Written question WQ88817

As set out within our circular economy strategy, Beyond Recycling, our aim is to become a zero waste and net zero carbon nation. The Deposit Return Scheme (DRS), as part of the wider Extended Producer Responsibility reforms, is an important action in response to the climate and nature emergency with all sectors needing to play their part in moving to more sustainable business practices. The Impact Assessment published alongside our joint consultation included an analysis showing the higher Net Present Value and Benefit Cost Ratio of an ‘all-in’ scheme including glass compared to not including glass.

Wales’ glass collection rate is not currently higher than that predicted by the scheme - the glass recycling rate which has been quoted by the sector excludes on-the-go recycling and glass which is littered and is therefore not a complete picture. As identified within the published impact assessment, at a UK level approximately 1.5 billion glass bottles are not recycled every year. The target rate for glass bottles in the deposit return scheme will be 90% of the glass bottles placed on the market in Wales.

We recognise smaller producers may face challenges in adapting to the obligations of a DRS and that is why we are looking at how fees could be reduced for smaller business alongside exclusions such as those for drinks producers who use refill and for producers of low volume or limited item product lines.

In terms of incorporating industry feedback, two formal consultations have been held, the first in 2019 on the potential design and scope for the DRS for England, Wales and Northern Ireland and the second in the summer 2021 on the proposed model developed on the back of the feedback from the first consultation. In addition, my officials have worked in partnership with those in Northern Ireland and the UK Government for England to set up a Deposit Return Scheme Industry Forum bringing together voices across the drinks sector, hospitality and retail. This includes specialist sub-groups covering retail, hospitality and small producers as part of the on-going programme of engagement with the sector to support implementation. This is further supplemented by Wales-specific engagement where officials meet regularly with trade representatives as well as with Welsh producers directly to discuss the development of the scheme as part of the transition to a more circular economy.

The DRS regulations will require the organisation appointed to operate the scheme to report annually on its delivery and performance to allow all stakeholders to understand the progress being achieved by the scheme.