> REGIONAL

INITIATIVE

for Inclusive Recycling

Multilateral Investment Fund Member of the IDB Group

VIVIENDO

POSITIVAMENTE

1.

OUR STARTING POINT

2.

BUILDING A SHARED REGIONAL VISION

CONTENTS>>

3.

CORE STRATEGIES

4.

GOVERNANCE STRUCTURE

.2

1.
OUR STARTING POINT

OUR STARTING POINT

COLLAPSE OF A PARADIGM
` Four million people earn a living by waste picking on streets and in dumps ` Seen as a social problem, work not valued or recognized ` Looming global waste crisis and environmental concerns ` Lack of market information, transparency and standard regulations / policies

UNTAPPED OPPORTUNITIES
` Green markets opportunities with payment for environmental services ` Entrepreneurial opportunities and growing professionalization of recycler organizations ` Growing private demand for designing waste management solutions ` Increasing demand among municipalities for knowledge support in integral waste management

system solutions

.44 .

OUR STARTING POINT

CRITICAL MASS OF ACTORS INTERESTED IN COLLABORATION

` FOMIN: U$4.8M since 2008 in Argentina, Bolivia, Brazil, Colombia, and Peru ` IDB - Water & Sanitation Division: U$400,000 since 2009 in Brazil and Colombia ` AVINA: U$4.5 M since 2003 with strategy in 15 countries ` The Coca-Cola Company: U$1.0M in support to Cata Aao in Brazil ` Support of the Bill & Melinda Gates Foundation: Global Urban Poverty strategy, partnership to strengthen

the Latin American Network of Waste Pickers

RESULTS TO DATE
` Strengthened, professionalized recycler organizations (6 national movements and growth of the Latin American

Network of Waste Pickers in 14 countries)

` Mobilized social capital (multi-sector - AVINA and IDB allies) ` Progress in legal framework and public policies (Argentina, Brazil, Peru) ` Increased corporate engagement and business development (alliances with The Coca-Cola Company, PepsiCo,

Danone, Natura)
` Greater awareness and recognition of inclusive recycling (2010 UN Environmental Program (UNEP) report

highlights Brazil as a world leader in recycling)

.55 .

PARTNERS CONTRIBUTION TO THE INITIATIVE

MIF (including counterpart from projects) IDB INE/WSA (AquaFund)

Fundacin

AVINA

The Coca-Cola Company TOTAL

US$4,000,000 US$1,000,000 US$1,400,000 US$2,000,000 US$8,400,000

.66 .

2.
BUILDING A SHARED REGIONAL VISION

BUILDING A SHARED REGIONAL VISION

1. IMPROVED SOCIOECONOMIC SITUATION FOR RECYCLERS AND FAMILIES

A paradigm shift away from waste picker as social problem to waste picker as social and economic asset
` Recycler becomes a formal, legally recognized occupation, and in the mid to long term, has a skills

certification system to standardize the competencies of this occupation

2. ENHANCED PRIVATE SECTOR ROLE AND INTEGRATION IN THE VALUE CHAIN

Large consumer products companies integrate recyclers organizations into the value chain ` Large multinationals have regional policies for traceability of recycled raw materials ` Recyclers enterprises thrive in a competitive market ` Private sector solutions for the base of the pyramid

3. IMPACT ON PUBLIC POLICY

Inclusive public service/waste management systems ` Recycling becomes part of cities public services systems ` Waste picker organizations are included in the recycling/waste management system ` It ensures compliance with rules and laws that ensure the full conditions of human dignity, such as source separation of household waste

.8

3.
CORE STRATEGIES

CORE STRATEGIES

BASED ON FOUR KEY CORE STRATEGIES:

1. 2. 3. 4.

FINANCING PROJECTS AROUND CONCRETE OPPORTUNITIES FOR IMPACT INCREASING STAKEHOLDER CAPACITY AND COLLABORATION IN THE RECYCLING MARKET

STRENGTHENING KNOWLEDGE AND LEARNING

COMMUNICATING STRATEGICALLY WITH KEY AUDIENCES

.10

1. FINANCING PROJEC TS

OBJECTIVE
Support the transfer of successful models of economic inclusion to other countries in the region through the development and financing of concrete initiatives among core partners.

CONTRIBUTION TO SHARED REGIONAL VISION

Active projects (Brazil, Peru, Bolivia, Argentina, Colombia) have provided key lessons which, if effectively transferred, can accelerate processes of change in new countries.

EXPECTED 4-YEAR RESULTS:

` 4-6 projects financed and under implementation by the Initiative ` New solutions in: access to basic services for recyclers, recycling processes or products, financing

mechanisms related to climate change, and methodologies for carbon credits developed through these projects

.11

1. FINANCING PROJEC TS

ACTIVITIES PLANNED IN ORDER TO ACHIEVE THIS OBJECTIVE ACTIVITIES PLANNED IN ORDER TO ACHIEVE THIS OBJECTIVE ` Conduct a study to identify best practices and business models to be systematized and transferred
` Conduct a study to identify best practices and business models to be systematized and transferred companies Be proactive and strategic in identifying new projects. Organize awareness raising meetings with ` and other key stakeholders about the Initiative ` Be proactive and strategic in identifying new projects. Organize awareness raising meetings with companies ` and other key projects with the following axes: Develop new stakeholders about the Initiative ` Develop new projects with the following axes:

Knowledge transfers Knowledge transfers New product development New product development Recycling process innovation Recycling process innovation New entrepreneurial opportunities using byproducts, etc. New entrepreneurial opportunities using byproducts, etc. Carbon credits (voluntary market and/or UNFCCC) Carbon credits (voluntary market and/or UNFCCC)

.12

EXISTING RECYCLING PROJECTS

COLOMBIA
Executing Agency Asociacin de Recicladores de Bogot Partners AVINA, PepsiCo, IDB, IAF Total Amount

BRAZIL
Executing Agency Fundacin AVINA Partners The Coca-Cola Foundation, IDB, ICCO, MDS Total Amount

US$1,908,028
Expected Results Commercialization network operating with 7 of the 22 participating organizations At least 9 organizations report enhanced economic activity and income

US$ 7.9M
Expected Results Economic inclusion, improved livelihoods of recyclers in 5 communities; 1500 families Solid relationships developed in recycling value chain

ARGENTINA
Executing Agency Fundacin AVINA Argentina

PERU
Executing Agency Ciudad Saludable Partners PepsiCo Total Amount

BOLIVIA
Executing Agency Fundacin para la Participacin Ciudadana y Alivio a la Pobreza Total Amount

Partners PepsiCo, Fundacin Roman Total Amount

US$ 1,110,500
Expected Results 16 existing recycler organizations strengthened 16 organizations included in recycling chain of large companies; 300 families beneted

US$1,132,355
Expected Results 2,000 informal recyclers formalized and organized, improving income and work conditions 15 large companies active in separation at origin programs

US$779,148
Expected Results At least 300 recyclers organized and trained 3 new recycler organizations legally formed

.13

2. STAKEHOLDER CAPACITY AND COLLABORATION

OBJECTIVE
Significantly increase the capacity and collaboration among participating actors.

CONTRIBUTION TO SHARED REGIONAL VISION

A more inclusive recycling market will require greater capacity, awareness, trust and partnership among all actors.

EXPECTED 4-YEAR RESULTS:

` At least 4 projects outside the Initiative benefit from knowledge services ` At least 6 countries have received technical assistance to support regulatory reform in the area

of waste management
` At least 2,000 recyclers have had the opportunity to participate in technical training programs ` At least 60 representatives from government, recyclers, NGOs and businesses have participated

in a knowledge exchange
` At least 200 municipal representatives trained ` At least 70 institutions have signed collaboration agreements within the framework

of the Regional Initiative

.14

2. STAKEHOLDER CAPACITY AND COLLABORATION

ACTIVITIES PLANNED IN ORDER TO ACHIEVE THIS OBJECTIVE

PROMOTE EXCHANGE OF EXPERIENCES AMONG DIVERSE ACTORS AND ACROSS SECTORS AND COUNTRIES ` Technical meetings ` Field visits and exchanges DEVELOP PARTNERSHIPS WITH TRAINING PROVIDERS TO DEVELOP SPECIFIC PRODUCTS FOR: DEVELOP PARTNERSHIPS WITH TRAINING PROVIDERS TO DEVELOP SPECIFIC PRODUCTS FOR: ` Municipalities (managing sustainable waste management systems that integrate recyclers) ` Large companies (value chain, inclusive business practices and working with recycler organizations) ` Local organizations active in the sector ` Recyclers DEVELOP AA TECHNICAL ASSISTANCE FACILITY (MATCHING GRANTS) TO SUPPORT SPECIFIC CASES DEVELOP TECHNICAL ASSISTANCE FACILITY (MATCHING GRANTS) TO SUPPORT ` Policy and regulatory reform, waste management systems and reduce bottlenecks in the

recycling value chain

PROVIDE KNOWLEDGE SERVICES TO THIRD PARTY PROJECTS THAT ARE RELEVANT TO THE INITIATIVE

.15

3. KNOWLEDGE AND LEARNING

OBJECTIVE
Generate, capture and systematize knowledge from recycling projects and research to promote learning among key stakeholders and enhance impact.

CONTRIBUTION TO SHARED REGIONAL VISION

Effectively capturing and sharing experiences, business models and best practices fills in knowledge gaps among key actors, helping them to work towards the common goal of building an inclusive recycling market.

EXPECTED 4-YEAR RESULTS

` At least 15 best practices experiences systematized and disseminated ` At least 15 case studies on integrated waste management ` At least 6 business models identified, systematized and disseminated

.16

3. KNOWLEDGE AND LEARNING

ACTIVITIES PLANNED IN ORDER TO ACHIEVE THIS OBJECTIVE

` Develop a monitoring system for the Initiative with baseline indicators ` Develop an impact evaluation strategy to measure the Initiatives effectiveness ` Create an online portal for the initiative ` Systematize and package existing knowledge to identify best practices ` Online mapping of successful municipal services ` Case studies ` Project site visits ` Research gaps and trends ` Integrated waste management cases ` Business models ` Regulatory frameworks ` Sector studies (on specific recyclable materials) ` Organize regional recycling conferences

.17

4. COMMUNICATING STRATEGICALLY

Multilateral Investment Fund Member of the IDB Group

OBJECTIVE
Use communication effectively to enhance the impact of the Initiative and to proactively connect knowledge of what works with those who need it.

CONTRIBUTION TO SHARED REGIONAL VISION

Getting the right message across to the right audience is key to promoting the adoption of best practices and business models and catalyzing changes in perception and behavior.

EXPECTED 4-YEAR RESULTS

` Public perceives recyclers as economic actors who perform a valued public service, contributing

to a better society and environment

` Exit strategy developed to ensure sustainability of the Initiative after the life of the project ` Recycling mainstreamed in the industry, in households, etc.

.18

4. COMMUNICATING STRATEGICALLY

Multilateral Investment Fund Member of the IDB Group

ACTIVITIES PLANNED IN ORDER TO ACHIEVE THIS OBJECTIVE

Design communications strategy
` Identify key audiences (local, state and national governments, large companies, local organizations active

in the sector, recycler organizations, general public)

` Target messages and products to reach each audience; timeline for delivery ` Utilize technology and all media available (social networks, web 2.0, etc.)

Reach and influence key audiences

` Government (municipal and national): awareness raising about the importance of sustainable waste

management systems and dissemination of tools

` Companies: contribute to finding and disseminating solutions to improve the recycling market ` General public: promote sustainable behaviors and social inclusion

Partner with key organizations

` Broaden participation in the Initiative and create a sense of ownership ` Catalyze new approaches to recycling

.19

4. 02.
GOVERNANCE STRUCTURE AND ACHIEVEMENTS CORE STRATEGIES RESULTS

GOVERNANCE STRUCTURE

Regional Advisory Committee

(Co-investors, other partners and recyclers)

Implementation Team
(Founding partners + Manager)

NATIONAL COMMITEE
(from projects)

NATIONAL COMMITEE

NATIONAL COMMITEE

NATIONAL COMMITEE

NATIONAL COMMITEE

.21

GOVERNANCE STRUCTURE: ROLES

REGIONAL ADVISORY COMMITTEE

` Provides strategic guidance to the Implementation Team ` Plays a key role in defining program activities, including identifying potential projects and best practices ` Validates the Initiatives regional vision, strategy and annual action plan

IMPLEMENTATION TEAM, WITH INPUT FROM THE REGIONAL ADVISORY COMMITTEE

` Defines the vision, strategy and annual action plan ` Defines selection criteria and decides which projects to finance (by consensus) ` Responsible for implementation of program activities ` Defines program operating procedures

NATIONAL COMMITTEES
` Participate in and coordinate relevant national projects ` Promote local initiatives ` Mobilize key local audiences ` Share learning and best practices ` Provide input to the Regional Advisory Committee regarding activities at the national level

.22

> REGIONAL

INITIATIVE

for Inclusive Recycling

Multilateral Investment Fund Member of the IDB Group

VIVIENDO

POSITIVAMENTE