GCBC Logo

Carbon Finance and the Funding Gap for Municipal Solid Waste Management in Developing Countries: Opportunities and Limitations

Carbon Finance and the Funding Gap for Municipal Solid Waste Management in Developing Countries: Opportunities and Limitations

Year Published

2025

Contributing Organizations

Catalytic Finance Foundation
German Development Cooperation (GIZ)
German Federal Ministy for Economic Affairs and Climate Action (BMWK)
Global Methane Hub
International Climate Initiative (IKI)
Rocky Mountain Institute (RMI)

Type of Resource

Guidance
Research/Insights Report

Languages

English

Relevant Topics

Core Topic
Carbon Markets & Carbon Finance

Target Audience

Technical Assistance Providers
Project Developers
MDBs/DFIs
Governments & Policymakers
Advisors & Consultants

Relevant Geography

Latin America and the Caribbean
Asia & the Pacific
Africa
Central Asia
Middle East and North Africa
Carbon Finance and the Funding Gap for Municipal Solid Waste Management in Developing Countries: Opportunities and Limitations

Resource Description

This whitepaper analyses how carbon finance can enhance municipal solid waste (MSW) management in developing countries by leveraging international, domestic, and voluntary markets.

Why This Matters

Carbon finance can bridge funding gaps in MSW, cut methane, improve urban health, and mobilize private capital for climate and development goals.

Key Insights

  • MSW generates ~20% of global methane emissions but remains underfunded by climate finance
  • OPEX accounts for 70% of costs yet is rarely financed, weakening project sustainability
  • MSW carbon credits rose from 5m (2016) to 23m (2024), with added potential via Article 6
  • International markets offer scale but are costly; domestic markets are locally aligned but small; voluntary markets flexible yet volatile
  • Case studies show carbon finance improves viability, especially when combined with policy incentives and capacity building

Secondary File Resources

Secondary Resource Link(s)
Link to article from Catalytic's website

Was this resource helpful?

We'd love to hear from you! You can share your feedback or suggest a resource below.

Share Your FeedbackSuggest a Resource

Related Resources

Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets resourceDecoding Carbon Markets: A simple guide for engaging and trading under carbon markets resource

Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets

2025

SD
Unlocking the Potential of Carbon Markets in Pakistan resourceUnlocking the Potential of Carbon Markets in Pakistan resource

Unlocking the Potential of Carbon Markets in Pakistan

2024

SD
Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resourceBridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resource

Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement

2024

CA
H
CORSIA and Article 6: A Crucial Intersection in International Climate Policy resourceCORSIA and Article 6: A Crucial Intersection in International Climate Policy resource

CORSIA and Article 6: A Crucial Intersection in International Climate Policy

2024

CA
H
The Power of Integrity: Article 6 and the Future of Carbon Markets resourceThe Power of Integrity: Article 6 and the Future of Carbon Markets resource

The Power of Integrity: Article 6 and the Future of Carbon Markets

2024

EP
CA
A Toolbox series for Article 6 implementation resourceA Toolbox series for Article 6 implementation resource

A Toolbox series for Article 6 implementation

2023

GG
Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resourceCarbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resource

Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design

2022

IM
Carbon Market: Global Perspective – Webinar resourceCarbon Market: Global Perspective – Webinar resource

Carbon Market: Global Perspective – Webinar

2021

SB
IF
IF
Carbon Pricing: What Role for Border Carbon Adjustments? resourceCarbon Pricing: What Role for Border Carbon Adjustments? resource

Carbon Pricing: What Role for Border Carbon Adjustments?

2021

IM
Transition Planning for Banks - 12 tips for Board Directors resourceTransition Planning for Banks - 12 tips for Board Directors resource

Transition Planning for Banks - 12 tips for Board Directors

2025

CG
Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets resourceDecoding Carbon Markets: A simple guide for engaging and trading under carbon markets resource

Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets

2025

SD
Unlocking the Potential of Carbon Markets in Pakistan resourceUnlocking the Potential of Carbon Markets in Pakistan resource

Unlocking the Potential of Carbon Markets in Pakistan

2024

SD
Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resourceBridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resource

Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement

2024

CA
H
CORSIA and Article 6: A Crucial Intersection in International Climate Policy resourceCORSIA and Article 6: A Crucial Intersection in International Climate Policy resource

CORSIA and Article 6: A Crucial Intersection in International Climate Policy

2024

CA
H
The Power of Integrity: Article 6 and the Future of Carbon Markets resourceThe Power of Integrity: Article 6 and the Future of Carbon Markets resource

The Power of Integrity: Article 6 and the Future of Carbon Markets

2024

EP
CA
A Toolbox series for Article 6 implementation resourceA Toolbox series for Article 6 implementation resource

A Toolbox series for Article 6 implementation

2023

GG
Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resourceCarbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resource

Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design

2022

IM
Carbon Market: Global Perspective – Webinar resourceCarbon Market: Global Perspective – Webinar resource

Carbon Market: Global Perspective – Webinar

2021

SB
IF
IF
Carbon Pricing: What Role for Border Carbon Adjustments? resourceCarbon Pricing: What Role for Border Carbon Adjustments? resource

Carbon Pricing: What Role for Border Carbon Adjustments?

2021

IM
Transition Planning for Banks - 12 tips for Board Directors resourceTransition Planning for Banks - 12 tips for Board Directors resource

Transition Planning for Banks - 12 tips for Board Directors

2025

CG
Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets resourceDecoding Carbon Markets: A simple guide for engaging and trading under carbon markets resource

Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets

2025

SD
Unlocking the Potential of Carbon Markets in Pakistan resourceUnlocking the Potential of Carbon Markets in Pakistan resource

Unlocking the Potential of Carbon Markets in Pakistan

2024

SD
Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resourceBridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resource

Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement

2024

CA
H
CORSIA and Article 6: A Crucial Intersection in International Climate Policy resourceCORSIA and Article 6: A Crucial Intersection in International Climate Policy resource

CORSIA and Article 6: A Crucial Intersection in International Climate Policy

2024

CA
H
The Power of Integrity: Article 6 and the Future of Carbon Markets resourceThe Power of Integrity: Article 6 and the Future of Carbon Markets resource

The Power of Integrity: Article 6 and the Future of Carbon Markets

2024

EP
CA
A Toolbox series for Article 6 implementation resourceA Toolbox series for Article 6 implementation resource

A Toolbox series for Article 6 implementation

2023

GG
Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resourceCarbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resource

Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design

2022

IM
Carbon Market: Global Perspective – Webinar resourceCarbon Market: Global Perspective – Webinar resource

Carbon Market: Global Perspective – Webinar

2021

SB
IF
IF
Carbon Pricing: What Role for Border Carbon Adjustments? resourceCarbon Pricing: What Role for Border Carbon Adjustments? resource

Carbon Pricing: What Role for Border Carbon Adjustments?

2021

IM
Transition Planning for Banks - 12 tips for Board Directors resourceTransition Planning for Banks - 12 tips for Board Directors resource

Transition Planning for Banks - 12 tips for Board Directors

2025

CG
Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets resourceDecoding Carbon Markets: A simple guide for engaging and trading under carbon markets resource

Decoding Carbon Markets: A simple guide for engaging and trading under carbon markets

2025

SD
Unlocking the Potential of Carbon Markets in Pakistan resourceUnlocking the Potential of Carbon Markets in Pakistan resource

Unlocking the Potential of Carbon Markets in Pakistan

2024

SD
Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resourceBridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement resource

Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement

2024

CA
H
CORSIA and Article 6: A Crucial Intersection in International Climate Policy resourceCORSIA and Article 6: A Crucial Intersection in International Climate Policy resource

CORSIA and Article 6: A Crucial Intersection in International Climate Policy

2024

CA
H
The Power of Integrity: Article 6 and the Future of Carbon Markets resourceThe Power of Integrity: Article 6 and the Future of Carbon Markets resource

The Power of Integrity: Article 6 and the Future of Carbon Markets

2024

EP
CA
A Toolbox series for Article 6 implementation resourceA Toolbox series for Article 6 implementation resource

A Toolbox series for Article 6 implementation

2023

GG
Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resourceCarbon Taxes or Emissions Trading Systems?: Instrument Choice and Design resource

Carbon Taxes or Emissions Trading Systems?: Instrument Choice and Design

2022

IM
Carbon Market: Global Perspective – Webinar resourceCarbon Market: Global Perspective – Webinar resource

Carbon Market: Global Perspective – Webinar

2021

SB
IF
IF
Carbon Pricing: What Role for Border Carbon Adjustments? resourceCarbon Pricing: What Role for Border Carbon Adjustments? resource

Carbon Pricing: What Role for Border Carbon Adjustments?

2021

IM
Transition Planning for Banks - 12 tips for Board Directors resourceTransition Planning for Banks - 12 tips for Board Directors resource

Transition Planning for Banks - 12 tips for Board Directors

2025

CG