Decarbonization of an economy: creating economic prerequisites through the development of the waste recycling accounting at landfills

Abstract

Reforming the methodology of waste accounting to decarbonize the environment is an ecological innovation in information support. Reformation allows organizations to understand their environmental responsibility, economic benefits from involving waste in re-production. The purpose of this study is a theoretical justification and development of accounting methodology for municipal waste operating in unequipped landfills. To get the purpose, the article presents the economic essence of “organic municipal waste”. The natural transformation of organic municipal waste into a biogas in the landfill body requires the allocation of two new accounting objects: “biomass of municipal waste” and “biogas reserves”. The article suggests an interconnected methodology for accounting for “biomass of municipal waste” as a secondary resource, and “biogas reserves” as renewable natural capital reflecting the economic potential of the landfill. The presented methodology will provide users with information about: the contribution of organic waste to reproduction; the energy value of the landfill and its economic potential; consumption of renewable natural capital; reduction of greenhouse gas emissions. The developed recommendations regarding the accounting of municipal waste in organizations operating unequipped landfills increase the information content, which is important for making management decisions, attracting investments, aimed at the disposal of carbon gases.