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The Penang Organic Waste Policy seeks to encourage the separation and treatment of organic waste at the source in order to divert such waste away from the landfill, and thus prolonge the landfill's lifespan and reduce municipal costs. Because of the greenhouse gases that organic landfilled waste produces (carbon dioxide and methane, mainly), this policy is also part of Penang’s local action towards a global commitment to mitigate the effects of global warming and climate change.
It is with these objectives and targets in mind that the Output-based Program to Incentivize Solid Waste Separation is designed to help achieve.