“Unfeasible for several reasons”: Speculations rife over another UK DRS delay

16 Apr 2024 --- The UK government might further postpone the implementation of its long-delayed deposit return scheme (DRS). Although no official announcement has been made, reports suggest that the start date could be pushed to 2028, sparking concerns and discussions among stakeholders.

Rumors and speculation have swirled since February regarding disagreements between the UK’s four national governments over the inclusion of glass in the scheme. According to sources, it has emerged as a primary stumbling block contributing to the delay.

In response to Packaging Insights’ inquiries, a spokesperson for the UK government’s Department for Environment, Food & Rural Affairs (Defra) stresses commitment to waste reduction and resource optimization initiatives.

“We are pushing ahead with our program of reforms to reduce waste and improve our use of resources, and remain committed to our goal of eliminating avoidable waste by 2050,” says the spokesperson.

“It is essential that we work closely with the industry to make sure our reforms will be a success, and we will continue to take their views into account as we proceed with introducing the deposit return scheme.”

“Once we have completed negotiations with the Devolved Administrations we will proceed to lay the necessary regulations,” the UK government spokesperson reiterates.

Lack of policy progress
UK Environment Secretary Steven Barclay reportedly conveyed to Defra that a 2025 deadline for implementation is not realistic, refraining from committing to a specific timeframe.

Nadiya Catel-Arutyunova, sustainability policy advisor at the British Retail Consortium, shares with Packaging Insights that the consortium welcomes the acknowledgment of the impracticality of a 2025 start date.

Defra says it is “pushing ahead” with UK program of reforms to reduce waste and improve use of resources.“The retail industry has been long calling for a realistic timeline for a DRS in the UK, where the scheme is only introduced after the packaging EPR reforms.”

“Retailers will need at least 24 months to implement the second-biggest DRS scheme in Europe, but a 2027 start date will only be feasible if government engages with the industry, makes sure all details are fully ironed out, and ensures that the scheme is aligned across the Devolved nations,” says Catel-Arutyunova.

Furthermore, Patrick Brighty, head of recycling policy at the Environmental Services Association (ESA), echoes concerns about the challenges of meeting the proposed timeline and emphasizes the need for Parliamentary approval, establishment of a Deposit Management Organisation (DMO), and extensive consultation with stakeholders to facilitate the rollout of the DRS.

“Irrespective of recent reports of a delay to the DRS timetable, implementing a DRS by October 2025 is increasingly challenging owing to a lack of policy progress, at least publicly, since January 2023,” says Brighty.

“Before the DRS can be rolled out, the statutory instrument must be laid in Parliament to confirm the scope and appointment of a DMO, and to ascertain the final form of the DRS — for example whether it relies on a return-to-retail model or a ‘full-fat’ scheme with more complex infrastructure requirements.”

“Once the DMO is in place, they will then need to establish producer fees and payments (which will require extensive consultation in itself), and tender for service providers both on the front-end logistics, sorting and counting, but also on the back-end reprocessing of materials.”

Brighty stresses that delivering a DRS by October 2025 would be a “tall order” even if the DMO was appointed tomorrow, “so any further hold-up makes delivery against this target increasingly unlikely.”

Legislative and logistical hurdles
Robbie Staniforth, innovation and policy director at Ecosurety, expresses skepticism regarding the feasibility of implementing the scheme by October 2025, highlighting legislative hurdles and logistical challenges.

“While reports of a delay are unconfirmed, what we do know is that implementation of a new scheme in October 2025 is totally unfeasible at this point for several reasons,” he tells us. Brighty, at ESA, stresses that delivering a DRS by October 2025 would be a “tall order.”

“Legislation is yet to be laid, never mind passed, in England, Wales and Northern Ireland. Without legislation, a deposit management organization to oversee operations cannot be created or appointed.”

Furthermore, given the collapse of the deposit management organization in Scotland, where legislation has been passed, “there are no obvious candidates to take on the role, nor a clear pathway to establishing such an organization,” says Staniforth.

“Implementation of a UK-wide DRS is no small undertaking. Until legislation is passed, and credible timelines published, all discussions are academic at this stage. Given the UK election looming on the horizon, there is likely to be further change ahead.”

Furthermore, he stresses the need for credible timelines and clear pathways for execution.

“It is very difficult for businesses to plan or act on this basis. Therefore, their operational efforts are better focused on more certain areas of packaging legislation, namely extended producer responsibility.”

“The number of businesses reporting their data under the new requirements remains low. Their attention is better served in understanding and reporting the plethora of packaging placed onto the UK market and how recyclable or reusable it is,” says Staniforth.

Waste reduction goals and hurdles
Amid uncertainties and complexities, the UK government faces mounting pressure to address logistical and regulatory hurdles to realize its vision for waste reduction and sustainable resource management.

UK waste management company Biffa is reportedly considering legal action amounting to £100 million (US$126.6 million) in response to the Scottish government’s failed implementation of a DRS.

Meanwhile, as the launch date for a DRS in the UK is reportedly delayed further until 2028, Polytag and DDRS Alliance have pledged to work collaboratively and leverage their experience to demonstrate the viability and convenience of a digital DRS.

By Radhika Sikaria

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