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Waste Management a Fundamental Component of Energy Transition

By Yolanda Villegas - Envases
Legal Director

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Yolanda Villegas By Yolanda Villegas | Legal Director - Tue, 12/02/2025 - 08:30

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Waste management in the energy sector is one of those issues that often remain on the margins of the main debate around the energy transition, which typically focuses on topics such as renewable energy, energy efficiency, and electrification. However, it is a key issue to ensure proper transformation. As the world moves toward a low-emissions economy, waste is emerging as a factor that can become either an environmental hazard or an opportunity, depending on how it is managed.

It is a fact that the growth of the energy sector necessarily implies a parallel increase in waste generation, both in conventional operations and in emerging technologies. Wind turbines, solar panels, batteries, and other equipment all have a limited lifespan and once reached, they require removal, recycling, material recovery, or proper disposal. If this is not taken into consideration, the volume of energy-related waste could become an additional burden on already saturated waste management systems.

Waste-to-energy (WtE) technologies are gaining significant traction. According to global market estimates, the WtE market was valued at approximately 46.4 billion dollars in 2024 and is projected to reach 72.4 billion by 2033, with a compound annual growth rate (CAGR) of 5.1% between 2025 and 2033. These types of facilities allow solid waste to be converted into electricity, heat, or fuel, thereby reducing the need for landfills, mitigating methane emissions, and generating a usable energy flow.

Proper waste management helps reduce dependence on polluting energy sources. For instance, when a waste treatment facility produces biogas that are used for electricity or heat generation, it reduces reliance on imported fossil fuels, diversifies the energy matrix, and creates a resource recovery cycle that would otherwise be a source of loss and emissions.

From the perspective of costs and externalities, poor waste management in the energy sector can generate significant impacts that affect not only the climate but also public health and the economy. Recent data estimates that global municipal solid waste generation will increase from approximately 2.3 billion metric tons in 2023 to 3.8 billion by 2050, if better management practices are not adopted.

One of the main challenges of energy waste management is the lack of institutional coordination, the absence of specific regulatory frameworks for emerging energy technologies, and the high costs of certain specialized treatments. Many countries still lack a clear regulatory regime for the recycling of solar panels at the end of their life, or for the removal of batteries from large-scale storage facilities.

When recycling clauses are included in large-scale dismantling and material recovery contracts for power plants, the environment becomes the biggest beneficiary. In many countries, waste valorization is now recognized as a material contribution toward achieving emission reduction targets formalized in national energy and climate plans.

As it is expected, incorporating this vision requires a complete shift in institutional culture. The energy sector must acknowledge that the end of the operational life of its large assets is not the closing of a chapter, but merely its continuation within a broader cycle. Projects must be planned from the outset for the logistics of withdrawal, treatment, and recycling, and these phases must be backed by budgets, contracts, and clearly defined technical responsibility.

On the regulatory side, waste management frameworks must evolve as technology advances. Falling behind is no longer an option. General laws on solid waste are no longer sufficient; we need specific regulation for energy-related waste, incentives for the recovery of critical materials, extended producer responsibility policies for energy equipment, and tariff systems that account for the environmental costs at the end of the asset’s life.

A circular economic approach applied to the energy sector is now more indispensable than ever. When energy-related waste is considered as a value-generating element from the design stage, raw material extraction is reduced, emissions from processing and transport are lowered, equipment lifespans are extended, and less waste is generated at the end of the product's life cycle.

Waste can also be considered as fuel for certain technological processes such as waste gasification, pyrolysis, anaerobic digestion, and biogas recovery in landfills. While many waste-to-energy plants are still in experimental stages, they are already showing promising results. The market for these technologies is expected to grow to 108.5 billion dollars by the year 2035, with a growth rate of approximately 7.6% between 2025 and 2035.

It is everyone’s responsibility to understand that waste management—not only in the energy sector—has an ethical and social dimension. The energy sector has a duty toward communities, ecosystems, and future generations. But it is also up to each of us, as individuals, to raise awareness about the opportunity that lies before us. Improper waste disposal and the pollution associated with irresponsible processes are not secondary issues. They pose a risk to human health, biodiversity, and the right to a clean and safe environment. The closure of the life cycle of energy assets must be handled with the same level of rigor as their commissioning; the sector cannot hope to maintain its legitimacy if this issue lacks concrete action.

Therefore, waste management is a matter of social responsibility, a key part of the energy transition, a factor that can distinguish competitive companies, and an essential component of sustainability. If the energy sector succeeds in integrating waste management into its strategic development plans, it will have taken a decisive step toward a truly sustainable and effective energy transition.

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