Tag Archives: Deposit Return Schemes

Lessons from Norway: Deposit Return Scheme

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by Scott Faulds

Last year, following the screening of the BBC’s Blue Planet II, the issue of single-use plastic and its effect on the ecosystem rose to the forefront of the public’s mind. Research conducted by Waitrose & Partners found that 88% of people who watched Blue Planet have now changed the way they use plastics, with 60% of viewers now likely to use a refillable water bottle. The “blue planet effect” has even influenced the work of various legislatures, with the introduction of new laws designed to ban single-use plastic in the Scottish Government, UK Government and European Commission. Additionally, both the Scottish and UK Governments have been looking into ways to reduce use of single-use plastics through the introduction of what is known as a deposit return scheme (DRS).

What is a deposit return scheme?

The basis of a DRS is relatively simple: when you purchase a drink in a single-use container you pay a nominal fee as a deposit. On returning the container you receive your deposit back. The Scottish Government have recently announced that they have set the deposit for their scheme at 20p. DRSs have been successfully operating across the world for several years and are particularly common in the Nordic countries, where container return rates are between 88% to 96%. However, whilst the basis of the DRS is often the same, each country has a different set of operating criteria that determines which single-use containers can participate in the scheme, the level of deposit and the places where people can return their single-use containers.

The Norwegian Model

The most effective DRS in the world can be found in Norway, colloquially known as “panting”, which has been in operation since the early 2000s. 97% of all plastic drink bottles are returned and less than 1% of all plastic bottles sold in Norway end up in the environment. Most impressively, it is estimated that 92% of all plastic bottles returned are recycled back into plastic bottles, with the chief executive of Infinitum (the private, not-for-profit, operator of the DRS owned by retailers and producers) estimating that some bottles have already been recycled more than fifty times.

Within the Norwegian model, the legislation underpinning the scheme is a single page, with the industry owned body Infinitum entrusted to decide how best to operate the DRS. Infinitum is incentivized to make the scheme as efficient as possible due to an environmental tax placed on all producers of plastic bottles, which is lifted if 95% of all single-use containers are returned.

The Norwegian scheme accepts all polyethylene terephthalate (PET) and aluminium containers if packaging has been designed in line with Infinitum’s guidelines, which ensures that all containers entering the scheme are able to be easily recycled. These guidelines are fundamental to ensure the circular nature of the scheme. For example, it is critical that labels attached to bottles are easily removed without leaving any residue which could inhibit their ability to be recycled.  The level of deposit charged varies, with all aluminium and small PET containers set at 2kr (17p) and large (500ml+) PET containers at 3kr (26p). All retailers that sell beverages eligible for the scheme are required to act as a collection point, either via reverse vending machines or as a manual collection point. Additionally, it is also possible for schools/charities to act as manual collection points, which enables them to collect additional revenue. Reverse vending machines also feature an option for the deposit to be donated to the Norwegian Red Cross.

In short, the design of the Norwegian DRS has largely been left in the hands of the industry itself, who are incentivised to ensure it operates effectively in order to receive a tax reduction. This has enabled the creation of a truly circular system where everything from the design of the packaging itself to how containers are collected has been meticulously planned. The statistics speak for themselves:  with 97% of all plastic drink containers returned and 92% of these containers then re-purposed into new containers, it is fair to say that Norway’s DRS is world leading.

Lessons to Learn

With both the Scottish and UK governments at various stages in their development of a DRS, there are some lessons to be learned from the successful scheme operated in Norway.

Both governments could look at how best to ensure industry engagement when implementing their DRSs. Encouraging citizens to recycle more is unquestionably a good thing for a responsible government to do. However, containers returned can only be recycled if industry is engaged and able to make appropriate changes to their containers to ensure they are as recyclable as possible when returned.

Additionally, it will be important to ensure that there is enough infrastructure in place to allow people to return their single-use containers. This will be of particular significance to more rural areas of the country. Both governments could consider how Norway dealt with this issue, where any business which sells items eligible for the DRS must also act as a collection point. Furthermore, both governments could consider if it is viable to enable schools and charities to act as manual collection points, allowing citizens to donate their deposit to worthy causes. This will provide citizens with options in how they wish to make use of their deposit whilst also providing additional collection infrastructure.

Final Thoughts

In conclusion, it is evident that Norway operates the most effective DRS in the world, with over 95% of all plastic and aluminium containers recycled via the scheme. Both the Scottish and UK governments would be wise to look at what lessons can be learned from Norway when designing DRSs which will help to tackle the climate emergency. As shown by the experience of Norway, the most effective DRSs are more than just recycling, they are entire system changes.

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Further reading from The Knowledge Exchange blog on recycling and climate change:

Could deposit return schemes turn the tide of plastic pollution?

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For decades, plastic has been regarded as something of a miracle product. Lightweight, durable and versatile, it’s been used for practically everything, from food packaging and water pipes to aircraft and insulation systems.

But all of a sudden it seems that plastic has become public enemy number one.  In January, the Iceland supermarket chain announced plans to eliminate or drastically reduce plastic packaging of all its own-label products by the end of 2023. Also in January, the UK government set out its ambition to eliminate all avoidable plastic waste within 25 years.

A rising tide

The new war on plastic is largely to do with an increased awareness about the highly damaging impact of plastic waste on the planet. Research has found that, since the 1950s, nine billion tonnes of plastic has been produced, a figure that’s likely to rise to 30 billion tonnes by the end of the century. Over eight million tonnes of plastic enter the oceans each year, threatening marine and bird life, as well as having a wider impact on human health.

The difficulty of disposing of plastic waste has been amplified by China’s decision last summer to ban the import of 24 categories of recyclable materials, including most plastics. The news was a body blow to the waste management sector, which has relied on China’s dominant position in recycling to dispose of plastic waste.

Tackling the problem, one bottle at a time

More recently, the focus has been on single use plastic bottles for water and other soft drinks. The House of Commons Environmental Audit Committee last year reported that 13 billion plastic bottles are used each year in the UK. Only 57% of these are recycled, with the rest going to landfill/incineration or litter.

Various solutions have been suggested to reduce plastic bottle waste, such as greater provision of public drinking fountains and bottle refill points.

Another idea is the development of deposit return schemes (DRS). These involve consumers paying a small deposit on top of the price of a bottled drink. The deposit is refunded when the bottle is returned to an in-store collection point or a reverse vending machine. The bottles are then collected and recycled into new plastic bottles.

A 2015 study by Eunomia for Zero Waste Scotland considered the feasibility of a DRS being introduced to Scotland. The research included case studies of deposit return schemes in Germany and Scandinavia. In Germany, the introduction of the deposit on one-way beverage packaging was a big success with 98.5% of refillable bottles being returned by consumers. And in Norway, 96% of bottles are returned for plastic recycling.

The Eunomia study concluded that none of the challenges posed by introducing a DRS to Scotland was insuperable, and in September 2017, First Minister Nicola Sturgeon announced plans for a Scottish DRS. Shortly afterwards, the Commons Environmental Audit Committee recommended the introduction of a DRS in England, arguing that it would recycle more plastic bottles, save money and create jobs in the long run.

Deposit return schemes – pros and cons

Writing in the January 2018 ENDS Report, Dominic Hogg, chairman of Eunomia, described four benefits of DRS:

  • The return rates can be high, and the climate change benefits associated with recycling the materials are correspondingly higher;
  • Because materials returned are of a high level of purity, they are sought after by reprocessors;
  • Because they now have meaningful value, the rate of littering of used beverage containers falls by about 95%
  • A DRS would reduce the prevalence of plastic found in the marine environment.

However, some local authorities have expressed concern that they would lose money as people would use the DRS rather than recycle through local authorities’ kerbside systems.

Reservations have also been voiced by the soft drinks sector. AG Barr believes that “…the scope for fraud in a Scottish DRS is huge. On a small scale we could see people scavenging in bins for containers, as is the US experience. On a medium scale there is the potential for local authority amenity centre looting. And on a larger scale there is the very real possibility of cross-border trafficking of deposit-bearing containers.”

However, having previously opposed DRS, one major soft drinks company has undergone a change of heart. “A well-designed DRS, targeting the littering of on-the-go soft drinks, could have a role to play alongside reforms and improvements for the current systems,” said Nick Brown, head of sustainability at Coca-Cola European Partners.

A future role for plastic

While there is a growing recognition of the need to manage plastic waste, there’s also an understanding that plastic can’t simply be uninvented.

WRAP (the Waste and Resources Action Programme), which promotes sustainable waste management, has recognised the value of plastic as a resource:

“Take health care, for example. Most disposable medical items – insulin pens, IV tubes, inhalation masks, and so on – use plastic as a core component because it is sterile and reduces the risk of infection. Plastic packaging preserves and protects food. According to the US Flexible Packaging Association (FPA), plastic film extends the shelf life of a cucumber from three days to 14.”

Even so, it’s clear that we’ve reached a watershed moment concerning DRS. As Dominic Hogg concludes:

“Policymakers should make it clear that this is going to happen. The naysayers can choose either to be part of the solution’s design or to have it imposed upon them.”

If you found this blog post interesting, you might also like to read some of our previous articles on waste management: