Showing posts with label DRS. Show all posts
Showing posts with label DRS. Show all posts

Sunday, September 11, 2022

Deposit refund schemes (DRS)




Most people feel helpless. As if they have no control over their life. In truth, you have more control over that world than you think. It has been said that luck is what happens when opportunity meets preparedness. 


Imagine two men walking down the street on a windy day. A piece of paper blows along the sidewalk in front of one man, then the other. The first man ignores the litter, keeping his eyes on the block up ahead. The second man peers at the scrap realize it’s a $20 bill and picks it up. Is that person luckier?

No. The same opportunity crossed the path of both men, but only one of them was prepared to act. I'm not saying that you should dig through the trash and look at the floor, but... 





This is how people in Croatia improve their budget and help recycle at the same time.

The Deposit Refund System in Croatia started with its implementation in 2006 and the decision was driven by increasing quantities of packaging waste since the 1990s as a result of the rising use of non-refillable beverage packaging: PET, bottles, and cans. The system foresees that a deposit is established for one-way beverage containers of greater volume than 0.2l made of plastic (PET), metal (aluminum and iron), and glass containing alcoholic and non-alcoholic beverages, water, fruit juices, and soft drinks. Milk and milk-containing beverages are subject to an exception and are excluded from the system. A returnable fee of 0.50 HRK (0,06€) is to be applied per packaging unit regardless of the material and size. The take-back process is established in each retail store (automatically by reverse vending machines or manually) where beverages packaged in aluminum, iron, PET, or glass are sold to end consumers with the exception of small retailers (which have less than 200m2).





Learning by example

A container deposit scheme in South Australia which applies an AUD 0.10 refundable deposit to beverage containers has led to a three-fold reduction in the number of beverage containers becoming litter on beaches.

In 2001, Israel introduced a deposit refund law that applies a deposit of ILS 0.25 to glass and plastic containers smaller than 1.5 liters. A cost-benefit analysis in 2010 concluded that the law had had a positive impact, with total benefits exceeding total costs by around 35%, and potentially greater benefits if the scheme were also applied to larger bottles.

In Ecuador, a refundable USD 0.02 deposit paid per PET beverage bottle (in 2011) led to a significant increase in PET bottle recycling, increasing from 30% in 2011 to 80% in 2012, when 1.13 million of the 1.4 million PET bottles produced were recycled.

The USA has no federal legislation on bottle refund schemes, but several States have introduced ‘bottle bills’. The California Redemption Value (CRV) is USD 0.05 for containers smaller than 0.7 liters and USD 0.10 for larger containers. Since its introduction in 1987, it is estimated that 300 billion aluminum, glass, and plastic beverage containers have been recycled.


In the US, the weight of a can fluctuates with various brand designs, but they tend to be around a half-ounce per can. At an average of 59 cents per pound, that makes a single can worth about 1.8 cents. At that rate, you could make $20 for about 1,000 cans (or 84 12-packs of 12-ounce cans). 





Measuring success – and looking for ways to improve

Zeljko Serdar, CEO, and founder of CCRES comments: “By working on the DRS system, we utilize our know-how in the field of digital transformation of waste management. It is very motivating for us to participate in a project with such a positive impact on recycling. When it comes to financial matters, it’s important to keep your eyes and ears open and to know where you are. Only then will you spot the opportunity when it crosses your path. Sometimes we all just need a little help opening our eyes."