Hong Kong Launches New Subsidy Scheme to Boost Paper Recycling

SEATTLE (Scrap Monster):  The Hong Kong government has launched a new scheme aimed at promoting paper recycling in the country. The new plan is expected to benefit domestic recyclers since imposition of ban on imports of waste including paper, plastic and metals by the Chinese government authorities.

As per the announcement by Financial Secretary Paul Chan Mo-po during his recent budget speech, the government has decided to earmark not less than HK$300 million per year for the new scheme that focus on recycling waste paper. Accordingly, the Environmental Protection Department (EPD) will award contract to paper recyclers for collecting, sorting and packaging waste paper for export to other countries, starting from H2 2020.

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The government scheme proposes subsidy of up to HK$600 for each tonne of newspapers, cardboards or office paper during the initial six-month period. At the same time, frontline collectors will be paid HK$700 per tonne. This could bring in stability to waste paper prices, the government noted.

However, the decision received widespread criticism from companies that have resorted to export of pulped paper, in a bid to bypass China’s ban. Incidentally, pulped paper exports are not covered under the subsidy scheme.