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Deposit Return Schemes (DRS) across the UK

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Presentation on theme: "Deposit Return Schemes (DRS) across the UK"— Presentation transcript:

1 Deposit Return Schemes (DRS) across the UK
British Soft Drinks Association Lewis van Diggele

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3 How DRS functions

4 DRS proposed across UK, but separately
Northern Ireland N.I. officials co-consulted with Defra (17 February – 13 May 2019) Not certain that they will implement with England (2023), or at all (Scope etc., as per England) Scotland Expectation of a full scale ‘Nordic style’ DRS for cans, PET and glass Legislation expected to be finalised by end 2019, with scheme to be up and running by end 2020 (before May 2021 Scottish elections) Scheme design announced 8 May Consultation (2018) complete; responses published 21 February 2019 Wales Welsh Government co-consulted with Defra (17 February – 13 May 2019) Not certain that they will implement with England (2023), or at all (Scope etc., as per England) England Anticipated implementation 2023 Unclear whether full scale (‘all-in’) or ‘on the go’ Materials in scope unclear – full range being considered Consultation ran 17 February - 13 May 2019)

5 BSDA support for well-designed DRS
BSDA undertook detailed modelling work to inform policy position and principles for DRS “BSDA supports the introduction of a GB-wide full DRS for all plastic and can beverage containers as our assessment suggests this is the best way to increase recycling levels and tackle litter.” DRS principles: Legislation and framework regulations should simply require industry to operate a system (and place obligation on all producers and retailers in scope) Scheme should be operated/run by industry (producers and retailers) DMO responsible for increasing return rate - (i.e. to 85% and above), which takes time to achieve as a result of consumer behaviour change DMO of the DRS should be owned jointly by industry (producers and retailers) - a not-for-profit company Membership of OpCo should the relevant trade associations, not individual companies. - Board of DMO comprising representatives of relevant sectors DRS should fit with reform of the current producer responsibility and compliance systems - vital that packaging in DRS is not subject to other obligations, including PRN and plastics tax Support full-scale DRS for all PET and metal (can) beverage containers of all sizes - do not support the ‘on-the-go idea’ for simply gathering bottles/cans bought and consumed outside the home Do not think glass should be included - health and safety issues, cost, negative impact on current recycling of glass Do not think milk / milk based drinks should be included – hygiene and retailer considerations Should cover all retail sectors, but with some exemptions - not all running collection points GB-wide Want consistent system across GB. Separate systems would undermine success and viability. Full DRS Support a full-scale, industry-wide operation, based on the well-designed Nordic schemes. All beverage containers sold (not just those consumed ‘on-the-go’) This will drive recycling and reduce litter and ensure workable scheme (for consumers and OpCo), and improve the quality of collected materials consumed by households Plastic and cans Should be limited to key materials (start simple!) - PET bottles and cans can be collected together Adding glass, pouches, cartons or cups will increase the cost and complexity of the scheme and damage the quality of the more valuable materials. Recycling All our containers are 100% recyclable. We support increasing rates from ~70% to ~85%+ Cans, bottles (glass and plastic) and cartons are all recyclable and can be turned back into soft drinks packaging or made into other useful products. reduce the burden on virgin materials. Litter Sector has always taken recycling, littering and the environment very seriously.

6 DRS Scotland-England timeline
August 2019: Draft regulations expected Early 2020: Parliamentary approval of regulations March 2020: 12-month notice given to industry May 2021: Scot. Govt intended deadline for DRS ‘DRS timing gap’ 2019 2020 2021 2022 2023 August 2019: UK Govt. response to consultation Autumn 2019: Govt. Draft Environment Bill published Early 2022: 12-month notice given to industry January 2023: Proposed introduction of DRS in England, Wales and N.I. Early 2020: Second DRS consultation(s) expected

7 DRS among wider green policy changes
Supportive as PRN system has long needed reform, but high costs need careful consideration. Drinks producers should be able to fulfil obligations for primary packaging via DRS, and not be double-charged. Defra: Extended Producer Responsibility for packaging [UK ] Supportive of measures to bring consistency to collections, improve recycling quality and make it easy for consumers to do the right thing. How such changes are funded needs careful consideration. Defra: Consistency in household/business waste collections [England ] Proposals and timing (2022) do not fit with DRS or EPR reform plans – therefore hard to achieve changes in time. HM Treasury: Plastic Tax (30%) [UK ]

8 SKU / labelling changes Ongoing involvement in scheme
What DRS means for producers ‘Doing the right thing’ - taking further action to reduce litter and increase recycling collection Fulfilment of extended producer responsibility Supports aims of industry to move towards circular model for packaging Increased availability of high-quality recyclate; reduced burden on virgin materials Producer costs SKU / labelling changes Ongoing involvement in scheme SET UP AND DRS SYSTEM RUNNING COSTS SUPPLY CHAIN COSTS COMMERCIAL IMPACT (LOST SALES)

9 What to do Engage with industry associations
Respond to government; get involved with consultation and implementation processes Prepare your teams; model business impact and there changes required – start now!

10 Questions Lewis van Diggele Public Affairs Manager
Public Affairs Manager @BritSoftDrinks


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