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It’s time to acknowledge the role of Deposit Refund Systems (DRS) in achieving a Circular Economy for beverage packaging in the EU

 

Natural Mineral Waters Europe (NMWE), UNESDA Soft Drinks Europe and Zero Waste Europe call on the EU to facilitate the beverage industry’s transition to circularity by developing a legal framework for setting up new efficient DRS for beverage packaging.

Natural Mineral Waters Europe (NMWE), UNESDA Soft Drinks Europe and Zero Waste Europe (ZWE) urge the EU to acknowledge the role of Deposit Refund Systems1 (DRS) and support the establishment of minimum requirements for new DRS in the revision of the EU Packaging and Packaging Waste Directive. They also reiterate their full commitment to collaborate with policymakers and local stakeholders in the implementation of efficient industry-wide collection schemes across the EU.

Accelerating the transition to a circular economy, as set out in the EU Circular Economy Action Plan, is a collective objective and DRS are part of the solution to contribute to it and achieve the target to make all packaging reusable and recyclable by 2030. In addition, the EU’s Single Use Plastics Directive imposes a 90% collection rate for plastic beverage bottles by 2029 and a minimum of 25% recycled plastic in PET bottles from 2025 (30% from 2030 in all beverage bottles).

‘’Given current collection performances across the EU, many EU Member States are unlikely to achieve the EU collection targets. This is why we support well-designed DRS as one of the most efficient options for meeting the collection and recycled content targets set in the EU’s Single Use Plastics Directive but also as an opportunity to create a closed-loop recycling system guaranteeing the material is returned and recycled in new beverage containers”, says Nicholas Hodac, UNESDA’s Director General.

DRS have not only delivered high collection rates for beverage packaging in countries where they are in place, but they also have the benefit of providing high-quality food-grade recycled material in a clean single stream. They can also contribute towards the EU’s climate objectives, for example by reducing the need for virgin materials thanks to closed loop recycling. However, in spite of their excellent track record, the EU Packaging and Packaging Waste legislation does not currently address DRS in any way, nor does it secure closed loop recycling for food-grade materials”, continues Patricia Fosselard, NMWE’s Secretary General.

The European Commission can play a crucial role in filling this gap by developing minimum requirements to assist EU Member States to provide a strong framework for the establishment of efficient new DRS.

Such minimum requirements should build on those for Extended Producer Responsibility schemes laid down in the Waste Framework Directive. Setting up this guidance at EU level could help ensure that DRS infrastructure across Member States also accommodates where possible, from the outset, refillable packaging, in line with the EU goals on packaging waste prevention and reuse. With a swift adoption of those minimum requirements, we are confident that we can move faster towards meeting both circular economy and climate objectives”, says Joan Marc Simon, Director of Zero Waste Europe.

NMWE, UNESDA Soft Drinks Europe and Zero Waste Europe believe that any new Deposit Refund System should be established along some basic principles with respect to geographical and material scope, governance, consumer convenience and incentivisation, and producers’ access to recycled materials.

 

Note to Editors

1 A Deposit Refund System is a collection scheme whereby consumers pay a small amount of money (deposit fee) for their packaging at the point of purchase and are reimbursed upon the return of the empty packaging to specific collection points.

Annex – Key principles for setting up efficient new Deposit Refund Systems for beverage packaging

Material scope:
– DRS should include relevant beverage packaging types and sizes (up to three litres).
– New DRS should accommodate refillable beverage packaging, where possible from the outset.

Return Rates:
– DRS should be designed to achieve at least 90% return rates for each packaging material.

Governance:
– DRS should be set up and run by the obliged industry in a not-for-profit structure as a Central Deposit Management Organisation (CDMO) and be subject to a transparent, reporting and verification system.
– Retailers play a critical role in the redemption process and therefore should join the governance of the CDMO to ensure optimised implementation and management of DRS.
– Domestic legislation should be developed to clearly outline elements such as the obligations on producers, the take-back obligations of retailers, the powers of the CDMO, and Government measures to minimise fraud should be enacted.

System Design:
– The DRS system should be set up with cost efficiency as one of the key principles.
– Revenues, such as unredeemed deposits, should stay in the system to cover both setup and operational costs.
– Costs and revenues should be allocated back to specific materials, and cross-subsidisation of materials is avoided.
– Consumer education and awareness campaigns should be included in the costs of the system.
– Each country’s CDMO shall define the variable levels of deposit by taking into account the local context and incentivising a “bring back” culture.
– All participants in the system should collaborate for the most optimal and cost-efficient implementation and be fairly compensated for the net costs incurred from dealing with the logistics of the system.

Redemption Points:
– The redemption system, both in store and out of home, should be convenient for consumers, it should also be effective and efficient, including exploring digital technology options where relevant.- Retailers should be mandated to take back all deposited packaging materials on the market, subject
to possible space limitations for small operators.
– Where reverse vending machines or other DRS reverse technology is used, minimum technical requirements should be defined and followed by the CDMO.

Access to recycled materials:
– Beverage producers, as obliged industry, should be given a fair and legitimate access to recycled materials which are captured by DRS, including via a “priority access” or “right of first refusal” for food grade recycled content.

 

For further information, please contact:

Anna Meusburger, Senior Communications Manager, Natural Mineral Waters Europe (NMWE)

T: +32 (0)493 18 32 97

anna.meusburger@nmwe.org

 

Inês Rebelo, Communications Manager, UNESDA Soft Drinks Europe

M: +32 477 860 901

irebelo@unesda.eu

 

Berta Corredor, Press Officer, Zero Waste Europe

M: +32 471 965 593

berta@zerowasteeurope.eu

 

Download Press Release in PDF

Current water challenges

We cannot deny the current water challenges our world is facing. We are experiencing increased water scarcity, with demands for safe, usable water exceeding supply in many areas, including in Europe. 

  • Freshwater use has been growing by about 1% per year since the 1980s and as water demand is expected to continue increasing at a similar rate until 2050, this will account for an increase of 20 to 30% above the current level of water use1.
  • This increase in water demand is leading to a reduction of renewable water resources of 24% per capita in Europe2
  • Around 30% of the European population lives in areas with permanent water stress and up to 70% live in areas with seasonal water stress during summer3.
  • Europe’s aquatic ecosystems are severely degraded: only 17% of protected river, lake, alluvial, and riparian habitats are in good conservation status and 90% of protected wetland habitats are classified as poor or bad4.
  • Globally, 85% of wetlands have been lost in the last 300 years, with more than 50% lost since 19905. This is particularly critical as wetlands play an important role in filtering water and removing pollutants, as well as providing shelter to wildlife and capturing carbon.

 

This situation entails severe risks for the world’s population. 

  • For the last decade, the World Economic Forum has placed water-related risks among the world’s top five in its annual Global Risks Report. 
  • Water-related disasters have also dominated the list of disasters over the past 50 years and account for 70% of all deaths related to natural disasters6.
  • Nearly 95% of infrastructure loss and damage reported between 2010 to 2019 were due to water-related disasters7
  • More frequent and intensive flooding has cost lives and livelihoods across Europe, while at the same time, more than 50% of the continent has, in recent years, been affected by extreme drought conditions, which also breed a range of negative social, economic and human outcomes8.

A situation driven by a combination of factors

The deterioration of the natural water cycle stems from a confluence of factors: growing urbanisation, growing populations, increased consumption, poor management, pollution, lack of or damaged infrastructure, and climate change.  

Agriculture was responsible for 59% of total freshwater use in Europe in 20179, while industrial and domestic uses are the main drivers of increasing water demand. Indeed, as economies industrialise, populations urbanise and water supply and sanitation systems expand. 

Additionally, rising temperatures and more extreme weather patterns are causing more droughts and flooding. Climate variability is also bringing more uncertainty as to the availability, predictability and geographical distribution of water. Water and climate change are inextricably linked. From unpredictable rainfall patterns to shrinking ice sheets, rising sea levels, floods and droughts – most impacts of climate change come down to water (UN Water).