Reloop News

Reloop Published Article - Deposit Return

Why New Zealand needs a Container Deposit Scheme

This article was originally published in Grey Power Magazine on 03 September 2025

Beverage, retail and recycling companies, community groups (including Reloop) and local government in New Zealand are among those calling for a Container Deposit Scheme.

Many Kiwis remember when cashing in used drink bottles for money was the norm and were often seen as a great way to fundraise for charities, sports clubs and more.

These money-back schemes were run by drinks producers’ so that bottles were returned to them for refilling. However, when that industry started using single-use, non-refillable containers most schemes fell away, although some scrap metal recycling companies still offer a small return on collected aluminium cans.

Unfortunately, despite these can programmes and kerbside recycling, the majority of empty drink containers have become a big part of the litter stream, left on beaches, dropped in creeks and parks and even in roadside gutters. It’s been estimated drink container materials make up about 40% of the litter seen in our environment.

Currently, 57 countries and states across Europe, America, Canada. Australia, Asia and Africa have implemented fast, proven deposit return systems with more on the way.

What Australia shows: Results and community benefits

Australia now has drink deposit and refund schemes across all states; Tasmania implemented its scheme in May this year. The results have been extremely positive.

Prior to CDS starting in New South Wales and Western Australia, only about 32% of drink containers were being recycled with the remainder ending up littered or in landfills. The recovery rate has now more than doubled across the country.

But there’s been additional positive benefits from these schemes. Hundreds of small sports, art and other community groups, as well as larger charities, use these schemes to fundraise or, in some cases, to operate CDS collection businesses.

Young people use the scheme to save money for endeavours such as overseas adventures, while many in the community supplement their income with funds from redeemed collected containers.

Interestingly, in some surveys, I’ve seen parents, carers, grandparents and others work with young people to collect and redeem containers in a joint effort and to help instil ideas of resilience, reward for effort and community engagement. There are, of course, also the obvious additional principles of kids working to keep the environment clean.

The introduction of these schemes also creates new economic, business and job opportunities. Instead of being littered or landfilled, businesses are established to collect, transport and process the used containers into material for new drink containers. If implemented in New Zealand, the scheme has the potential to create hundreds of new jobs and investment in the economy.

Next steps for New Zealand

A few years ago, I was involved in one of the technical groups that helped put together a CDS scheme design for New Zealand. A fit-for-purpose CDS design is therefore ready to go and waiting for the Government to say, ‘yes’ to modernising how New Zealand handles waste and litter.

I hope this is something Kiwi businesses and groups will support – what a difference it could make in so many ways.

If any readers wish to encourage the Government to introduce a deposit-refund scheme on bottles and cans in New Zealand, please contact your local Member of Parliament and/ or write to your local paper.

Reloop and Grey Power New Zealand has recently joined a group of some 80 organisations supporting a letter to the Prime Minister and other Ministers, urging the New Zealand Government to introduce a Container Deposit Scheme.

More information on a Container Deposit Scheme (CDS), also known as a Container Return Scheme (CRS), for New Zealand can be found on the Zero Waste Aotearoa website. 


Written by:

Rob Kelman

Director, Reloop Pacific

About Rob

Rob has worked across waste and resource recovery initiatives with NGOs and business over the past 15 years. He has also supported businesses across a range of sectors, including forestry, resources and banking, to focus on their sustainability pursuits. In addition to pursuing solutions for plastics, packaging and the circular economy, Rob is also Executive Officer of the Australian Tyre Recyclers Association.

Contact info
3

Reloop Programme 3

Money Back

This news article is in line with Reloop’s programme for packaging subject to deposits or charges.

Back
to top