REVERSE LOGISTICS BY WASTE COLLECTOR COOPERATIVES
#136 - COLETA E DESTINAÇÃO ADEQUADA DE RESÍDUOS SÓLIDOS POR COOPERATIVAS DE CATADORES NO BRASIL
Early in 2013, in collaboration with the National Association of Catadores (waste pickers), BVRio developed a system of Reverse Logistics Credits to assist companies to meet their obligations under the law while rewarding Catadores for the services of reverse logistics and recycling that they provide to companies, the government and society as a whole.
Reverse Logistics Credits are certificates that confirm that reverse logistics services were provided to ensure that a certain amount of waste was responsibly disposed of. These credits are issued and sold by cooperatives of Catadores and purchased by producers and/or importers who need to comply with the solid waste legislation. Through the purchase of credits, companies effectively subcontract cooperatives of Catadores to provide reverse logistics services.
The sale of Reverse Logistics Credits does not affect the ability of the Catadores to sell the physical material to be recycled. Reverse Logistics Credits only represent the environmental service provided by Catadores, i.e. the collection, screening, and direction of solid waste to recycling and re-utilization in the productive cycle – in other words, the service of reverse logistics. In this way, in addition to the revenue generated through the sale of recyclable materials, Catadores can also sell Reverse Logistics Credits to the companies that need this service to comply with the requirements of the National Solid Waste Legislation.
The system is in operation since 2013 and an initial survey of results was conducted involving 30 waste picker cooperatives and 1000 individual waste pickers that participated in the first year. These cooperatives recovered and sent for recycling ca. 1600 tonnes of solid waste during that year. The income from the sale of Reverse Logistics Credits increased the revenue of these cooperatives by 30%, providing an important social impact additional to the environmental impact of reducing pollution.
Environmentally, the additional value generated by the sale of credits makes it worthwhile for Catadores to collect waste materials with lower raw material value, widening the range of products collected beyond the current high value products, such as aluminium cans.
This effective and socially-inclusive circular economy mechanism paved the way for the creation of the 3R Initiative, the Circular Credits Mechanism and the Circular Action Hub, an international version of the Reverse Logistics Credit system.
USE OF PROCEEDS
The capital derived from the credits sold will be transferred to the Cooperatives, which will use it according to their immediate needs – mainly operational expenses related to the remuneration or capacitation of workers.
ABOUT THE ORGANIZATION
BVRio (www.bvrio.org) is a non-profit association created in 2011 with the objective to develop market mechanisms to facilitate compliance with Brazilian environmental laws. Since 2012 BVRio works with the promotion of the circular economy models, starting with the development of the Reverse Logistics Credits system (see www.bvrio.org/publicacoes) which involved over 7000 waste pickers since 2013. In 2017, BVRio joined standard-setter Verra (www.verra.org) and corporate partners Danone, Nestle, Tetra Pak, as well as NGOs and academia, to create the 3R Initiative (www.3r-initiative.org), which in turn led to the creation of the Circular Action Hub.
BVRio is a Climate Action Leader of the R20 Regions for Climate Action initiative, and received the Katerva Awards 2013 for Economy. BVRio was created in partnership with the Secretariats of Environment and Finance of Rio de Janeiro’s state and municipal government, and its governance structure includes representatives of the Brazilian World Business Council for Sustainable Development (CEBDS), Brazilian Foundation for Sustainable Development (FBDS), Federal University of Rio de Janeiro (COPPE - UFRJ), and E2 Socio Ambiental.
Rio de Janeiro / Brazil
Collection / Sorting
Plastics / Paper / Beverage carton / Glass / Metals
Tons Per Year: 85000