Local governments struggling to sort out waste reform after nationwide launch

As Estonia's waste reform kicks off, local governments face a steep learning curve, juggling new recycling and procurement rules, among other growing pains.
The nationwide reform seeks to increase and improve municipal waste recycling. Currently, about 40 percent of waste is recycled; the target is 65 percent within a decade.
Another goal is to break up the near-monopoly in the waste management market.
"Right now, the market is dominated by two companies, but Estonia could support a dozen," said Ivo Jaanisoo, deputy secretary general at the Ministry of Climate.
Under the new rules, local governments must organize separate provider procurements for various waste types, rather than bundling services in broad contracts as before.
"Previously, only two companies nationwide could offer that, which pushed the market toward a monopoly," Jaanisoo explained. "Going forward, local governments will procure specific providers for each type of waste."
The ministry has issued guidelines to help local governments standardize procedures and leverage economies of scale.
"We encourage cooperation between local governments," Jaanisoo said, pointing to the potential for more efficient and cost-effective waste management.
The transition period runs through the end of 2030 to avoid forcing local governments to renegotiate existing contracts. But some contracts are ending sooner, requiring new procurements and likely prompting confusion, said Kerli Kõue, environmental specialist for the City of Rakvere.
Rakvere's current waste management contract ends next February, and according to Kõue, the city needs to start drawing up new procurements now. She hopes the Climate Ministry is ready to lend a hand, at least at first.

"We can't manage with a single procurement like before; now we have to contract waste management separately for each type," she explained, adding that this will increase the city's workload.
In Rakvere, glass collection will likely remain part of the city's public infrastructure.
"Single-family homes often don't have the space for so many containers, and some apartment buildings can't accommodate the infrastructure for so many containers either," Kõue said.
Rae Municipality and Viljandi face similar challenges.
In Harju County, Rae Municipality's current waste management contract ends in spring 2027, with a new procurement planned for year-end. Further south, Viljandi's contract ends this March already, and the city may need five to six separate procurements to cover all waste types and treatment facilities.
"The City of Viljandi doesn't have a plan fully in place yet for how this will all work, but it's clear costs and administrative loads will go up significantly," said Viljandi city communications chief Seila Peek.
Official: Waste collection should get cheaper
Local governments will also set service pricing. While environmental specialists have not yet provided estimates for what this will ultimately cost residents, the Ministry of Climate says residents should pay less for separately collected waste.
According to the deputy secretary general, recycling collection should end up costing people about 50 cents per pickup, biowaste no more than €1 a month, and mixed waste about €2 if people sort their waste correctly.
"[People] should be left with relatively little mixed waste if they're sorting their waste," Jaanisoo added.
The ministry official urged local governments to implement the system early to provide residents with reasonably priced services.
"It's up to local governments to ensure their solutions are affordable," he said.
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Editor: Mirjam Mäekivi, Aili Vahtla








