The Danish Deposit and Return System Birgitte Ettrup Dansk- retursystem A/S

The Danish deposit and return system  Danish consumers pay a deposit on bottles or cans when they buy beer, soft drinks, mineral water, iced tea or ready-to-drink lemonade  The deposit is refunded when the bottles or cans are returned  Bottles and cans on which deposits are payable can be taken to a reverse vending machine, or returned to the original selling location  Many stores will also take back bottles and cans on which no deposit is refundable, e.g. products purchased in Germany  Bottles and cans on which no deposit is refundable can also be taken to a local recycling centre  87% of all one-way packaging is returned to Dansk Retursystem A/S

Dansk Retursystem A/S We want to contribute to a cleaner environment We do this by:  Ensuring that as many bottles and cans are returned as possible  Making it as easy as possible to return bottles and cans  Working to ensure that bottles and cans are recycled as much as possible

Background to establishment of Dansk Retursystem A/S Several political decisions contributed to the decision:  Free choice of packaging in Denmark for beer and carbonated soft drinks  Refunds required on packaging for beer and carbonated soft drinks in the interests of the environment  Political requirements on collection and recycling of one-way packaging on which deposits are payable Dansk Retursystem A/S was established as a result of cooperation between the brewing and grocery industries.

Statutory order Statutory Order on Deposits and Collection etc. of Packaging for Beer and certain Soft Drinks – no. 634 of 19 June 2008 Came into force on 4 September paragraphs (in Danish).

 Dansk Retursystem A/S granted exclusive right as administrative and collection company  Compulsory registration for all suppliers of products on which deposits are payable  Requirements for a high returns percentage  Requirements covering marking of all one-way packaging for beer, carbonated soft drinks, alcoholic soft drinks, iced tea, mineral water and ready-to-drink lemonade  Requirements on EU tendering for as many operational tasks as possible  Requirements on reporting of confidential information to impartial firm of accountants  Option for the authorities to purchase or take over the company Main requirements of the Statutory Order

Dansk Retursystem A/S – organisation Owners Board Operations Consumers Producers and importers Stores/offices/ restaurants and others Danish Environmental Protection Agency

Nationwide deposit and return system  Consumers can collect refunds on empty bottles and cans at nearly 6,000 different locations in Denmark  More than 2,800 reverse vending machines installed in 2,600 stores throughout Denmark  More than 600 producers and importers have registered with Dansk Retursystem A/S

Dansk Retursystem A/S  Collects bottles and cans free of charge  Counts all packaging and refunds the deposits paid  Sorts and separates glass, PET and aluminium, and sends the materials for recycling  Pays handling fee  Pays a subsidy for improving efficiency in stores  Carries out information campaigns

Deposit and return system Sales outletsSuppliers Dansk Retursystem A/S Consumers Collection and logistics fees Handling fee

One-way packaging returned  In 2007 Danes returned around 345 million empty items of drinks packaging on which deposits were paid – glass bottles, plastic bottles, and aluminium cans  In 2007 Dansk Retursystem A/S collected enough aluminium to produce 185 million new cans  Return percentage in 2007 was 87%

Dansk Retursystem A/S and the environment  Dansk Retursystem A/S has installed 1,400 compactors on the premises of Denmark’s largest stores  Almost half of all plastic bottles and cans are flattened at the stores  Compactors reduce the transport requirement significantly

 Dansk Retursystem A/S collects packaging from 11,000 customers  Via 11 intermediate storage facilities  Counting takes place at two counting stations in Jutland and Zealand

Deposit and return system is good for the environment When we collect empty bottles and cans it means:  Less rubbish, both in the bin at home and in the environment  Better use of resources – recycling of all materials  We use less oil, gas, metal  Lower energy consumption = less CO 2 = less climate change

Does it work?  Yes. Return percentage is increasing – now 87% for one-way packaging  2008 nationwide rubbish collection. 154,400 cans collected in total – only 7,790 deposit refundable items  Very few free riders

Why does the system work?  Refundable deposit  Convenience  Responsibility: I behave in an environmentally responsible way  Drink products sold in Denmark without the deposit mark are liable to confiscation and fines  Historical – long-standing tradition for collecting bottles in Denmark