Christmas cheer for the Deposit Return Scheme, but challenges await in the New Year

Fraser McIntosh, Head of External Affairs and Sustainability | Suntory Beverage & Food GB&I

4 min read11 December 2024 Partner content

Last month, the UK government brought an early festive gift by laying the regulations for the Deposit Return Scheme (DRS) in England and Northern Ireland, which is now well on course to go live in October 2027.

At SBF GB&I, makers of Lucozade and Ribena, we welcome the dedication of the Department for the Environment, Food and Rural Affairs (DEFRA) in reaching this important milestone and committing to a timeline that gives businesses crucial certainty.

Yet, decisions taken by the Welsh government mean we aren’t likely to leave 2024 totally full of cheer. The Welsh government’s announcement that it will no longer be joining a UK-wide DRS, choosing instead to pursue its own ambitions on a different timeline, risks creating complexity and confusion for supply chains and consumers.

As we enter the season of goodwill, we urge our four governments to come together, rediscover their common ground, and get us back on track to a fully interoperable DRS.

What is a DRS?

DRSs are tried and tested. They increase collection rates and the quality of recycling while reducing litter.

Consumers pay a deposit when purchasing a drink in a single-use container, such as a plastic bottle or can. This deposit is then fully refunded when they return the container to a collection point, such as a supermarket, for recycling.

DRS will stimulate a circular economy for plastic and metal drinks containers and enhance our environment, driving growth and jobs in the green economy.

Why do we need one?

The UK has low recycling rates compared to other countries in Europe. Our plastic recycling rate is just 44 per cent,¹ whereas countries with a functioning DRS see significant increases in recycling rates of in-scope containers. Denmark has a 93 per cent recycling rate, Finland has 96 per cent, and Norway has 92 per cent.² We know that these systems work.

We have a live example from Ireland. Its DRS launched earlier this year and has already collected over 750 million containers³ – now consistently seeing over three million containers returned every day.⁴ Not only that, but it also has led to a significant reduction in littering of plastic bottles and cans, which are included in the scheme.⁵

Driving up recycling rates is critical to our route to net-zero. Indeed, SBF GB&I’s aim is for our plastic bottles to be 100 per cent sustainable by 2030 at the latest. We’ve already incorporated 100 per cent recycled PET (rPET) into our Ribena and Lucozade Sport bottles, but a DRS will supercharge our ability to do more.

Since 2017, the UK government has been working to establish a DRS, but the process has been mired by repeated setbacks due to political disagreement and misalignment.

Let’s make 2025 a year of breakthroughs

With the DRS regulations laid for England and Northern Ireland, and Scotland’s amendments imminent, we have never been closer to making a DRS a reality.

But the Welsh government’s decision shows we can’t be complacent. It creates misalignment, complexity and risk, which we fear will result in trade and supply chain complications, as well as confusion for consumers.

In remarks covered by this outlet last week,⁶ the Prime Minister reiterated how small businesses need “stability” and “certainty”. This is a principle that applies to businesses of all sizes, and while DEFRA’s commitment to the existing DRS timeline has provided some certainty, the Welsh government’s decision has done the opposite.

At the very least, if there are to be separate schemes, they must be fully interoperable, with one material scope and aligned deposit levels. This would ensure consistency, minimise complexity and reduce the risk of fraud, making a scheme work for shoppers, stores and producers alike.

We urge UK parliamentarians to help provide some Christmas cheer by encouraging their Welsh government colleagues to get back around the table and resolve this latest challenge. If we can come together with a ‘one-UK’ spirit, we can ensure that 2025 is a year of progress towards a circular economy across the entire country.

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