Public Commentary: The information below outlines FG Capital’s approach to Municipal Solid Waste (MSW) carbon-credit transactions. It is provided solely for informational purposes and does not constitute investment advice or a solicitation.
MSW Carbon Projects – Municipal Solid Waste Structuring & Credit Generation
Modernising municipal-solid-waste systems—through source segregation, organics composting, mechanical-biological treatment (MBT), and sanitary landfill upgrades—reduces fugitive methane emissions and avoids open burning. When measured and verified against credible baselines, these interventions yield certified emission reductions that complement tipping-fee and recyclate revenues. FG Capital provides end-to-end technical diligence, structured finance, and dependable credit placement to convert waste-sector reforms into resilient cash flow.
Project Scope
• Source-Segregation & Collection:
Provision of colour-coded bins, smart-routing vehicles, and digital tracking.
• Organics Composting / AD:
Windrow or in-vessel composting and small-scale digesters for food and green waste.
• Mechanical-Biological Treatment:
Automated sorting, bio-drying, and production of refuse-derived fuel (RDF).
• Sanitary Landfill Rehabilitation:
Daily cover, leachate control, and passive gas-venting systems.
• Monitoring Infrastructure:
Weighbridges, waste-characterisation audits, and emissions-tracking software.
Advisory Framework
1 | Feasibility & Baseline Assessment
• Waste-stream characterisation, diversion-rate modelling, and landfill-gas forecasts in accordance with methodologies AMS-III.AJ, AMS-III.F, or AM0025.
2 | Capital Structuring
• Public-private-partnership (PPP) concessions, senior project debt, subordinated facilities, and equity aligned with tipping-fee, recyclate, and credit revenues.
• Advance credit-purchase contracts strengthening debt-service cover.
3 | Engineering Oversight
• EPC tender evaluation, performance-guarantee negotiation, and construction monitoring.
• Compliance with local environmental-impact and permitting requirements.
4 | MRV & Certification
• Continuous tonnage tracking, periodic waste-composition studies, and third-party verification.
5 | Credit Monetisation
• Long-term offtake agreements with compliance entities or voluntary buyers; spot-sale facilitation after credit issuance.
Indicative Financial Parameters
| Metric | Compost / AD Focus | Full MBT Facility |
|---|---|---|
| CapEx (USD / t MSW annual) | 120 – 200 | 280 – 450 |
| Emission-Reduction Factor (tCO 2 e / t MSW) | 0.25 – 0.40 | 0.35 – 0.55 |
| Forward Credit Price (USD / t) | 8 – 12 | |
| Target Equity IRR (post-tax) | 12 % – 16 % | 13 % – 17 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Project Debt | Pledge over plant, tipping-fee, and energy-offtake contracts | SOFR + 250 – 325 bps | Infrastructure lenders, multilateral banks |
| Subordinated Facility | Second-ranking charge; cash-sweep covenant | SOFR + 450 – 600 bps | Private credit funds |
| Advance Credit Purchase | Delivery contract with make-good provisions | Fixed price USD 9 / t | Compliance entities, corporate buyers |
| Sponsor Equity | Residual cash flow | Target IRR 12 % – 18 % | Municipal SPVs, waste-management firms |
Stakeholder Benefits
- Municipal Authorities: Diversion targets met, landfill-lifespan extended, and financial predictability enhanced.
- Credit Purchasers: High-integrity avoidance credits supporting methane-reduction commitments.
- Investors: Contracted revenue from tipping fees, recyclate sales, and carbon credits.
- Communities: Reduced odour, improved air quality, and new employment opportunities.
Engagement
Stakeholders exploring municipal-solid-waste modernisation are invited to engage with our advisory team. We would be pleased to discuss feasibility studies, optimal financing structures, and comprehensive monitoring arrangements.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information contained herein.
