or bulk disposal systems (e.g. for cell phone
battery wastes or non – working units/ parts). In areas outside Metro
Manila, disposal is via municipal waste, open dumping or burial,
which makes retrieval difficult;
o While the e- waste stream is increasing in the country (e.g. junk
computers and cellphones/ cellphone batteries), collection is hampered
by the Filipino penchant to retain their old units for their perceived
“residual” value or to pass these on to other users when they upgrade
their own; and
o More public awareness is needed on the hazardous materials in these
equipment and the need for proper recycling and/or disposal.

6. Recommendations
Recycling in the Philippines is in a relatively infant stage, but has a large
potential for growth if the various stakeholders examine the lessons learned from the
industry’s experience or achievement so far.

64
For the collection process, in particular, this study suggests the following
recommendations:

6.1. Improving the collection volume

o Although the collection schemes today are better organized today than
in the past, LGUs should continue to support and strengthen the
existing informal networks of collectors/ junkshops/ waste pickers as a
secondary materials recovery system, for both environmental and
social reasons. The experiences of Payatas, Clark and Quezon City, as
well of private sector schemes like those of the Ayala Group
demonstrate that such successful schemes help to alleviate both the
garbage problem and the collection burden of LGUs without additional
costs to the taxpayer.
o The success of voluntary collection schemes, especially those jointly
organized by the LGUs, private sector and NGOs, demonstrate that
practical, convenient channels are needed to encourage more
participation from the public. Some of these schemes offer monetary
incentives (such as trade–in value, or points –systems). Others offer
non–tangible incentives (e.g. protecting the environment) such as
polystyrene/ cellphone collection which does not give monetary
incentives.
o A common denominator for successful collection appears to be with
the use of widespread promotions which includes the benefits of
recycling and feedback to the public of the value of their contributions;
accessibility (e.g. at malls, schools or public places) and reliability (i.e.
regular collection/ redemptioin schedules). Thus, collection channels
should be well– publicized.
o In addition, more such collection points / collection sites need to be set
up in places outside Metro Manila, although this, of course, can be
seriously limited by the location of the recycling facilities themselves,
due to the prohibitive costs of transporting the recyclable goods.

65
6.2. Improving the collection process

o It is equally important to provide proper guidance and training, to junk

shops and secondary level collectors on the proper handling of
recyclable materials to assure better quality of the supply to the
recycling industries, and avoid rejects. Thus, guidelines are needed
not only for recycling but also for collection. These can be developed
in consultation/ with the help of the different stakeholders.
o Assistance for start–up financing from the government or private
sector (e.g. for small trucks, warehouses/ collection stations, payroll)
would also help encourage small collection businesses.
o Collectors and consolidators appear capable of quickly networking
with waste buyers and recyclers, but government can still provide
further help in establishing market linkages, especially for new such
opportunities in the regions

Since the underlying assumption for improving collection is that the market for
recyclables will continue to grow, the current study also offers some
recommendations for improving recycling practices as a whole.

o Need for more reliable and comprehensive information on the

recyclables market, especially to attract more private sector investment
to build recycling facilities or to commercialize recycling technologies;
o Importance of meeting environmental standards and of highlighting
good industry practices - Recycling industries are generally perceived
to be “dirty” and “unsanitary” in part because some did start out as
such and many informal activities continue to operate. But new
technologies and appropriate skills training can elevate recycling into a
respectable industry, and the economic and environmental benefits
they offer should be highlighted by the industry. Having local industry
standards as well can improve the export chances of local recyclable
materials;
o Importance of improving enforcement and regulation, to level the
playing field and encourage legitimate investments in environmentally

66
 safe, proper recycling operations; as well as to protect existing
legitimate and environmentally compliant investors;
o Promoting community – level adoption and technology transfer of
recycling technologies - examples of successful community – level
collection and recycling efforts cited in this paper had a good start with
support from foreign assisted donor projects which helped to establish
the proper community–level structure, initial funding, technical
assistance/ technology transfer and documentation of the project to
serve as replicable models in other parts of the country. The
availability of relatively newly developed recycling technologies
which are not capital–intensive (such as doy pack/ laminates / mixed
waste recycling into chipboards/ hollow blocks) created demand for
waste materials that would otherwise merely have been discarded;
o Policy incentives and Economic incentives to recycling industries –
Experience from other countries suggest that having national recycling
targets can significantly boost the growth of recycling efforts and
investments. In addition, some of the existing recycling facilities
benefited from pioneer status accorded them by the Board of
Investments (BOI) of the Department of Trade and Industry (DTI) to
allow them to bring in equipment with lower/ no tax; and enjoy a tax
holiday for initial years of operation to be able to establish a foothold
and recover some of their initial capital investment;
o Partnership with other stakeholders – notably government (e.g.
DOST/ DENR/ LGUs) and reputable NGOs (e.g. PBE/ BK) to help
add credibility to company recycling efforts/ environmental programs,
with the added benefit of having an advocacy/ education objective and,
where possible, to find ways to integrate the informal sector so as to
avoid social displacement and livelihood loss;
o Organized effort by the recycling industry- Local recycling industries
can band together and form a professional association that can dialogue
with government and other stakeholders, educate the public on the
benefits of industry recycling and pursue programs to promote support
for the recycling industry as a whole; and

67
o Stimulating demand for recycled products and promoting benefits of
post–consumer recycled products – provides a larger market for
recycling businesses and encourages the growth of more eco–
entrepreneurs, noting that in the Philippines, as in many other
countries, more than 90% of industry is small and medium in size. The
success of the most recent eco–products fair held in Manila in early
2009, with plans already afoot for another one in 2010, suggest that
these, combined with green procurement programs, are effective
vehicles for generating interest and support for eco products, including
recycled products. The government can further stimulate demand by
enacting policy in favor of green public procurement. An example is
the Executive Order 301, issued by the Office of the President in
March 2004, requiring all departments, bureaus, offices and agencies
of the executive branch to establish their Green Procurement Programs.
Although implementation has been slow, one outcome of this is the
inclusion of environmentally preferred criteria in the procurement
guidelines of the Department of Budget and Manage

68
References
ABS CBN Foundation. 2008 Accomplishment Report,. www.abs-cbnfoundation.com.
Andin, Jr. Zoilo., Executive Director, NSWMC. Philippine National Strategy on
3R, paper presented at The 3R Workshop on Effective Waste Management and
Resource se in Southeast Asia, February 15, 2007, Asian Development Bank,
Manila____________________________.
Antonio, Lisa A. Study on 3R Policy and Waste Exchange in the Philippines, East
Asia Research Project for 3R Policies in Southeast and East Asia, 2009.
Board of Investments- Department of Trade and Industry (BOI-DTI) and Japan
International Cooperation Agency (JICA). Study on Recycling Industry Development
in the Philippines, 2008.
Department of Environment and Natural Resources (DENR).
<www.denr.gov.ph/nswmc>.
DENR and ADB. The Garbage Book - Solid Waste Management in Metro Manila,
2004.
DENR and the Asian Development Bank, Metro Manila Solid Waste Management
Project, September 2003.
DENR-EMB. Ecological Solid Waste Management Act of 2000 – Implementing
Rules and Regulations of Republic Act 9003.
DENR–Philippine Environmental Governance Program, Integrated Solid Waste
Management Source Book for Local Government Units, Volume 2: Organizations
Offering Training on ISWM, 2004.
DENR/ NSWMC and the United Nations Development Programme. Solid Waste
Management Made Easy: A Do-It-Yourself Guide to Community Based Ecological
Solid Waste Management Programme, 2006
Department of Science and Technology (DOST). <www.dost.gov.ph>.
GalingPook.<www.galingpook.org/awardees/2007/2007_outstanding_marikina.htm>.
Lasmarias, Noela C. and Junio, R.S. "The Market for Recyclable Solid Waste
Materials in Mindanao," Resources, Environment and Economics Center, 2006.
Licos, Adel. Building Partnerships with Junk Shops. Presentation at SWAPCONN
2008.
National Solid Waste Management Commission. (NSWMC).
www.denr.gov.ph/nswmc.____________________________________________.
Philippine National Report to the United Nations Commission on Sustainable
Development, October 2009
Rebullida, Ma. Lourdes G. Resource Recovery in Solid Waste Management:
Strategies, Initiatives, Policy Issues. University of the Philippines – Center for
Integrative and Development Studies, 2000.
Tetrapak. <www.tetrapak.com>.
Villas, Danilo. Department of Env Services, City Govt of Makati, Presentation at
SWAPCONN 2008.

69
World Bank. Philippines Environment Monitor 2004

70