This newsletter was originally published in July 2023
In each issue, Bottle Bill Common Ground will explain a single principle or practice for a meaningful, modern DRS. We will cover topics such as ease of use for consumers, production standards for industry, and compliance and enforcement measures for government.
By following this roadmap, states can achieve major environmental and economic benefits
This issue of Bottle Bill Common Ground moves from 10 high-performance principles to 10 essential practices for a modern bottle bill
Practice #1: Meaningful targets and penalties
Meaningful targets and penalties drive performance and outcomes to make a modern DRS work.
A minimum deposit of 10 cents and a redemption target of 90% stimulate consumer, producer, and government engagement and investment. Penalties and government enforcement would be
meaningful, so producers view compliance as more cost-effective than
non-compliance
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A Guide to Modern Deposit Return Systems: 10 Essential Practices
10 key requirements for successful implementation of a DRS to serve as a roadmap for policymakers, advocates, and producers seeking the best public policy solutions.
Setting clear targets for a DRS through legislation helps define common goals for producers, retailers, and regulators. Equally important is establishing adequate enforcement and meaningful penalties if targets are not met. Any system not backed by rigorous enforcement risks missing key targets and encouraging inappropriate behaviour (wait for Practice 4: Oversight & Enforcement to learn more). The right mix incentivises producers and system operators to maintain high performance in order to avoid penalties.
Meaningful targets provide performance benchmarks to help measure the public policy impact and assess the effectiveness or efficiency of the DRS at local and state-wide levels. Research consistently shows that a 90% collection target is attainable when bottle bill legislation and rules are the guide to build a properly designed system. High-performing DRSs in countries like Germany and Norway regularly achieve a 90% collection target, which inspires the system to maximise waste prevention and litter reduction and facilitate high levels of closed-loop recycling.
In addition to a 90% collection rate, DRS legislation should require beverage producers and/or DRS operators to meet specific targets in the following areas:
- Recycling rate (material-specific and overall)
- Beverage packaging material
- Public awareness/satisfaction
- Minimum post-consumer recycled content
- Geographical coverage (i.e., minimum number of return points per person, maximum distance to return point)
Systems don’t improve overnight. DRS legislation needs to be rigorous but realistic, and allow performance expectations to gradually increase over time. The mandated collection target could, for example, increase by 5% annually until the maximum target of 90% is reached. When producers and DRS operators know targets will become progressively more ambitious, they can plan and make the necessary investments in infrastructure and innovation.
At a minimum, enforcement procedures and penalties need to be clearly stated in statute and regulations, along with the government agency responsible for enforcing them. Penalties are most effective when there is a clear connection between the expectations outlined in the targets and a direct line of responsibility back to a specific party. They must also be set high enough to ensure that the cost of compliance remains more economically attractive than the cost of non-compliance.
Case Study: Quebec
Quebec’s new DRS regulations will begin to be implemented in November 2023. They prescribe the following annual recovery rate targets for 2030:
- Single-use metal containers: 85%
- Single-use plastic containers: 80%
- Single-use containers made of glass: 80%
- Single-use fibre containers, including multi-layer containers: 70%
- Single-use biobased containers: 80%
- Reusable containers made of glass: 90%
- Reusable containers made of any material other than glass: 80
- All containers: 85%
To drive continuous improvement, the regulations also stipulate that:
- Starting in 2030, and every two years thereafter, recovery rates will be increased by 5% until they reach 90%
- A minimum of 50% of containers must be recycled in a closed-loop fashion
- By 2026, 80% of glass, aluminium, and plastic must be recycled locally
- The same is required by 2028 for multi-layered and biobased containers
Quebec’s new regulations also prescribe clear monetary penalties to be imposed on various stakeholders who fail to meet legislated requirements:
$10,000 to $1,000,000 and $30,000 to $6,000,000 for other infractions by producers or their PRO.
$2,000 to $10,000 for producers who fail to mark a barcode on redeemable containers
$4,000 to $250,000 and $12,000 to $1,500,000 if retailers fail to comply with distance requirements that ensure access and equity for return sites
$8,000 to $500,000 and $24,000 to $3,000,000 for producers or Producer Responsibility Organisations (PROs) who fail to meet requirements
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Issue #10:
Government oversight and enforcement
Issue #12:
Point of return
