Studying a Single-Use Deposit Return System for South Africa

Collaborated International UWC Study: Proposed Single-Use Deposit Return System for South Africa

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The findings of a joint international study have been released. The study evaluates the potential for a tailored Deposit Return System (DRS) for single-use beverage packaging designed to meet South Africa's needs.

The report indicates that under such a system collection rates for beverage containers can increase significantly, particularly for plastic bottles and glass bottles.

The University of the Western Cape (UWC) in association with Eunomia Research and Consulting Ltd. (Eunomia) investigated the feasibility, cost, and impact of a proposed mandatory single-use beverage DRS for South Africa.

The study was co-funded by the Norwegian Embassy and the Alliance to End Plastic Waste (Alliance) and will be of interest to other countries with an active informal sector and considering the potential opportunity of DRS for beverage bottles.

A deposit level of R1 offers the potential to achieve collection rates as high as 90% – higher than South Africa’s existing Extended Producer Responsibility (EPR) targets.

The study recognises that South Africa’s specific circumstances result in uncertainty and risks in some of the aspects of DRS design and in the outcomes that are likely to be achieved. Further work, particularly through practical and operational trials and pilots of the DRS concepts would be necessary to reduce the uncertainties and risks.

An important aspect of this study has been on-the-ground research into key aspects that define the South African context. This involved engaging with the informal economy through waste reclaimer interviews and workshops, as well as surveying Buy Back Centres (BBCs) – which purchase recyclable materials from waste reclaimers and other suppliers – and informal retailers and HORECA establishments. The research undertaken for this study also included a market overview consisting of field surveys and data analysis, and a literature review of South African legislation and DRS/EPR legislation from nations in Africa and beyond.

In terms of environmental impact, the DRS has the potential to deliver a substantial net reduction in greenhouse gas (GHG) emission, ranging from 119 to 294 thousand tonnes CO2e per year. These reductions are expected on both the low and high placed-on-the-market (PoM) baselines and across two return route scenarios. An increase in recycling activity is the most impactful factor in this result, with an additional 305–477 thousand tonnes of waste being recycled annually, reducing the amount of waste being sent to landfills and decreasing litter.

The study further estimates that the DRS could achieve a reduction in environmental externalities (considering GHGs and localised air pollutants) valued at between ZAR 0.5 and 1.2 billion per year. These environmental savings, in monetised environmental externalities and litter disamenity, are projected to be greater than the overall cost of the DRS to producers in terms of producer fees.

Economic benefits are also anticipated, as a DRS is projected to create between 4.6 and 8.7 thousand additional formal jobs across the beverage supply chain. Moreover, the system could generate between 1.7 and 31.5 thousand new jobs for waste reclaimers ‘separately collecting’ DRS containers from consumers, with incomes increasing by up to 38%.

The total cost of implementing DRS to beverage producers is calculated at ZAR 1.9 to 3.5 billion per year. While a South African DRS would come at increased costs to beverage producers compared with current EPR costs, it is expected to deliver significantly higher collection rates and improved environmental performance.

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