In an effort to incentivize consumers to return plastic bottles, government inspectors are proposing a significant rise in deposits to 50 cents starting next year, as reported by Tuesday's FD.
This measure, according to the paper, aims to circumvent a looming €250 million penalty that the industry faces if it falls short of recycling targets in the upcoming year. The proposal, outlined in a confidential letter sent by inspectors to Verpact, the agency overseeing recycling initiatives, suggests increasing the deposit for large plastic bottles from the current 25 cents to 50 cents, with small bottles rising from 15 cents.
Additionally, dairy and fruit juice bottles, currently excluded from the recycling scheme, would be incorporated, accounting for approximately 16% of all plastic bottles sold.
While deposits on cans, introduced in 2022, are not slated for a similar increase, the industry is expected to ensure that 90% of drinks bottles are recycled, a goal which remains at around 70%. One of the primary challenges cited is the lack of accessible locations for consumers to return bottles and cans.
If approved, the heightened deposits would take effect next July, with the possibility of reduction contingent upon achieving the 90% recycling target. Failure to implement plans for the increased charge by next summer could result in a €50 million fine for the industry.
Both the ILT inspectorate and Verpact declined to provide detailed comments on the letter, although they confirmed the potential for industry fines. Rabobank analyst Francois Sonneville suggested that consumers might seek alternative options in response to higher deposits, viewing the 50-cent fee as a price hike if they are unable to return the bottles.
In 2022, consumers failed to reclaim €87 million in plastic bottle deposits, according to broadcaster NOS. With approximately 700 million large plastic bottles and one billion small ones purchased annually in the Netherlands, only 68% were returned by consumers in 2022. Unclaimed deposits are managed by an industry foundation, funding recycling system improvements and public awareness campaigns. Photo by dierk schaefer, Wikimedia commons.