The Scottish National Investment Bank has invested £9 million to fund the development of Circularity Scotland Limited, the administrator for Scotland’s Deposit Return Scheme (DRS).
The Bank’s commitment was key to securing an additional £9m capital from Bank of Scotland. Together, the investments aim to fund the start-up costs of the scheme administrator. The DRS is expected to go live in August 2023.
The DRS aims to support Scottish Government efforts to help households return empty, single-use containers for collection for recycling. It also aims to support a circular economy and tackle climate change, as well as increasing the quantity and quality of the materials collected for recycling, and decreasing litter.
According to the Scottish National Investment Bank, the investment supports its goal of endorsing a ‘just transition’ to net zero and its objective to ‘leverage private capital in its investments.’
Mark Munro, Executive Director, Sustainable Investment at the Scottish National Investment Bank said: “We are pleased to be able to support the roll out of the Deposit Return Scheme in Scotland by investing in Circularity Scotland. Increasing recycling rates is a vital component in Scotland’s transition to net zero, one of the Bank’s key missions.”
Lorna Slater, Circular Economy Minister, commented: “This is a tremendous vote of confidence in Scotland's deposit return scheme, which will be the first of its kind in the UK and one of the most environmentally ambitious and accessible in Europe.
“By capturing billions of bottles and cans every year for recycling, it will make an important contribution to our response to the climate crisis.
“I look forward to working with Circularity Scotland as they use this funding to deliver Scotland’s deposit return scheme, which will go live nationwide in August next year.”
David Harris, Chief Executive Officer at Circularity Scotland added: “We are delighted to be working with Scottish National Investment Bank and Bank of Scotland.
“Their investments alongside those already received from industry will support our work in providing Scotland with the most comprehensive and efficient Deposit Return Scheme in the world.
“We are committed to being a highly effective and efficient scheme administrator creating exciting employment opportunities and this funding makes that possible.”
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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.