A Better Way to Recycle: co-operative and community ... - Urbed

4. Community Recyling: a way forwardstructures provide the basis for genuinecommunity involvement.• Business model. Co-operatives work to theprinciple of member economic participation,which allows members to invest in theirenterprise and receive a limited share of theprofits, based on their transactions with theco-operative. This is in contrast to the notfor-profitstructures used by somecommunity-based recycling initiatives, whichcan result in an over-reliance on grants andloan finance. Co-operative principlesrecognise the rights of members to a limitedreturn, whilst also requiring all co-operativesto set aside some of their profits toindivisible reserves.The global co-operative movement has a longhistory and tradition of using its values andprinciples to develop new solutions tocommunity concerns. Box 15 contains a casestudy of Kitakyushu ELV Co-operativeAssociation in Japan, which has developed ahighly innovative approach to the recovery andrecycling of scrap vehicles. By bringing togetherseven independent businesses involved indifferent aspects of the recycling and recoveryprocess, the co-operative has provided anequitable structure for joint investment andmarketing, based on a co-operative supplychain.Co-operative principles can be applied to a widerange of settings, engaging different types ofstakeholders in a variety of organisationalrelationships appropriate to the aims andobjectives of the enterprise. Box 16 contains adescription of how Sundance Renewables, aco-operative that makes biodiesel from wastecooking oil, has used a not-for-profit, workers’co-operative structure.4.3 A co-operative approach to recyclingTurning waste materials into the raw materialsfor a new and dynamic community recyclingsector can be greatly enhanced by adoptingco-operative values and principles. Adding valueto waste requires some level of initial capitalinvestment, and a secure supply of wastematerials. Both of these key inputs can beprovided by the community, in a way thatreinforces the commitment of the communityto the success of the co-operative. Structurescan be established that allow the community tobenefit from its supply of waste materials,through the community’s ownership and controlof recycling co-operatives.Communities are more likely to engage in wasterecycling and participate in waste segregationpractices if they benefit directly or indirectlyfrom these efforts. By investing some of theirprofits in the community, co-operatives canfulfil the seventh co-operative principle, concernfor community, and at the same time rewardtheir community for providing them with rawmaterials.This community/co-operative relationship canbe further reinforced by enabling thecommunity to invest in the co-operative, andpaying a return on that investment. Communitymembers with capital invested in theco-operative have a greater incentive tomaintain and increase their provision ofmaterials for recycling. By creating a virtuouscircle that connects the roles of supplier,investor, volunteer, worker and customer,community-based recycling co-operatives canbe at the leading edge of innovation in recyclingpractices.Although there are no UK examples ofsignificant community investment in recyclingco-operatives, there are precedents in otherareas of co-operative endeavour. A goodexample, illustrating the potential forcommunity investment, is Baywind EnergyCo-operative. Baywind owns and operates sixwind turbines in Cumbria, financed by over £2million share capital raised from the localcommunity and other supporters of windenergy. There is no reason why recycling projectscannot secure the same type and level ofsupport from the communities they serve.Co-operative structures can address some of themost significant challenges facing thecommunity waste sector. These include –• Achieving economies of scale, by formingco-operative consortia, similar to the TowerHamlets Community Recycling Consortium(see Box 11)• Securing community involvement, byoffering ownership and control throughA Better Way to Recycle 35