CDS is a product stewardship or extended producer responsibility scheme which obliges beverage suppliers to take greater responsibility for packaging after it has been sold.
It is an effective and popular means of reducing litter and encouraging community participation in recycling.
CDS requires beverage suppliers to ensure that a system is in place for the recovery and recycling of their empty beverage containers.
The CDS will to reduce litter, recover and increase the recycling rates of used containers and help engage the community in active and positive recycling behaviours.
This initiative promotes a cleaner environment in water ways, parks and roadsides.
The CDS rewards the community for avoiding littering and increasing recycling by offering a refund on the types of beverage containers often found in the litter stream.
The 2015-16 National Litter Index indicated around 25% of ACT litter by volume comprises beverage containers. The next largest proportion of litter is from take-away cups and food containers.
The CDS influences littering behaviour in two ways:
The exact commencement date is yet to be determined but is expected to be in early 2018.
The CDS is established by legislation.
The ACT Legislative Assembly passed the bill to amend the Waste Management and Resource Recovery Act 2016 on 31 October 2017.
The relevant Minister will have the power to enter into binding agreements with a Scheme Coordinator and a Network Operator who will run the ACT CDS.
The Scheme Coordinator will be responsible for managing financial and material flow data, contracts, payments, invoicing and auditing. The Scheme Coordinator is also responsible for delivery of a payment system to enable consumers to claim container refunds.
The Network Operator will be responsible for the logistical management of containers within the ACT. This includes establishing and managing a network of collection points which they can establish directly or by entering into agreements with collection point operators. Examples of collection points include depots, shop fronts and reverse vending machines.
Beverage suppliers will be required to have beverages sold in eligible containers licenced by the ACT Government, and eligible containers will be required to display the CDS symbol when they are sold.
Beverage suppliers will enter into agreements with the Scheme Coordinator to provide funding to support the operation of the CDS. This funding consists of two components; the 10 cent per container deposits and what are called handling fees. It is the handling fees that fund the various components of the CDS, including the collection point infrastructure and operations (including staff), and the payment and data collection system.
Beverage suppliers will be able to pass on the cost of container deposits and handling fees to consumers via the wholesale price to the retailer. Consumers will pay this when they purchase the beverage.
Consumers will be entitled to a 10 cent per container deposit refund when they return their containers to an approved collection point.
The containers collected at collection points will be taken to the ACT co-mingled Materials Recovery Facility (ACT MRF) at Hume to be sorted, aggregated/bundled and sold for recycling.
There are many factors that affect the retail price of beverages. It is expected that the retail price of beverages in the ACT will increase due to the CDS.
Even if the ACT did not introduce a CDS it is likely the retail price of beverages in the ACT would increase anyway due to the effect of the NSW CDS.
The ACT is working with NSW to harmonise the ACT and NSW CDS with the aim of minimising confusion to consumers and the risk of cross-border trade.
The ACT is still working with NSW on cross-border matters.
It is proposed the ACT adopts the same eligibility criteria as the NSW CDS. This means that most empty beverage containers with a volume between 150ml and 3 litres will be eligible.
The following beverage containers are excluded from the CDS:
The South Australian and Northern Territory CDSs also apply the same inclusions and exclusions but with the exception that they include containers with a volume of less than 150 ml.
A 2015 waste audit of household bins, public place bins and gross pollutant/stormwater traps conducted on behalf of the NSW Government found the following:
The NSW Government has adopted the deployment of reverse vending machines (RVMs) across the State through their selected Network Operator TOMRA-Cleanaway.
The ACT Government, in response to social research, will adopt a technology neutral stance and set performance targets for the ACT Network Operator. This will provide the opportunity for industry to determine solutions that are cost effective and meet the needs of the Canberra community.
A network of drop off points across the ACT will be established by the CDS Network Operator. The location and other details, such as opening hours, for these drop-off points has yet to be determined but will be announced later in the year closer to the commencement date.
You will be entitled to claim a 10 cent deposit refund on eligible beverage containers. There are a number of options available to you, such as:
A 10 cent deposit is being adopted across all State and Territory CDSs in Australia.
Research conducted by the ACT Government indicated that the preferred refund methodology for the 10 cents per container was by way of electronic bank transfer and that a refund was an effective means of motivating people to participate use the CDS. There was strong support for CDS to be seen as a new revenue stream for community groups and charities within the Territory.
The ACT CDS may provide an option of consumer to donate their 10 cent deposit refunds to the charities of their choice.
The CDS is expected to reduce the level of beverage containers to some degree. The ACT Government will conduct an audit prior to the commencement of the CDS and this will allow measurement of the impact of CDS on both household recycling and garbage bins.
Around 10% of household garbage bin contents consist of recyclable containers and the CDS may motivate householders to redirect some of these to the CDS.
CDSs operate in around 40 jurisdictions throughout the world including in South Australia and the Northern Territory.
South Australia established its CDS in 1977 and the Northern Territory established its CDS in 2012.
In NSW the Baird Liberal Government announced it would establish a CDS if re-elected in the 2015 State Elections. The Baird Government was returned and announced its CDS would commence in July 2017. The commencement date was subsequently delayed to December 2017. The NSW Government announced their appointed Scheme Coordinator and Network Operator on 29 July 2017, further information is available in the media release (PDF 308KB). During 2017 both the Queensland and Western Australian Governments announced they would commence CDS programs in 2018 and 2019 respectively.
Implementation of an Australia-wide CDS requires the agreement of the Federal Government and all State and Territory Governments. All jurisdictions except Victoria and Tasmania will have a CDS operating by 2018 and it is hoped this will provide momentum for a national scheme.
Not only is the Container Deposit Scheme good for reducing litter and for recovering valuable materials from the waste stream, a container deposit scheme also increases employment within the recycling industry, and brings other community benefits in the form of income generation.
Local schools, charities and community groups can arrange to collect empty cans, bottles and other beverage containers and use the refunds to buy sporting equipment, improve facilities, keep memberships affordable or for other initiatives simply to assist others.
Enterprising groups might partner with businesses and events or consolidate a community collection to achieve scale.