Synergizing Productive Capital & Impact Investment | Upcycling Urban Byproducts: Catalyzing Ecological Transformation Through Municipal Stewardship Date：2025/04/08
Today, with the continuous acceleration of the urbanization process, the treatment of urban waste has become a global challenge. According to the global waste management forecast released by the United Nations Environment Programme, the annual generation of global waste will exceed 2.3 billion tons. Traditional waste treatment methods such as landfilling and incineration not only occupy land resources and cause environmental pollution, but also struggle to meet the needs of urban sustainable development. The maturity and promotion of waste-to-energy(WtE) technology have provided an efficient and environmentally friendly solution for urban management to break the current situation.
Part 1： The Path from "Waste" to "Energy"
WtE power generation refers to the conversion of domestic waste generated in cities into electrical energy or thermal energy through technologies such as high-temperature incineration or biological fermentation. This process can not only significantly reduce the amount of waste sent to landfills, but also lower greenhouse gas emissions, effectively alleviating the crisis of urban energy shortage. For example, the Bao’an Energy and Ecological Park, operated by Shenzhen Energy Group, is the world’s largest single WtE park. Utilizing cutting-edge technology, it generates 600 kWh of electricity per ton of waste, with emission levels better than the EU standards.
（Bao’an Energy and Ecological Park）
Africa is undergoing the most rapid urbanization process globally, with projections indicating that over half of its population will reside in cities by 2030. This demographic shift has emerged as a core driver of economic growth across the continent.
The acceleration of urbanization presents Africa with dual challenges: urban waste generation is escalating at an annual rate of 10%, while 600 million people (IEA, 2024) still lack access to electricity. WtE technology addresses these challenges through a closed-loop "waste-to-energy" conversion system, achieving both significant waste stream reduction (85-92% diversion from landfills) and clean power generation (5.2-6.8 MJ/kg energy efficiency). By doing so, it empowers energy-deficient regions with renewable electricity while enabling Africa to transition from a "problem bearer" to a "solution contributor" in global climate governance.
（Africa Waste Management Outlook 2024）
Part II. Providing Solutions for "Urban Environmental Governance"
Technological advancements have amplified the economic viability of WtE incineration, with its comprehensive electricity generation costs now 12–15% cheaper than diesel power. This cost-effectiveness makes it well-suited for Africa’s densely populated urban areas. As a key strategy for urban decarbonization and pollution mitigation, incineration achieves 0.3 metric tons of CO₂-equivalent reductions per ton of waste processed—significantly outperforming traditional landfill methods.
Innovative byproduct management systems further strengthen its sustainability credentials:
Incineration slag is transformed into construction aggregates via granulation technology
Leachate undergoes advanced MBR treatment to achieve >95% water recycling rate.
This circular lifecycle model reduces urban resource dependency by 23% while generating green jobs. For every 10,000 tons of waste processed, 150 employment opportunities are created across sorting, transportation, and maintenance sectors. This aligns seamlessly with Africa’s implementation of UN Sustainable Development Goal 11: " To make cities and human settlements inclusive, safe, resilient, and sustainable ."
（International Journal of Engineering Applied Sciences and Technology, 2023）
Part III. "Tripartite Collaboration" to Facilitate Market-oriented Development
In Africa, waste-to-energy represents more than just industrial innovation—it serves as a strategic nexus integrating governance expertise, financial enablement, and technological advancement. By harmonizing these three pillars, WtE unlocks endogenous momentum for green circular urban development.
1.The Operation Model of Waste-to-Energy
The government introduces social capital through the Build-Operate-Transfer (BOT) or Public-Private Partnership (PPP) model. Enterprises are responsible for the investment, construction, and operation of WtEplants. The government ensures the long-term earnings of enterprises through concession agreement. At the same time, the government formulates strict environmental protection standards, requiring a reduction in the amount of waste sent to landfills and an increase in the proportion of waste incineration in waste treatment.
2.The Business Model of Waste-to-Energy
(1) Host Country: Provides infrastructure support, financial subsidies, regulatory frameworks, and fiscal incentives to encourage WtE investment and development
Provision of the land and integrated waste collection systems
Budget allocations for waste treatmentfees and power purchase agreements
Enactment of Renewable energy grid priority laws to ensure power off-take.
Implementation of tax incentives
(2) Industry Participants: Oversee project development, investment, technology transfer, and operational management.
(3) China-Africa Development Fund: Participate in investment, share risks, assist in project development and financing, engage in post-investment management, and guide ESG (Environmental, Social and Governance) governance.
