A first assessment of Hong Kong's circular economy for wastepaper: Material flows, value chains and the role of the semi-formal informal recycling sector

Abstract

Collection, as the first stage of the recycling process, and pre-processing to increase waste stream purity constitute key operations for achieving high recycling rates and a closed loop in the circular economy. For wastepaper recycling in Hong Kong, it is the semi-formal-informal recycling (SFIR) sector that plays a central role in both stages. This study analyses the so far little explored SFIR stakeholder network in Hong Kong and sheds light on value chains, recovered waste paper quantities and the impact of policies on the sector. The findings show that SFIR stakeholders reclaim 55.6 t/recycling station/month of wastepaper and thereby achieve about a 5.7 times higher reclaim rate than the formal-private recycling system. Critical to this achievement is the SFIR transaction network, which enables its stakeholders to develop a value chain and thereby generate an added value of around 1900 HKD (243.9 USD/t) for wastepaper. Given limited circular structures in Hong Kong, financial subsidies are critical to sustain the SFIR's operations over the short-term. However, over the long-term legalization and integration of its stakeholders are necessary to ensure an economically and socially sustainable wastepaper recovery system in Hong Kong.