World Bank Group Report Shows How Digital Tools Can Help Cities Cut Waste Costs, Improve Services, and Build Circular Economies

WASHINGTON, May 27, 2026, Municipalities and waste management companies can use digital tools to improve service reliability, reduce operating costs, strengthen recycling systems, and make better investment decisions, according to a new World Bank Group report, Waste, Reimagined: Practical Guidance for Digitalizing Waste Management.

Why it matters: Waste systems are under growing pressure. Global municipal solid waste is expected to rise by 50 percent by 2050, from 2.6 billion tonnes in 2022 to 3.9 billion tonnes. In lower-income countries, waste volumes are expected to more than double, and in some regions triple. The cost of inaction is already estimated at $361 billion annually in health and environmental impacts from uncollected waste, open dumping, and burning.

The big picture: The report shows that digitalization is not only about technology. It is about using better data to make waste systems more reliable, transparent, and financially sustainable.

Digital tools can help cities and operators:

• Optimize collection routes and reduce fuel use.
• Improve billing and fee collection.
• Track service delivery in real time.
• Increase citizen participation in recycling.
• Improve sorting, recovery, and material quality.
• Support circular economy goals through better transparency and traceability.

By the numbers: Case studies from different regions show that digital tools can deliver measurable results.

In Cambodia, Battambang used digital billing, mobile payments, and GPS tracking to improve waste collection. Service coverage increased from about 40 percent of households to 75 to 80 percent, helping the city improve reliability and revenue collection.

In the Republic of Korea, Seoul used RFID-based food waste charging and tested IoT smart bins. Food waste recycling rose from about 2 percent in the 1990s to around 98 percent by 2023. The smart bins pilot helped reduce collection frequency by 66 percent and lower collection costs by 83 percent.

In Tunisia, route analytics and telematics in Cité el Habib, Sfax helped reduce fuel use by up to 57 percent and collection time by up to 29 to 48 percent.

In Benin, Cotonou used GPS tracking for collection vehicles to improve route compliance and reduce missed pickups. The system supported a roughly 9 percent increase in annual waste collection, from 430,000 tonnes to 470,000 tonnes, while reducing landfill trips by about 500.

In Spain, Barcelona shows how long-term digital investment can modernize complex urban waste systems. Integrated platforms, RFID-enabled smart bins, pneumatic collection, and performance-based contracts have strengthened service monitoring, contractor oversight, and operational efficiency. Solar-powered self-compacting bins reduced emptying costs by eight times compared with traditional bins.

What’s new: The report provides practical guidance for municipalities and waste companies on how to select and implement digital tools. It focuses on four areas:

1. Citizen and business engagement, including apps, messaging tools, incentives, and feedback systems.
2. Collection and logistics, including GPS tracking, route optimization, telematics, and smart bins.
3. Treatment and facility management, including AI sorting, sensors, real-time reporting, and predictive maintenance.
4. Digital platforms and marketplaces, including billing systems, traceability tools, and secondary-material trading platforms.

The bottom line: Digital waste solutions can offer low-cost, high-impact returns when they are linked to broader reforms. The report finds that successful digitalization depends on clear governance, strong data management, phased implementation, staff capacity, and sustained engagement with citizens and businesses.

About the report:
Waste, Reimagined: Practical Guidance for Digitalizing Waste Management was developed by the IFC, a member of the World Bank Group, and Eunomia Research and Consulting, with support from the governments of Korea, Japan, and Switzerland.