RETURN AND EARN ANNUAL STATUTORY REPORT 2017–18 CONTENTS INTRODUCTION 1 GOALS 2 PRIORITIES 2 SCHEME HIGHLIGHTS 3 Litter reduction 3 Resource recovery 3 Community engagement 3 Recycling outcomes 4 HOW THE SCHEME WORKS 5 Funding the scheme .............................................................................. 5 Consumer participation 5 Roles of the organisations behind the scheme 6 MEETING THE SCHEME’S PRIORITIES 8 PRIORITY 1: ESTABLISH AND MANAGE A COST-EFFECTIVE CONTAINER DEPOSIT SCHEME 9 PRIORITY 2: ESTABLISH AND OPTIMISE A NETWORK OF RETURN POINTS 12 PRIORITY 3: ENSURE EFFECTIVE GOVERNANCE TO MITIGATE AND MANAGE RISKS 18 PRIORITY 4: RAISE AWARENESS, AND CHAMPION COMMUNITY PARTICIPATION AND ADVOCACY 24 LOOKING AHEAD 29 APPENDIX Return point operator volumes report 29 Material recovery facility operators volumes report 38 Return and Earn Annual Statutory Report 2017–18 INTRODUCTION SINCE ROLLING OUT efore NSW introduced the Return and Earn scheme, RETURN AND EARN, THE more than 160 million drink containers littered the state’s streets, beaches, waterways and parks. Drink container STATE’S LARGEST LITTER B litter made up 44 per cent of the volume of litter in the state REDUCTION INITIATIVE, and cost more than $162 million a year to manage. NSW HAS SEEN A 33 The NSW Return and Earn container deposit scheme has had PER CENT REDUCTION a strong start with the support of NSW government, industry IN DRINK CONTAINER and the community. An initiative of the NSW Government and LITTER. funded by contributions from the beverage industry, Return and Earn offers consumers a 10c refund for depositing eligible drink containers at return points across the state. Strong consumer participation in the scheme alongside schools, sporting clubs and community groups has resulted in the return of more than 1.02 billion drink containers since launching in December 2017. This represents an average redemption rate of 53 per cent of the total number of drink containers supplied into NSW, diverting them out of landfill and litter streams in a significant boon for the NSW environment and local communities. An extensive network of 632 return points has been rolled out across NSW by network operator TOMRA Cleanaway within the first seven months of the scheme. The establishment of over- the-counter and automated depot return points has provided secondary business opportunities and also helped charities and community groups to use the scheme to fundraise. Strong awareness of Return and Earn is fundamental to the scheme’s success and a key focus of Exchange for Change has been on community engagement. By June 2018, 86 per cent of NSW residents aged 18 years or over were aware of Return and Earn, with 42 per cent of residents having participated in the scheme.1 These results demonstrate that awareness is already translating into positive action. The early success of Return and Earn would not have been possible without the cooperation of the 520 beverage suppliers which have contributed $195.5 million to enable the successful role out of the scheme. As the scheme operator, Exchange for Change is committed to working closely with suppliers and other stakeholders to ensure the scheme meets the needs and expectations of all those involved. 1 Based on a June 2018 survey of NSW residents conducted by Kantar Public to evaluate the effectiveness of the Return and Earn campaign. 1 Return and Earn Annual Statutory Report 2017–18 GOALS Reduce the volume of litter caused by drinks containers in NSW. Over the next 20 years, the scheme aims to achieve: 1.6 billion 12.6 billion 11 billion fewer drinks more beverage fewer drinks containers containers littered containers recycled ending up in landfill PRIORITIES The scheme identified four priority areas for the first seven months of its operation. 1. 2. 3. 4. ESTABLISH AND ESTABLISH AND ENSURE RAISE MANAGE A OPTIMISE A EFFECTIVE AWARENESS COST-EFFECTIVE NETWORK OF GOVERNANCE AND CHAMPION CONTAINER RETURN POINTS TO MITIGATE AND COMMUNITY DEPOSIT SCHEME MANAGE RISKS PARTICIPATION AND ADVOCACY 2 Return and Earn Annual Statutory Report 2017–18 SCHEME HIGHLIGHTS 1.022 billion 30% reduction 86% drinks containers in the volume of Awareness among returned drinks container litter residents aged 18+ 632 42% 115 participating return points of NSW of residents donation partners 18+ have participated in the scheme Litter reduction kerbside collection, totalling 1.022 billion returned through the scheme. This represents Since Return and Earn started in December an average redemption rate of 53 per cent 2017, NSW has reduced the volume of littered – compared with the 32 per cent returned drinks containers by 30 per cent.2 through kerbside council programs4 in 2017, before the scheme commenced.5 Resource recovery The number of eligible containers returned Community engagement has increased significantly since the scheme Promoting the return, reuse and recycling launched. Of the 1.915 billion3 containers of containers, along with community supplied into NSW between December engagement activities, resulted in strong 2017 and June 2018, 452 million have been awareness. Across the state, 86 per cent returned through the network operator’s of residents aged 18 or over have heard 632 return points across the state, and 570 about the scheme and 42 per cent have million more have been returned through participated.6 2 Keep Australia Beautiful 2017-2018 National Litter Index 3 2.016 billion containers were reported as supplied into NSW between December 2017 and June 2018. An estimated 5 per cent of these containers were exported out of the state. This resulted in a net number of 1.915 billion supplied containers based on 2 August 2018 reported data. 4This 32 per cent refers to the pre-scheme redemption rate between December 2016 and June 2017, calculated using Q1 2018 material recovery facility eligible container factors and a 5 per cent allowance for export. 5 Redemption rate is based on the aggregate audited number of containers refunded at return points by the network operator, and claims made by material recovery facility operators against the total number of containers supplied. 6 Based on a June 2018 survey of NSW residents conducted by Kantar Public, to evaluate the effectiveness of the Return and Earn campaign. 3 Return and Earn Annual Statutory Report 2017–18 Recycling outcomes In addition to the primary aim of reducing Cleanaway Eastern litter in NSW, the scheme’s design has also Creek Sorting Facility enabled clean streams of high-quality recycled The Cleanaway Eastern Creek materials to be collected that are in high container sorting facility uses advanced demand in global commodity markets. technology to process returned drinks By providing a financial incentive for the containers. This includes an optical people of NSW to hold on to or pick up litter, sorting line that can sort, bale and the scheme helps divert drinks containers distribute up to eight tonnes an hour from ending up in landfill. of extremely high-quality recyclable Moves by China to stop accepting lower- material such as aluminium, steel, PET quality commingled and contaminated and HDPE. recyclable materials sparked a reassessment of The facility processes drinks containers long-standing waste management practices in collected through Return and Earn, with Australia and other developed nations. optical sorters automatically separating In the current global environment, there each item based on its material type, at is a growing demand for clean streams of thousands of reads per minute. recyclable materials, in domestic and offshore Air jets separate the containers for markets, for re-use or recycling into quality compaction and baling, turning waste products. Return and Earn has played a vital into highly valuable commodity role in being able to turn waste into a valuable streams for distribution to domestic tradeable commodity. For example, once and international recycling markets. high-grade PET plastic from drink bottles is The facility’s advanced sorting and processed and recycled, manufacturers in processing achieves very low levels of Australia and overseas can use it to make new contamination, increasing the quality of drink bottles and other food-grade containers, the commodities salvaged and creating or re-use it to create new products such as valuable resources for the future. textiles. Return and Earn containers are a valuable commodity benefiting a number of industries. These clean material streams help produce products that avoid or offset the need to use virgin resources. 4 Return and Earn Annual Statutory Report 2017–18 HOW THE SCHEME WORKS he Return and Earn container deposit scheme recognises that the beverage industry shares with the community a Tresponsibility to reduce and deal with waste generated by beverage product packaging. Funding the scheme First suppliers7 of beverages in NSW are required to pay contributions, funding the management, administration and operation of the scheme. As part of the scheme’s operational costs, consumers receive a 10c refund as an incentive to return eligible drinks containers at return points across the state. Consumer participation Consumers can participate in the scheme by collecting eligible containers, taking them to a return point, then getting a 10c refund or making a donation. If consumers choose to put eligible containers in their kerbside recycling, the material recovery facility can make a claim for the 10c refund through the scheme. Figure 1: How the scheme works Participation in the scheme involves three easy steps: 1. 2. 3. Collect eligible Take your Earn a refund or bottles and cans. containers to a make a donation. return point. 7 A first supplier is a business that makes the first supply of eligible beverage containers into NSW. 5 Return and Earn Annual Statutory Report 2017–18 Roles of the organisations behind the scheme NSW ENVIRONMENT EXCHANGE FOR CHANGE PROTECTION AUTHORITY Exchange for Change is the scheme As the scheme regulator, the NSW EPA coordinator of Return and Earn.