Soft drinks industry urges EU to establish legal framework for efficient DRS amid collection concerns

07 Oct 2021 --- Natural Mineral Waters Europe (NMWE), UNESDA Soft Drinks Europe (UNESDA) and Zero Waste Europe are urging the EU to develop a legal framework for setting up an efficient Deposit Return System (DRS) for beverage packaging. The organizations see a well-functioning DRS as crucial to the industry’s circular economy goals.

The EU Circular Economy Action Plan requires all packaging to be reusable and recyclable by 2030. Moreover, the EU’s Single Use Plastics Directive (SUPD) imposes a 90% collection rate for plastic beverage bottles by 2029 and a minimum of 25% recycled plastic in PET bottles from 2025, rising to 30% from 2030 in all beverage bottles.

The organizations would like to see the EU establish minimum requirements for a new DRS in the EU Packaging and Packaging Waste Directive’s upcoming revision. They also reiterate their commitment to collaborating with policymakers and local stakeholders to implement efficient industry-wide collection schemes across the EU.

“DRS has 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 single clean stream,” explains Patricia Fosselard, NMWE’s secretary general.

“They can also contribute toward the EU’s climate objectives, for example, by reducing the need for virgin materials thanks to closed-loop recycling. However, despite 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.”

PackagingInsights discusses the critical elements of an efficient DRS and the issue of recycled PET (rPET) supply shortages with Fosselard.The EU SUPD stipulates a 90% collection rate for plastic beverage bottles by 2029.

DRS efficiency unraveled
DRS efficiency rests on many factors, says Fosselard. She highlights some of the most important considerations.

“The scope, in terms of formats (up to 3 L) and packaging materials should be as wide as possible, taking into account local circumstances.”

“On the governance side, beverage producers should set up and run the system, as they are the obligated party funding the Extended Producer Responsibility (EPR) schemes. The structure should be not-for-profit, reporting on its operations in a transparent manner and subject to audits.”

“The design of the system should be such that unredeemed deposits and sales of the materials ‘stay in the system,’ so they are used to reduce the costs of running the system, not for non-related external purposes. There should also be efficient anti-fraud mechanisms.”

Incentivizing consumers
Fosselard adds that funds should be allocated to education campaigns to reinforce that when collected, beverage packaging is a resource, not waste, and that by disposing of their packaging properly, consumers play an important role toward its recycling.

“On the consumers’ side, we need convenience, clarity and incentivization. It should be easy for consumers to return their packaging, meaning retailers should be under a take-back obligation, subject to space constraints,” she outlines.Currently, rPET demand is outstripping supply, but only beverage producers face mandatory recycled content targets.

“Also, consumers should be informed of the deposit fee amount separately from the product price. Finally, the deposit amount should be such that it fosters a ‘bring-back’ culture.”

EU collection targets at risk
Nicholas Hodac, UNESDA’s director general, warns EU Member States are unlikely to achieve the EU collection targets based on current collection performances, intensifying the urgent need for efficient DRS.

“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 SUPD, but also as an opportunity to create a closed-loop recycling system guaranteeing the material is returned and recycled in new beverage containers.”

In July, NMWE, the European Fruit Juice Association and UNESDA Soft Drinks Europe called on the European Commission to provide the non-alcoholic beverage industry with “priority access” – or a similar mechanism guaranteeing “right of first refusal” – to rPET in the revision of the Packaging and Packaging Waste Directive amid concerns of material downcycling.

“We are in contact with the EU institutions to consider how this [priority access] can be included in the revision,” Fosselard tells PackagingInsights. “The matter is very serious for the beverage industry.”

“Currently, there is more demand for rPET than there is available on the market, while beverage producers are the only operators in the EU to be under mandatory targets for packaging collection and rPET uptake.”DRS’ format scope (up to 3 L) should be as wide as possible, advises Patricia Fosselard, NMWE’s secretary general.

“Beverage producers use recyclable packaging materials and pay local EPR schemes for each packaging item they put on the market – it is only fair they can access recycled bottles to comply with legal obligations and fulfill their ambitions to close the loop on all their packaging.”

DRS’ statistical success
Fosselard reiterates that a well-functioning DRS has a pivotal role to play in meeting these legal obligations. Statistics show DRS for beverage packaging achieves collection rates generally above 90%. Meanwhile, the EU average is 59% collection for all waste management systems, including the high-performing DRS in Germany, she highlights.

“In a DRS, beverage packaging is collected in a clean stream, meaning the recycled material is food-grade quality, usable over and over again in a closed-loop.”

“DRS also has the benefit of preventing litter, which was the main objective behind the adoption of the EU SUPD,” continues Fosselard.

“Setting up [minimum DRS requirements] at EU level could help ensure 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,” adds Joan Marc Simon, director of Zero Waste Europe.

“With a swift adoption of those minimum requirements, we are confident we can move faster toward meeting both circular economy and climate objectives.”

By Joshua Poole