3.6 Funding of the Best Practicable Environmental Option

Implementation of the BPEO will result in the cost of the management of MSW rising an estimated two to three times current costs. Significant additional resources for both capital investment and year on year running costs will be required to implement the BPEO. There are differing methods by which this funding can be secured and the infrastructure and services managed and funded. The Scottish Executive has established a Strategic Waste Fund that Local Authorities will be able to bid into in order to fund the BPEO. In addition partnership working with profit and non-profit-making organisations will make a contribution to delivering the necessary infrastructure and service provision. The implementation of the BPEO is reliant on sufficient additional levels of funding being secured.

Indicative costs were calculated as part of the development of the BPEO. These costs are subject to many variables and in order to avoid any misinterpretation have not been included in this plan. Detailed costs for each local authority will be set out in their Implementation Plan for the Strategic Waste Fund bid. Further information on national costs will be provided in the National Waste Plan 2003.

The focus of the process to establish the BPEO was to find the optimum methods of waste treatment that should be used to at least meet the three landfill reduction targets set by the Landfill Directive (ie permitted to landfill 75%, 50% and 35% of 1995 levels of biodegradable municipal waste sent to landfill, by 2010, 2013, and 2020, respectively). In the light of the draft AWPs published in spring 2002, the Executive has calculated that an interim overall national target of recycling and composting of 25% of waste collected by local authorities is achievable by 2006 by collective implementation of AWPs. The Executive has allocated £230 million for the financial years 2003/04, 2004/05, 2005/06 through the Strategic Waste Fund to assist with the additional costs of implementing the AWP’s. It is expected that the delivery of the plans will contribute to the 2006 target by early implementation of recycling and composting systems.