Auditing Infrastructure for Resilience and Innovation: Performance Audit on Biodegradable Waste Sorting in Latvia
Author: Agnese Jaunzeme, Sector Head, SAI Latvia
Role of infrastructure in waste management
Infrastructure is a fundamental pillar of resilience and innovation, particularly in sectors that impact sustainability and environmental management. Supreme audit institutions (SAIs) play a crucial role in evaluating whether public infrastructure investments align with national and international commitments, including climate goals and circular economy objectives. An audit conducted by the State Audit Office of Latvia (SAI Latvia) on biodegradable waste sorting provides valuable insights into the challenges of infrastructure planning, execution, and governance.
| Biological waste | |
| Biological waste includes biodegradable waste from gardens and parks, food and kitchen waste from households, offices, catering establishments (restaurants, eateries, etc.), wholesale and retail establishments, and other similar waste from food production facilities. | |
| Produce | Yard waste |
| Damaged fruit and vegetables, peels and cores, bread products, baked goods, cheese products, raw and cooked meat and fish (including bones), eggs and eggshells, nut shells, tea and coffee grounds, or similar leftovers. | Wilted and dead flowers and plants, roots, raked grass and leaves, weeds, mulch, small branches and other green waste from the house or yard. |
Methodology and expertise
To ensure a comprehensive and well-rounded assessment, SAI Latvia collaborated with an independent expert in waste management. The most significant challenge for the audit was the lack of reliable data in the national databases, which meant that the expert conducted the data analysis and developed a methodology based on an economical and mathematical model to calculate the estimated volume and flow of biodegradable waste. This approach made it possible to conduct an audit. This cooperation resulted in an in-depth analysis of technical aspects, including the efficiency of waste sorting systems and the suitability of the existing infrastructure to the predicted volumes and flows. The expert contributed to evaluating whether municipalities had adequate facilities to support biodegradable waste collection and processing, and in identifying technological and operational gaps.
The audit applied a combination of methods, such as: document analysis, site visits, stakeholder interviews, including discussions with municipal representatives, waste management companies, and policymakers. The methodology also included benchmarking against best practices within the European Union, enabling auditors to assess Latvia’s progress in comparison to other EU countries. Financial data and investment efficiency were also examined to determine whether funds allocated for waste management were being utilized effectively.
Audit results
The audit revealed that, while Latvia has made progress in establishing a system for biodegradable waste management, significant gaps remain in implementation. Infrastructure for waste sorting, collection and processing is in place but lacks the necessary efficiency and innovation to meet environmental targets. Delays in infrastructure projects have resulted in higher costs and inefficiencies, undermining the country’s ability to achieve waste management goals.
One of the most concerning findings was that some municipalities received substantial funding for waste sorting infrastructure – amounting to a total of over 10 million euros – yet the implementation of projects lagged behind expectations. In some cases, the planned waste processing facilities were not built on time, leading to a reliance on alternatives that were more expensive and were less effective solutions. Furthermore, procurement delays and a lack of coordination among national and local governments exacerbated these inefficiencies.
The results of SAI Latvia’s calculations indicate that, by not implementing a sorting and collection system for biodegradable waste in the entire country, the residents of Latvia were not able to gain a potential savings amounting to at least 16.576.830 euros in the period from the years 2012 to 2023.
Challenges in municipal waste sorting
Despite legal requirements for municipalities to implement separate biodegradable waste collection, only a fraction of municipalities had fully established systems. In some cases, collection points were inaccessible or inconvenient for residents, leading to low participation rates. The audit found that in certain regions, as little as 20% of households actively sorted their biodegradable waste, significantly below national targets.
The lack of investment in infrastructure for sorting and processing biodegradable waste has created inefficiencies in achieving waste reduction targets. For example, a municipality in central Latvia received 2 million euros for the development of a modern composting facility. However due to administrative complications, the facility was not operational at the time of the audit. This resulted in increased transportation costs since waste had to be sent to facilities in other regions.
Furthermore, funding allocated for waste management infrastructure has not always been used effectively, with some projects experiencing delays due to administrative barriers or ineffective coordination between responsible institutions.
Inconsistencies in waste collection fees
A significant issue identified in the audit was the inconsistency in waste collection and processing fees, which varied widely across municipalities. Some residents were paying nearly double the amount for waste collection compared to neighbouring regions with similar service levels. In one case, a municipality was charging 15 euros per household per month for biodegradable waste collection, while another municipality nearby offered the service for just 7.50 euros.
The audit recommended the need for a more standardized approach to pricing and service availability, ensuring that all residents have equal access to waste sorting infrastructure. Furthermore, the lack of monitoring and control mechanisms has made it difficult to assess whether the objectives of waste sorting policies are met. The audit suggested that better data collection and analysis would enable decision-makers to refine strategies and improve infrastructure efficiency.
Importance of public awareness and participation
In the audit, SAI Latvia also highlighted that public awareness and participation are crucial factors in ensuring the success of waste management infrastructure. Without clear communication and incentives for proper sorting, infrastructure investment risks being underutilized. Public surveys conducted during the audit revealed that nearly 40% of residents were unaware of the proper procedures for sorting biodegradable waste. In some cases, even where appropriate infrastructure was available, it was not utilised due to a lack of understanding of its use by the population.
Recommendations from the audit included increasing efforts to educate the public, improving transparency in how municipalities manage biodegradable waste, and developing strategies to encourage higher participation rates. The report highlighted a successful case in one municipality where an extensive public awareness campaign, combined with financial incentives for households participating in sorting programs, increased waste separation rates by 60% within two years.
Moving forward: strengthening waste management infrastructure
The findings of the audit underscore the need for improved planning, investment and oversight in biodegradable waste infrastructure. Timely investments, better regulatory frameworks and enhanced data monitoring would help optimize waste management processes and contribute to environmental sustainability.
A key recommendation from the audit was the establishment of a national digital monitoring system that would track waste collection and processing in real time. Such a system would provide policymakers with accurate data on waste flows, enabling them to adjust policies dynamically and address inefficiencies. In addition, the audit recommended improved financial oversight mechanisms be introduced to ensure that allocated funds are spent effectively and that waste processing infrastructure projects are completed within the set deadlines.
Latvia’s experience demonstrates the importance of ensuring that infrastructure investments align with national objectives and deliver tangible benefits to society. The audit findings serve as a reminder that public funds must be used efficiently and that, without proper oversight and planning, even well-intended infrastructure investments may fail to achieve their intended impact. By addressing these challenges, public authorities in Latvia can strengthen the waste management system in the country and contribute to a more sustainable future.
