The Welsh government will be allowed to launch a deposit return scheme including glass in a pivotal decision from Westminster, which sources said would have huge implications for the UK rollout planned for October next year.
The UK government today announced it had approved the Welsh government’s application under the Internal Market Act for devolved powers to push ahead with a breakaway DRS. It will include allowing Wales to launch a pilot scheme including glass.
As part of conditions for approval, it has been announced that glass containers in Wales will be exempt from deposits and labelling requirements for four years from the planned start of the scheme in October 2027.
Meanwhile, plans for a mandatory reuse target to be set for producers in Wales have not been given the go-ahead and will be subject to a further application.
It brings to an end weeks of frantic negotiations between Defra and the Welsh government, as well as drinks producers.
In November, when it made its application under the legislation, Wales threatened to pull out of DRS if the UK government blocked its application, in the way it did for the pioneering Scottish scheme.
A Welsh cabinet statement today said: “We have always been clear that we need to progress a scheme which meets Wales’ needs and delivers improvement against our high Recycling rates, whilst managing interoperability across the UK.
“In practice, this means a scheme that includes glass bottles in Wales, even though the previous UK government chose to diverge from that previously collectively agreed scope. That difference in scope has meant the need for an exclusion from the UK Internal Market Act.
“Through partnership working with the other governments in the UK, I am pleased to be able to confirm their agreement to that exclusion being brought forward.
“The Welsh scheme will encompass PET plastic bottles, aluminium and steel cans, and glass bottles drinks single-use containers from day one.”
Its government said a “clear pathway” towards the rollout of reuse, supported by pilots with industry, had been set but admitted this meant the main content of the recent public consultation in relation to setting out onward targets for reuse would need to be brought forward “in subsequent regulations”.
“Discussions on the UKIMA exclusion for these elements have already commenced,” it added.
Andy Bagnall, director general at the BSDA, welcomed the announcement but said the inclusion of glass meant big challenges remained for the industry.
He said: “This is a big step forward in establishing a UK-wide deposit return scheme, enabling a unified approach for aluminium cans and plastic bottles, although granting an exclusion for single-use glass means challenges remain.
“We look forward to the Welsh government now rapidly appointing a scheme administrator and ensuring glass is included in the scheme in the most practical way possible, by keeping the required number of glass-enabled reverse vending machines to a minimum.
“The Welsh government must also engage with industry to resolve the issues inherent in different schemes on either side of the border – including the risk of substantial fraud – to remove the cliff-edge in four years’ time when the transition period ends.”
He added: “This pragmatic approach is the only way to deliver a workable scheme without unintended consequences for shoppers and small businesses. The soft drinks industry will play its part so that, together, we can kickstart the circular economy, boost recycling and reduce litter.”
Previously, retailers have expressed huge concern over the idea of a phasing-in period for glass, starting with zero deposits, arguing they will be left to spend tens of millions on reverse vending machines with no incentive for consumers to use them.
Andrew Opie, director of food and sustainability at the BRC, said: “The clarity given today on Welsh DRS by the UK government under the Internal Market Act is long-awaited and welcome, and we are pleased Wales will align their scheme on PET and cans with the rest of the UK.
“However, significant challenges and uncertainty remain around proposals to include single-use glass without a deposit, which will add costs and create potential fraud risks, without clear environmental benefit. We will continue to work with the Welsh government to resolve these issues and explore more effective alternatives. In the meantime, it is vital that the Welsh government appoints a deposit management organisation as soon as possible to provide certainty for the industry.”
One retailer source said: “If Wales is allowed to embark on trials with glass, what does this mean for retailers? Will it mean that retailers still ned to make huge investments in infrastructure to allow Wales to launch its pilots?
“Are we going to be used as the guinea pigs in all this?”
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