Insights

The era of landfilling is over.

Each year, Israel generates over 6 million tons of municipal waste, and nearly 80% of it is still buried in the ground. Landfilling is the worst possible solution for waste treatment. It contaminates soil and groundwater, emits greenhouse gases for decades, and consumes valuable land resources in a small country like ours. But the greatest damage is something else entirely — as long as landfilling remains available and cheap, there is no real incentive to develop and build advanced waste treatment facilities. Landfilling stifles innovation and progress in the field.

Recent remarks by the Chairman of Hiriya, in which he calls on the state to expand waste landfilling, may harm the development of the waste treatment market and condemn us to many more years of environmentally damaging landfilling. The technology is available, and only one thing prevents the State of Israel from making a true revolution in waste treatment — the continued reliance on cheap and seemingly convenient landfilling.

Today, Israel lacks many end-of-line waste treatment facilities. These technologies make it possible to generate energy from waste, recycle raw materials, and reduce the volume of landfilled waste by 60% or more. In Sweden, for example, less than 1% of waste is landfilled. In Germany, the figure is under 2%. Why does Israel remain so far behind with 80%?

The answer is simple — as long as the state allows landfilling at low prices, there is no economic justification for investing in advanced treatment facilities. The current situation creates a market distortion. Instead of real competition between different technologies and approaches to waste treatment, there is a de facto monopoly of landfilling, which prevents the development of better and more environmentally friendly solutions.

The state must declare a clear and binding timeline for ending landfilling. Once the market understands that landfilling will no longer be an option in a few years, we will see real progress in initiatives and projects for end-of-line solutions. More companies and entrepreneurs will enter the field, competing to provide the most efficient, environmentally responsible, and cost-effective solutions. The result will be lower prices and continuous technological improvement, alongside a significant reduction in landfilled waste. Every ton of waste buried in the ground is a missed opportunity to generate energy, recycle materials, and create a true circular economy.

Global experience proves that when countries set clear targets for reducing landfilling, the market responds quickly and efficiently. In the European Union, landfill reduction directives led to a major leap forward in waste treatment technologies. Today, leading European countries landfill almost no waste at all, achieving this at reasonable costs while creating green jobs and clean energy.

Israel can and should lead in the field of waste treatment, just as it leads in other technological domains. The technology exists, is proven, and ready for implementation. The path forward requires a simple but critical decision — ending landfilling. This is not a call for massive government intervention or huge subsidies. On the contrary, it is a call to allow the free market to operate, competition to develop, and technology to prove itself, under enabling regulation and clear, decisive policy.

The choice lies with the state.

It must choose a cleaner, more efficient, environmentally and economically sound future. Once the market receives a clear signal, results will follow. It is time to stop burying our waste — and our opportunities — in the ground, and begin building an advanced, competitive, and environmentally responsible waste treatment industry. The time has come to declare it: the era of landfilling is over.

Aryeh Zauberman is the CEO of Smart Waste (Smart Waste Ltd.)

Direct link to the article:
https://www.calcalist.co.il/local_news/article/bj7rq3nweg

Currently, 80% of household waste in Israel is landfilled, but there’s good news: for the first time in the country, a new technological park will process over 400,000 tons of waste per year, converting it into green electricity and recycling many of its materials. This will enable local authorities to significantly reduce waste management costs while protecting the environment.

Where does the waste we throw away go? Of the more than 6 million tons of waste produced in Israel each year, 80% is landfilled. Landfilling not only consumes valuable land, it also pollutes groundwater, emits harmful greenhouse gases into the atmosphere, and causes numerous environmental damages. Landfill sites are disappearing, and disposal costs are rising sharply, forcing municipalities to spend hundreds of millions of shekels annually.

To lead the way toward a better future, Smart Waste, owned by the Shikun & Binui Group and the Blogen Group, is currently building an innovative park near the Shafdan site. It will be the largest and most advanced facility of its kind in Israel, treating over 400,000 tons of municipal waste annually.

Aryeh Zauberman, CEO of Smart Waste, sees the technological park as a true revolution. According to him, the solution will provide local authorities with a readily available, environmentally friendly, and competitive alternative, with costs lower than other market solutions—especially compared to environmentally harmful landfilling.

The park will be a breakthrough in waste management in Israel. We have taken on a challenging mission—to lead an environmental and technological solution at the highest global standard, while maintaining competitive pricing,’ Zauberman said.

What are the problems with landfilling waste?

Landfilling waste is one of the biggest environmental problems, and there are many reasons: it wastes valuable land that is becoming increasingly scarce. In addition, landfill sites cause serious environmental hazards—they pollute groundwater, emit harmful methane gas into the atmosphere, produce foul odors, and attract animals that can spread diseases. Furthermore, landfills are prone to fires that can cause additional air pollution.

The landfill solution is not sustainable: in Israel, unlike other advanced countries, per capita waste production is increasing, in contrast to the trend in the Western world, where waste generation is declining. Moreover, Israel’s population is growing rapidly, and waste volumes are rising accordingly, quickly approaching a point where there will be no more space for landfilling. It is crucial to find alternative solutions that can turn waste from an environmental nuisance into a resource—a product that can be used.

Saving municipalities and improving the environment.

The new technological park will help not only the environment but also significantly ease the burden on the surrounding local authorities. ‘Today, local authorities have the opportunity to be part of the environmental revolution and to lead a significant initiative with us that will save them substantial funds,’ says Zauberman. The park will allow them to reduce the high costs associated with waste collection, transportation, and landfilling. Additionally, it will replace old transfer stations that are an environmental nuisance in various cities, significantly reducing the number of trucks traveling through urban areas to these stations.

From waste to green electricity.

The technological park, to be built near the Shafdan site, will operate advanced sorting technologies that allow for increased recovery of materials for recycling. Unlike other sorting facilities, the park will treat the organic stream (wet waste) using anaerobic digestion, producing biogas for electricity generation and recyclable materials.

‘The planning and construction of the park involved some of the world’s leading companies,’ emphasizes Zauberman. ‘We will operate it as a closed system that benefits the environment, turning waste into a resource—both by generating green electricity and producing materials for recycling and reuse in various industries. In doing so, we are offering a solution to one of Israel’s most severe environmental problems today: waste landfilling.

How does it work?

100% of the waste received at the park is treated after being received at the technological facility. The waste undergoes automatic sorting using advanced, high-level systems to maximize the recovery of materials for reuse. Organic waste is sent to digesters where biogas is produced. The biogas is cleaned of contaminants and used to generate 4.8 megawatts of green electricity fed into the power grid. Residual organic material undergoes a stabilization process, while other sorted residues go through biological drying.

In its initial phase, the park will reduce landfilling from 80% to 40%, and later, in collaboration with local authorities, it could reduce landfilling to as low as 20%. The park operates in enclosed buildings under negative pressure (preventing untreated air from escaping) and is connected to an advanced air treatment system to prevent odors, without burning waste.

The park is an environmental breakthrough. It is part of the solution to a national and local problem, improves environmental quality, and significantly reduces environmental nuisances. The park will operate under strict oversight by authorities and with full transparency to ensure a cleaner and safer environment.

Local authorities claim that the increase in landfill disposal fees amounts to approximately NIS 150 million per year, a burden that could lead to their financial collapse. The broader crisis in the sector is making it extremely difficult for authorities to find suitable sites for waste disposal.

The Local Government Center is demanding that the Israel Land Authority (ILA) cancel the system of collecting royalties from waste landfill sites for the use of land. This demand is based on the claim that companies operating the landfills have begun passing on the additional fees, which were set several years ago, to the local authorities.

Local government officials warn that this situation could drive municipalities into financial collapse. This dispute adds to the wider waste disposal crisis caused by a shortage of landfill sites, which further limits the authorities’ ability to find appropriate locations for waste disposal.

About four years ago, the Israel Land Authority decided to change the method used to calculate royalties collected from landfill operators, ruling that operators would be required to pay per ton of waste. The decision was based on the assumption that the change would not harm local authorities. However, according to local government representatives, this assumption has proven incorrect.

Recently, several of the largest landfill sites informed local authorities that they are raising the fees charged to waste collection trucks in order to incorporate the royalty component.

In its appeal to the Israel Land Authority, the Local Government Center stated that local authorities are a “captive customer” of landfill operators, due to the lack of alternatives to landfilling and the fact that approximately 80% of waste in Israel is currently sent to landfills.

Therefore, local authorities have no choice but to pay the additional amount, which accumulates to an annual cost of approximately NIS 150 million. “This represents an extreme lack of reasonableness given the already exorbitant landfill costs,” the appeal states. “Local authorities are facing collapse, and any additional burden could tip the scales. We demand that the Israel Land Authority freeze the royalty requirement and use all the tools at its disposal to prevent the cost from being passed on to the authorities.”

The total amount collected from local authorities for landfilling is influenced, among other factors, by market concentration in the waste disposal sector, which prevents price reductions. Local government accuses the regulators—including the Israel Land Authority and the Ministry of Environmental Protection—of failing to address this concentration, and of not acting to establish waste treatment facilities that do not rely on landfilling, even as landfill fees continue to rise. These facilities include sorting and recycling plants and energy generation from waste. “The Israel Land Authority has the authority and capability to allocate land for the establishment of such facilities while creating economic incentives,” the Local Government Center noted in its appeal.

In recent years, the Ministry of Environmental Protection has initiated the establishment of several waste treatment facilities that do not rely on landfilling. One of the largest among them is the Smart Waste facility, currently under construction in Rishon LeZion, which is based, among other things, on biological decomposition processes that generate gas from which electricity can be produced. The facility is expected to begin operations in 2026, but its operation depends on signing agreements with local authorities to divert their waste to the facility. Due to the general uncertainty prevailing in the sector, signing these agreements has proven difficult.

To date, the Ministry of Environmental Protection has failed in its attempts to regulate landfill disposal prices and therefore turned to the inter-ministerial pricing committee to formulate recommendations. Although the committee reached conclusions, the Ministry of Finance has so far delayed their implementation. About three weeks ago, Minister of Environmental Protection Idit Silman and her ministry’s Director General, Assaf Yazdi, approached the Ministry of Finance and demanded that the committee be convened to reach a final decision on the matter.

In response, the Israel Land Authority stated:
“The royalty system was designed to create certainty. The transition to this system and the royalty rates by waste type were carried out in full and close coordination with the Ministry of Environmental Protection, with responsible implementation and at conservative, cautious levels. An economic analysis recently conducted by the Authority demonstrated that the royalty rates are significantly lower than the customary tariffs in the sector and leave wide profit margins for landfill operators, meaning there is no justification for passing the cost on to end consumers. If there are market failures as claimed, regulatory bodies such as the Competition Authority or the inter-ministerial pricing committee should address them; however, this is unrelated to the royalty mechanism and is not within the Authority’s mandate. The claim regarding land allocation is unfamiliar to the Authority. The regulator in this matter is the Ministry of Environmental Protection, and the Israel Land Authority works with it to provide land-related solutions for waste treatment facilities as required.”