Types of Waste You Can Profit From
Not all waste is equally valuable when it comes to starting a recycling business. This is due to recent changes in legislation. Only regional operators have the right to collect, transport, and dispose of solid municipal waste (SMW), which includes household trash like food scraps and worn-out items.
While cities like Moscow, St. Petersburg, and Sevastopol had an extension until 2022, in most regions, this waste is managed by official operators.
So, theoretically, you could start a company, enter a tender, and win the right to manage waste disposal in a particular region. But unless you have connections or substantial experience, the chances of winning are slim.
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| How to Make Money from Waste Recycling. |
A more accessible option for beginners is focusing on waste that can be recycled and resold. These materials include:
- Scrap metals, like beverage cans
- LED and mercury lamps
- Paper and cardboard
- Tires
- Plastics, like polyethylene
- Glass containers
- Batteries and electronic devices
In total, there are about 182 types of recyclable materials you could explore.
How to Start Earning from Waste Recycling
1. Plan the Details
Before diving into the recycling business, you need to map out your plan carefully. Two key questions to consider are:
Where will you source your waste?
The source depends on the type of waste you choose to recycle. Some companies will even pay you to take waste like mercury lamps off their hands, as businesses are required by law to dispose of these materials responsibly.
You can also tap into the public’s growing environmental awareness by setting up collection bins for plastics, glass, or paper with permission from local authorities. Alternatively, you could host waste collection events where people can drop off recyclable items, and you could even offer payment for certain types of waste.
Finally, landfills could be another source of recyclable materials. While regional operators manage SMW, not every region has sorting and recycling plants, giving you an opportunity to step in.
Where will you sell the processed waste?
Let’s say you’re collecting batteries and extracting iron, zinc, and nickel from them. What’s next? You need to identify who will buy these materials and how much they’re willing to pay.
For reference, the price of processed waste per ton can be:
- Plastic: up to $165,50
- Aluminum cans: up to $551,67
- Rubber crumb: up to $176,53
- Pressed cardboard: up to $132,40
A small recycling plant can process up to 10 tons of waste per shift, so these prices add up quickly.
2. Equip Your Facility
There are ready-to-use recycling equipment sets available on the market, but you can also customize your facility by selecting individual pieces of equipment. Whichever route you choose, it’s essential to understand the technology behind waste recycling to avoid overspending or missing critical tools.
For example, the minimum setup for recycling plastic starts at around 7 million rubles. This includes a shredder capable of processing up to 6 tons of plastic per hour, conveyors, and a control panel. Keep in mind that you’ll also need to hire employees for your facility.
3. Register Your Business
Starting a recycling company involves more than just registering with the tax office. Waste collection and processing are regulated activities, so you’ll need a license from Rosprirodnadzor, the Russian environmental oversight body.
The application process requires the following:
- Application form
- Proof that you have the necessary facilities, equipment, and vehicles for waste handling
- Documentation that shows you have a trained staff member responsible for overseeing waste handling activities
You’ll also need permits from other agencies like Rospotrebnadzor and the fire department. Additionally, you’ll need to obtain a waste passport—a document that outlines how the waste will be processed and its potential hazards.
Here's a brief overview of what that entails:
- Gather information on the waste’s chemical properties and hazard class
- Submit these documents to Rosprirodnadzor for approval
- Create a waste passport according to the official template
Once approved, this document will allow you to begin processing the selected waste.
4. Set Up Your Waste Collection System
Once you’ve secured your permits and set up your facility, it’s time to start sourcing raw materials. Let’s say you’ve decided to focus on paper recycling and have set up collection bins for paper products. You’ll need to determine how often the bins will be emptied, hire trucks, and establish a schedule for your staff to handle the waste.
Key Points to Remember:
- It won’t happen overnight. The licensing process can take up to 3–4 months on average.
- It’s not cheap. Starting costs can run into the millions, depending on the type of waste you choose to recycle.
- The future is bright for waste recycling. Although Russia is still in the early stages of this industry, recycling has great long-term potential as a profitable business.
With the right planning, effort, and initial investment, recycling can turn waste into a valuable and sustainable business opportunity.
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