The Welsh government has agreed to accelerate its plans for a deposit return scheme, keeping hopes alive of a UK-wide 2027 rollout.
Welsh deputy first minister and cabinet secretary for climate change & rural affairs Huw Irranca-Davies today announced the commitment, following weeks of intensive talks with the new industry DMO set up to run the scheme by the UK government in April.
Under the new compromise, the Welsh government has agreed to follow a phased implementation of DRS to try to prevent labelling chaos hitting the drinks industry when DRS comes in, as has been feared by companies and trade bodies.
The Grocer revealed in May that industry figures from the DMO and Defra had been holding frantic talks with the Welsh government in order to try to salvage the chances of a UK rollout.
Wales’s decision to withdraw from plans for a UK-wide DRS start date, revealed in November last year, was seen as a hammer blow to the rollout, and had threatened to delay or even collapse the whole project.
Wales to align with UK DRS plans
“We have heard clearly from industry that the scenario where a scheme is introduced in the other parts of the UK, with no scheme in place in Wales, carries the greatest risk of operational complexity and associated costs,” said Irranca-Davies in a statement today.
“I have therefore set out to industry that we are willing to accelerate our implementation timetable to align with the rest of the UK, which would provide for interoperability between common materials.”
However, the Welsh government has not backed down over its determination to include glass in its DRS rollout.
Irranca-Davies added; “Glass remains in scope of our scheme, as this means that in Wales, we will be able to begin to roll out reuse as a core part of the scheme.
“It also means we can continue to improve glass recycling against our baseline performance – by improving on-the-go recycling – whilst tackling the littering of all forms of drinks containers.”
An industry source described the move as a “major breakthrough” for the DRS.
“Having a Welsh timeframe completely out of sync with the rest of the UK was a nightmare scenario for the industry,” they added. “Whilst Wales having glass in its scheme will still cause many complexities this is a real sign of a change of tone and comes after weeks of negotiations.”
Irranca-Davies added: “I recognise the need for clear arrangements to ensure there are no unintended consequences caused by the difference in scope.
“Specifically, industry has highlighted the need for a phased approach within which there would be no requirement to have different labelling and no fraud risk, as this would also prevent consequential impacts on current production and distribution arrangements.
“This represents a practical and pragmatic solution, which we will therefore work to incorporate within the scheme.”
A ’logistical nightmare’
Despite today’s breakthrough other sources told The Grocer there were still “huge obstacles” to climb before companies would be in a position to launch a joined-up DRS scheme and meet Labour’s scheduled launch date .
“Whilst today’s announcement does represent progress it doesn’t take away from the huge problem of Wales insisting on including glass and the logistical nightmare that poses to companies,” said one source.
UK and Ireland Director at circular economy non-profit Reloop, Sarah Horner, said that, while the update was welcome, she also hoped that all parties ”keep in mind the benefits that deposit return systems bring”.
”Deposit return is also part of a more circular economy for all nations in the UK that recognises the value of reusing wasted materials, keeping materials in use for longer and regenerating natural systems,” she added.
EcoVend managing director Travis Way also said it was good to get clarity from the Welsh government, as the move would give ”vital direction to drinks manufacturers, retailers, and the wider waste sector”, helping them prepare for implementation. He described the alignment as ”another important step towards a more circular economy”.
The Grocer understands talks are continuing between the DMO, Defra and the Welsh government to try to secure more common ground.
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