Prioritise progress on a deposit return scheme to start delivering on the Green Prosperity Plan
Deposit Return Schemes (DRS) are one of the rarest of policy ideas. They’re simple, cost-neutral for consumers, demonstrably effective, and enjoy broad cross-party and industry support.
Consumers pay a small deposit on their plastic drinks bottles and cans, which is then refunded when they return the container for recycling. DRSs are proven to increase recycling rates, reduce littering, and help create a circular economy which benefits the environment and local communities.
Despite the first steps towards a DRS being taken in 2017, the United Kingdom continues to delay and is limiting the progress that can be made towards improving our recycling rate for plastic packaging, which stands at a meagre 44 per cent.1 Germany’s scheme has operated for over 30 years, and return rates for plastic drinks containers are over 98 per cent.2 Ireland successfully implemented its DRS in February 2024, which has already collected over 250m drinks containers.3
A ‘win-win’ for everybody
As one of the nation’s leading soft drinks companies, we at Suntory Beverage and Food GB&I (SBF GB&I) know we have a significant role to play in the UK’s net-zero ambition and can help build a circular economy. That is why we’re committed to ensuring all our plastic bottles across all our brands are 100 per cent sustainable by 2030 at the latest. In fact, Ribena and Lucozade Sport bottles are already made of 100 per cent rPET (recycled polyethylene terephthalate – a recycled plastic).
However, we’re held back from making faster progress towards these joint aims due to a poor supply of high-quality rPET, caused by low collection rates and underinvestment in recycling infrastructure. Delivering a functioning DRS would directly tackle these challenges, helping to reduce our need for virgin PET4 and lowering our carbon emissions.
After years of delay, the new Labour government has an unprecedented opportunity within its first 100 days to take crucial steps to deliver a DRS in the UK. In doing so, they’ll help drive higher recycling rates and green investment, and create jobs.
Put simply, DRS is a win-win for everybody.
The draft DRS regulations are ready to be laid and are supported by industry and environmental groups. They also have cross-party support and should require very little parliamentary time to approve.
If the Labour government lays the regulations in the coming month, SBF GB&I and others in our industry will be able to deliver a DRS by October 2027.
The opportunities for government
A DRS is an easy first step on Labour’s zero-waste roadmap, which would ensure the UK builds a strong circular economy.
- Ready to go: The draft regulations are ready to go and could be laid from the end of July. This lays the groundwork so SBF GB&I and others in industry can then ensure that the UK has an operational DRS by October 2027.
- Green investment and economic growth: Unlocking over £1bn in private green investment,5 a DRS will be crucial for supporting Labour’s growth mission through the Green Prosperity Plan.
- Job creation: We can expect a DRS to help create thousands of new jobs6 to support the delivery of the scheme, boosting employment in green industries.
- Tried and tested success: Across Europe, countries that establish a DRS see significant increases in return rates of plastic drinks containers. Denmark has a 93 per cent return rate; Finland has 96 per cent; and Norway has 92 per cent.7
Delivering an efficient and effective scheme
The new Labour government can deliver a successful DRS by seeking inspiration from the recent success in Ireland.
Ahead of the scheme’s February 2024 go-live date, the Irish government worked closely with industry to appoint a scheme administrator in a timely manner. As a result, we were able to deliver an effective DRS that consumers understand and are already adapting to.
Ireland’s DRS was designed with clear and simple principles. It was well-defined and had a single set of rules, which were easy to understand and implement.
That is why, as a business with drinks sold in every corner of the UK, we stress the importance of interoperability across the four UK nations. This means creating one UK-wide scheme with a single set of materials, deposit levels and scheme administrator.
Delivering a circular economy together
We are reassured by the government’s commitment to delivering a zero-waste roadmap and circular economy. We at SBF GB&I are ready to do our bit to support this ambition.
We hope that the Labour government will move swiftly to lay the DRS regulations that will enable us, together with government and others in industry, to establish an efficient UK-wide DRS that will unlock investment, create jobs, and boost recycling across the country.
1. https://www.gov.uk/government/statistics/uk-waste-data/uk-statistics-on-waste#packaging-waste
2. https://www.reloopplatform.org/wp-content/uploads/2023/05/RELOOP_Factsheet_Performance_May2024_Web.pdf
3. https://re-turn.ie/90-million-drinks-containers-returned-in-june-as-ireland-averages-three-million-bottles-and-cans-per-day/
4. Virgin PET: polyethylene terephthalate that is derived from fossil fuels and does not contain any recycled materials.
5. https://consult.defra.gov.uk/environment/consultation-on-introducing-a-drs/supporting_documents/Impact%20Assessment.pdf
6. https://www.cpre.org.uk/wp-content/uploads/2019/11/from_waste_to_work.pdf
7. https://www.reloopplatform.org/wp-content/uploads/2023/05/RELOOP_Factsheet_Performance_May2024_Web.pdf
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