Assessment Of Financial Risks In Waste –To-Wealth Projects

In line with an eco-modern ethos, the philosophy of waste-to-wealth presents an alternative approach to sustainability whereby it encapsulates waste materials and turns them into useful products such as energy, biofuels, compost, and recyclable materials.Potentially, waste-to-wealth (W2W) initiatives may serve as a cause of environmental and economic transformation, although, in reality, these projects face various financial risks.These include uncertainties of initial investment, market condition fluctuations, regulatory barriers, and assurance trials of smooth-going fund guarantee.The paper exploits means such as sensitivity analysis, Monte Carlo, and Real Options Analysis to identify and assess the said financial risks.Subsequently, the study shines a spotlight on the existing risk management gaps that could be remedied, such as through revenue diversification, government incentives, risk-sharing arrangements, and advanced financial planning.This, in turn, enlightens all relevant stakeholders involved in the W2W program, from investors to policymakers, with feasible economic approaches that would support the sustenance of W2W projects.