Tag: Circularity Scotland

SUNK: Deposit Return Scheme delayed until October 2025 at the earliest

‘These delays and dilutions lie squarely in the hands of UK Government that has sadly seemed so far more intent on sabotaging this parliament than protecting our environment’ – LORNA SLATER, Circular Economy Minister

The launch of Scotland’s Deposit Return Scheme will be delayed until at least October 2025 as a consequence of the UK Government’s refusal to agree a full exclusion from the Internal Market Act, Circular Economy Minister Lorna Slater has told Parliament.

Last week the UK Government imposed a number of highly significant conditions on the scheme, including the removal of glass and the requirement to align aspects of the scheme with schemes across the UK – none of which exist at the moment or have regulations in place.

Following consultations with key businesses including producers, Ministers have concluded that certainty on critical elements of the scheme cannot be provided to businesses until the UK Government publishes more detail and therefore Scotland’s deposit return scheme will not go live until October 2025 at the earliest.

Addressing Parliament yesterday, Circular Economy Minister Lorna Slater said: “As of today, it is now clear that we have been left with no other option than to delay the launch of Scotland’s DRS, until October 2025 at the earliest based on the UK Government’s current stated aspirations.

“I remain committed to interoperable DRS schemes across the UK provided that we can work in a spirit of collaboration not imposition.  I wrote again last night to the UK Government, to urge ministers to reset a climate of trust and good faith to galvanise and retain the knowledge that has been built in Circularity Scotland and DRS partners in Scotland.

“This Parliament voted for a Deposit Return Scheme. I am committed to a Deposit Return Scheme. Scotland will have a Deposit Return Scheme. It will come later than need be. It will be more limited than it should be. More limited than Parliament voted for.

“These delays and dilutions lie squarely in the hands of UK Government that has sadly seemed so far more intent on sabotaging this parliament than protecting our environment.”

The Scottish Beer & Pub Association has welcomed the decision to delay:

BACKGROUND

The Scottish Parliament legislated to create a deposit return scheme including glass in May 2020. The Internal Market Act was passed in December 2020.

Of the 51 territories and countries operating deposit return schemes, 45 include glass.

Following correspondence from the First Minister to the Prime Minister, the UK Government confirmed on 5 June it would not reconsider the conditions attached to the Internal Market Act exclusion.

The First Minister and Circular Economy Minister met with businesses on 7 June to discuss the implications of the UK Government’s decision.

The conditions for an exclusion include a maximum cap on deposit levels agreed across all nations, one administration fee to cover all schemes across the UK, one barcode for use across all parts of the UK and one logo for all schemes.

Drinks producers urged to register for deposit return scheme

First Minister calls on businesses to sign up

The First Minister has encouraged drinks producers to register for Scotland’s deposit return scheme, which will go live on 16 August 2023.

Drinks producers are asked to register with the scheme administrator, Circularity Scotland, in order to participate in the recycling scheme and to help ensure that they meet their regulatory requirements.

The scheme is expected to cut littering by a third, reducing the amount spent by local authorities on litter clean up, and will increase recycling rates of single-use drinks containers from the current rate of approximately 50% towards 90%.

The First Minister has also written today to the UK Prime Minister, reiterating that the UK Government must exclude the deposit return scheme regulations from the Internal Market Act. The Scottish Government first requested an exclusion in July 2021.

The First Minister said: “Scotland’s deposit return scheme will be a major part of our efforts to reduce litter, cut emissions and build a greener, more circular economy. Good progress is being made by industry ahead of the scheme’s introduction on 16 August, and I am aware of the significant private investment that has already been made by many businesses to be ready for the scheme, and the many jobs that are being created to operate it.

“I would strongly encourage drinks producers to register with the scheme administrator, Circularity Scotland. This is a vital step to ensuring everyone who needs to be is compliant with the regulations and is the best way to make sure that their products can be sold without issue in Scotland.

“I also want to reassure drinks producers with concerns about the impact of the scheme. SEPA has made clear that they will take a proportionate approach to compliance. They will work with businesses to help them get ready – advice and guidance, not fines, will be the first step for any business that is clearly taking action but struggling to meet their obligations.

“The Scottish Government will continue to listen to the concerns of small producers and will consider if there is any further action we can take to support them ahead of the scheme going live.”

Deposit Return Scheme support ‘should end delay calls’

Circularity Scotland has today (21st February 2023) announced £22 million of cashflow support measures to help Scotland’s brewers, distillers, importers and drinks manufacturers prepare for the introduction of Scotland’s deposit return scheme.

The package includes:

  • Up front charges removed for lower sales volumes
  • Improved payment terms for lower sales volumes
  • Simple labelling option for niche products, alleviating administrative burden

The support package is particularly designed to help SMEs, who have previously voiced concerns about the impact of the scheme on their business’ cashflow.

To address these concerns, Circularity Scotland is removing the day one and month one charges for all producers, up to a threshold of three million units per year. It is also providing two month credit terms on deposits and fees up to the same volume threshold to reduce the working capital impact on all producers.

The three million unit threshold has been established to ensure that the thousands of smaller scale producers selling in Scotland benefit more proportionately from the cashflow support. This will particularly help companies like craft brewers, wine importers and craft spirit producers. The two month credit terms will be made available to all producers, regardless of their size, ensuring all producers within the scheme are treated equally.

Circularity Scotland has also confirmed that it will be offering the option to use self-adhesive barcode labels for producers placing less than 25,000 units per year of a specific product on to the Scottish market. This will provide a simple and straightforward administrative solution for independent producers and importers for whom the cost of changing packaging to introduce new barcodes could be prohibitive.

David Harris, Chief Executive of Circularity Scotland said: “Circularity Scotland was established by industry to meet their obligations under the deposit return scheme as efficiently and cost-effectively as possible.

“This announcement is further evidence of how we are continuing to innovate and identify additional ways to mitigate the pressure on businesses. We know that smaller producers in particular have been concerned about the cashflow impacts of the scheme, and these measures will address those concerns.

“Circularity Scotland has successfully secured over £100m of third-party funding to establish the infrastructure of the deposit return scheme, with only minimal up-front funding from the very largest producers. This funding approach allows producers both large and small to benefit on equal terms from this investment in world-class infrastructure and leading-edge technology and only pay their share of the costs once the scheme is in operation.

We have already announced reductions in producer fees of up to 40%, while also being able to offer the highest return handling fees of comparable schemes anywhere in the world. These additional support measures further demonstrate our confidence in being able to deliver ongoing operational efficiencies once the scheme has gone live. We are committed to ensuring that the deposit return scheme works for Scotland, is cost effective for business and helps protect our environment for generations to come.”

Circular Economy Minister Lorna Slater said: “This is a big and welcome change that responds directly to many of the concerns that have been raised, particularly those from smaller producers like craft brewers.

“It addresses initial cash flow challenges, and provides a pragmatic and simple solution to the issues raised around barcodes for smaller product lines. This is a package that gives businesses the clarity and confidence they need to be part of Scotland’s deposit return scheme.

“Over the last few months I have been meeting industry regularly to listen to their feedback and this industry-led solution has been designed in direct response to its concerns. I remain committed to a pragmatic approach to implementation between now and the 16 August.

“By working together we can lead the UK in delivering a deposit return scheme which will increase Scotland’s recycling rates from around 50% to 90%, cut emissions, tackle littering and address public concerns about the impact of plastic and other waste.”

Businesses looking for more information on these measures or how they can register for the scheme should contact Circularity Scotland’s customer support team at www.circularityscotland.com or on 0141 401 0899.

Campaigners have welcomed the news that small businesses will be supported to launch Scotland’s deposit return scheme on time this year in August 2023.

Kim Pratt, circular economy campaigner at Friends of the Earth Scotland, said: “The announcement today demonstrates commitment from Circularity Scotland and the businesses they represent to start the scheme on time in August 2023, and we’re pleased to see that support is being given to smaller businesses to address their concerns.

“This announcement should end calls for further delays. To undo the building momentum for the scheme would be counterproductive for producers and retailers planning for an August introduction, as well as risking further environmental pollution from discarded drinks containers.

“It is fundamental to the long-term success of the scheme that the costs of Scotland’s  Deposit Return Scheme come from industry. Part of the purpose of a scheme like this is to make sure the responsibility for cleaning up is held by the companies that are producing the waste, rather than from the public purse, as is currently the case.”

‘Baffled’: Still another year until Scotland’s deposit return scheme

Recycling initiative will help deliver a circular economy

Scotland’s deposit return scheme will go live for consumers on this day in one year’s time (16 August 2023), giving businesses and consumers an easy way to boost recycling – but campaigners are concerned the initiative is falling behind.

The scheme, which will be the first in the UK, will play an important part in Scotland’s journey to a circular economy. Estimates by Zero Waste Scotland suggest that the scheme will reduce emissions by an average of nearly 160,000 tonnes of carbon dioxide a year – the equivalent of 109,000 return flights from Edinburgh to New York.

The 20p deposit will also provide an incentive to reduce littering, helping to cut the number of bottles and cans discarded in streets and green spaces.

The scheme is being delivered by Circularity Scotland Ltd., an industry-led body representing drinks producers, retailers and trade bodies of all sizes. This business-led approach is common among many of the most successful schemes in Europe, include Denmark, Finland, and The Netherlands.

Infrastructure for the scheme is now beginning to be rolled out across Scotland, and businesses of all sizes are being encouraged to act now to make sure they are ready for the scheme launching this time next year.  

Businesses can register with Circularity Scotland, to make sure they receive information that will help them prepare.

The Scottish Environment Protection Agency (SEPA), who are the regulator for the scheme, has also launched a campaign that will help businesses understand their legal responsibilities and the steps they need to take to prepare.

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Circular Economy Minister Lorna Slater said: “Scotland is leading the way in the UK on delivering a circular economy. By putting in place a deposit return scheme, we are delivering on the public’s desire to see action on plastic and other waste, and making an important contribution to the response to the climate emergency.

“With thousands of return points across the country, it will be as easy to return your empty bottle or can as it was to buy it in the first place. This will help to nearly double recycling rates for the containers included in the scheme, while reducing the amount of litter on our streets and cutting CO2 emissions.

“This scheme is being delivered by industry for industry. By putting businesses in charge, we are making sure that it works for them. With one year to go until the scheme goes live for consumers, I would encourage all businesses and organisations that produce, ship or sell drinks to get involved with the scheme now.”

After delaying its introduction twice, the Scottish Government published a set of milestones to deliver a high-quality scheme next year. However, with significant delays to the first milestone being met earlier this year and no sign yet of a public awareness campaign as promised, campaigners are concerned that this timetable may be slipping.

Kim Pratt, circular economy campaigner at Friends of the Earth Scotland said: “We must change the way we use materials to drastically reduce the impact of our consumption.

“Across Europe, deposit return schemes are well established, successful and popular. They have a direct impact on the climate by reducing the need for new materials, and they help reduce plastic pollution at the same time.

“We’re concerned that the Scottish Government is falling behind with implementation of this important scheme. The public awareness campaign is a crucial part of roll out and must be delivered on time. It’s vital that there are no further delays to Scotland’s deposit return scheme so that we can begin to see the benefits.”

John Mayhew, Director of APRS, which is running the Have You Got The Bottle? campaign, said: “Across Europe and beyond, more and more countries are getting on board with deposit return. Places like Latvia, Malta and Slovakia have introduced their systems at a pace which makes it all the more baffling that Scotland’s launch date is still a year away.

“Deposits will eventually bring major benefits to Scotland in terms of reduced litter, lower emissions, and cost savings for local government, but it is concerning for the rest of the circular economy agenda that such a simple step has proved so difficult for the government to implement here.”

Scotland’s material consumption accounts for 82% of our entire carbon footprint. Each tonne of plastic recycled saves 0.5 tonnes of carbon, recycling a tonne of metal saves 2.5 tonnes of carbon and recycling a tonne of glass saves 0.75 tonnes of carbon.

The Scottish Government has published a delivery plan for the system but has acknowledged that challenges still remain. The complexities of a VAT charge have yet to be agreed with HM Treasury. The scheme administrator, Circularity Scotland, is organised and run by the private sector, which has limited transparency.