Germany has developed an effective formula allowing citizens to avoid overpaying for waste disposal and recycling by shifting the primary financial burden onto packaging manufacturers.
According to Hvylya, expert Oleh Popenko detailed the mechanics of this German "economic miracle" in the utility sector during a broadcast on the "Oleh Popenko PRO" YouTube channel.
In a conversation with urbanist Kostyantyn Funzhiy, Popenko explained why blind imitation of market-driven models, such as those in the U.S., is unsuitable for European waste management realities.
According to Popenko, Germany realized that high-quality waste disposal and recycling are too expensive even for a prosperous middle class. Had Germans been charged full market rates, monthly fees could have reached €100–150. Instead, actual household expenses are significantly lower.
"The real cost of waste collection for a family of three in Munich is approximately €15–17 per month. Part of this cost is offset by the 'dual system,' which collects funds from monopolies. This system generates up to a billion euros annually. These funds are used to build infrastructure—including reverse vending machines for plastic and glass bottles," Popenko explained.
The expert highlighted a fundamental difference in management: while the waste business in the U.S. is entirely private, in Germany, it is strictly a municipal responsibility. Waste collection there is a "purely communal business" with no room for private firms, and waste-to-energy plants are typically owned by local communities.
This approach stands in sharp contrast to the situation in Ukraine, particularly in Kyiv, where the market is divided among private companies. According to Popenko, the domestic model is often opaque: "We held a tender, and six private companies now handle waste removal in Kyiv. The boom there is so massive—and everyone knows how serious this business is—that you can't even go in and audit them."
