Deposit Return Schemes
Scotland goes live with a deposit return scheme on drinks containers in 2022, and the rest of the UK consulting to follow in 2024. Here's how it works and what it means for Consumers, Producers and Retailers.
Key Statistics
- UK Government estimates 14bn PET bottles, 5bn Glass Bottles and 9bn cans a year are sold into the UK drinks market
- It is believed that current recycling rates are c. 70-75% across the packaging types covered by this scheme, largely via curbside recovery and sorting of general waste.
- DEFRA impact assessment is that the scheme will cost c. £204m to set up and c.£814m a year to run. It predicts economic benefit s of £1,903m first year (IEA report 2019)
- The UK has c. 41,000 convenience stores, 8,400 forecourts, 10,400 grocers and 13,500 traditional/specialist stores (The Grocer 2017). The UK is also estimated to have c.210,000 licensed premises.
- Scotland have already approved new laws for a 20p Deposit Return Scheme to begin July 2022 with legally binding recycling targets of 70% by 2023, 80% by 2024 and 90% by 2025
- The rest of the UK has finished consultation but as yet no legislation or recycling targets. Currently targeting introduction 2023 and may differ to Scottish Scheme
- EU target is to have 77% by weight recycled by 2025, and 90% by 2029. As the UK leaves the EU it is not held to that target, but may still be the aspiration for the rest of the UK.
*Demonstrates the most likely structure of the Scotland scheme. Producers are not obliged to use a scheme administrator to act on their behalf, but could put schemes in place to collect their own containers.
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DRS Producer and Retailer info
The Scottish Parliament has already approved legislation for a Deposit Return Scheme for Scotland which is set to go live in July 2022. The rest of the UK is under consultation, but no legislation has yet been introduced. It is anticipated to be live in 2023, and may differ from Scotland.
The Scottish law definition of a producer is: "in the case of a scheme article branded in the United Kingdom, the brand owner, in the case of a scheme article branded by a brand owner outside the United Kingdom, the importer." So effectively, if you introduce products into the Scottish market, it must carry a deposit.
The Scottish law definition of a retailer: " For the purposes of these Regulations, a “retailer” is a person who markets, offers for sale or sells a scheme article to a consumer in Scotland " . In essence if you sell a product in Scotland you are obliged to take it back (with some exceptions).
The Scottish legislation also has provisions for internet sale into Scotland
More information for producers, importers, retailer and hospitality venues is below.
Producers
Producers
Producers
A producer MUST*:
- Be registered as a producer
- Put 20p on each qualifying container
- Collect scheme packaging from return point operators, retailers operating a takeback service and hospitality retailers and return the deposit
- Pay a “reasonable” handling fee to return point operators, retailers and hospitality retailers which can include capital cost of equipment, staffing, leasing of space, administration and other costs. (What is reasonable my depend on point of view).
- Provide appropriate reporting to the relevant authority to prove they are meeting scheme requirements
- Meet the minimum recycling targets set by the government or face fines
In the Scottish scheme, the producer(s) may appoint a scheme administrator to act on their behalf. This administrator would be expected to be a not for profit, and whilst the law allows for any number of scheme administrators it seems likely that the drinks industry will coalesce around relatively few to increase efficiency and keep costs down.
For more detail on the scheme already approved for Scotland, please follow this link:
https://depositreturnscheme.zerowastescotland.org.uk/information-producers
*Scottish deposit return scheme. rUK scheme not yet finalised.
Retailers
Producers
Producers
A retailer MUST*:
- Operate a deposit return point at any retail premises in Scotland in which a container covered by the scheme is marketed, offered for sale or sold by that retailer,
- Clearly display information about how a deposit can be redeemed.
Exceptions*:
- Export shops
- Where the sale of a qualifying container on those premises is solely by way of a vending machine
- Where the sale of a qualifying on those premises is solely by way of a distance retail sale (in which case there are other obligations),
- A hospitality retailer that does not sell any scheme articles for consumption off premise (who therefore effectively collects all of their own containers)
For more detail on the scheme already approved for Scotland, please follow this link:
https://depositreturnscheme.zerowastescotland.org.uk/information-retailers
*Scottish deposit return scheme. rUK scheme not yet finalised.