New WasteMINZ research shows waste efficiency is as good for New Zealand’s economy as it is for the environment
A new report shows the waste, resource recovery and contaminated land management sectors contribute over $3.3 billion to the New Zealand economy and support over $6 billion in economic activity – but waste inefficiencies are costing the country $222.8 million annually in avoidable disposal costs.
The report, written by New Zealand Institute of Economic Research and commissioned by WasteMINZ, provides the most comprehensive snapshot to date of the sector’s direct and indirect contributions – and makes the case for stronger investment, better data and policy settings that reflect the sector’s critical infrastructure role.
WasteMINZ CEO Nic Quilty said Kiwis consumed more materials per capita, but the country’s material productivity was just 59% of the average of OECD countries.
“Material productivity measures the amount of valuable goods and services that result from the use of materials. An estimated 40% of waste sent to class 1 landfills in Aotearoa is divertible and as a country we have a huge opportunity to increase productivity, to better utilise materials in domestic production, keep materials circulating in our economy to avoid the need to buy, extract or grow new materials and to reduce disposal costs and greenhouse gas emissions,” Quilty says.
“WasteMINZ’s report shows the sector isn’t just about cleaning up; it’s about driving economic growth, reducing emissions, and helping New Zealand meet its economic and environmental goals. This sector needs to be recognised as core infrastructure, not a side issue.”
Quilty says smarter policy, more targeted investment and better data around waste management could help to increase the country's economic gain through material productivity.
“With improved waste efficiency, as a country we can improve economic growth, create more jobs and reduce pressure on landfill. A focus on material productivity, supported by effective management of waste, is good for the economy and the environment.”
Quilty says the waste, resource recovery and contaminated land management sectors are concerned that the government has expanded the allocation of the waste disposal levy and reduced the Waste Minimisation Fund by 49% in May’s budget – this is a missed opportunity to actively invest to improve material productivity for the benefit of all New Zealanders.
The cost of waste inefficiencies to households is also highlighted in the report. The report references prior research by the Prime Minister’s Chief Science Advisor, which shows that wasted food alone is estimated to cost the average household $1,500 every year. Additionally, local council spending on solid waste management has increased, reaching $629 million in 2023. The cleaning up of waste that is illegally dumped also costs ratepayers millions of dollars each year.
The new NZIER report aims to bring together information to fill gaps in quantifying the economic impacts of the sector that contributes by supplying products, freeing up usable land and mitigating negative effects of waste materials.
“Done well, waste management protects public health, supports businesses and delivers significant environmental and economic benefits. The waste, resource recovery and land management sector is not a niche industry, it underpins our economy, environment and communities,” Quilty says.
“The sector’s contribution to Aotearoa is actually even broader than what is monetised as it provides value through reduced emissions and volunteer-driven community initiatives along with helping to address illegal dumping of rubbish, food waste, and air pollution from the burning of waste.”
Report key findings
- The waste, resource recovery and contaminated land management sectors contribute over $3.3 billion to the New Zealand economy but waste inefficiencies are costing the country $222.8 million annually in avoidable disposal costs
- New Zealand’s material productivity was just 59% of the average of OECD countries (despite Kiwis consuming more materials per capita)
- An estimated 40 percent of waste sent to class 1 landfills is divertible and as a country we have a huge opportunity to improve waste management
- Carbon emission efficiencies would come with better disposal and management of waste, with future costs of abating emissions from waste estimated at $481 million
- The waste, resource recovery and contaminated land management sectors contribution to Aotearoa is even broader than environmental and economic benefits, through reduced emissions and volunteer-driven community initiatives along with helping to address illegal dumping of rubbish, food waste, and air pollution from the burning of waste
- Read the full report: Waste, resource recovery and contaminated land management, assessing the economic contributions of the sectors to New Zealand
