Cleanaway welcomes Victorian Container Deposit Scheme split responsibility model

The Victorian CDS model would split responsibility between operation and governance to ensure optimal outcomes for the scheme

Industry Updates

November 2, 2020

Highlights

“Split-governance encourages beverage companies to be accountable for the containers they produce, while also maximising access to return points for the community which ultimately is the best outcome for the environment with more containers returned and recycled.”

Highlights

“Split-governance encourages beverage companies to be accountable for the containers they produce, while also maximising access to return points for the community which ultimately is the best outcome for the environment with more containers returned and recycled.”

Cleanaway welcomes today’s announcement by the Andrews Government inviting Victorians to provide comment on the proposed split responsibility container deposit scheme (CDS).

“I congratulate the Andrews Government on today’s CDS announcement. This is a huge step towards achieving a domestic circular economy,” said Cleanaway’s CEO and Managing Director Vik Bansal.

The Victorian Government has indicated that a split responsibility CDS is the preferred model. By separating funding and operational roles, this model creates positive commercial tension and clarity of purpose. Each scheme partner has distinct drivers for cost efficiency, high consumer redemption rates, good citizen access and scheme integrity. The scheme coordinator is motivated to manage the scheme’s costs efficiently while the network operator is motivated to increase participation and drive container returns.

Under a split responsibility CDS model Victorians can expect to see a significant reduction in litter particularly in waterways, a maximum return in bottles and a clean, high quality stream of materials for recycling.

“Split-governance encourages beverage companies to be accountable for the containers they produce, while also maximising access to return points for the community which ultimately is the best outcome for the environment with more containers returned and recycled.” said Vik.

Apart from the environmental benefits from litter reduction and increased recycling, the CDS also stimulates the local economy by creating jobs and industries towards the circular economy. It also provides social benefits by providing opportunities for charities and community groups to participate in fundraising and social enterprise activities.

“Charities and community groups are the big winners here. Charities can engage and benefit from the split responsibility model as collection point operators, the recipients of direct donations though reverse vending machines or raising funds by bottle collection drives.” said Vik.

A well designed CDS provides convenience and easy access to return points for consumers, aided by cutting edge technology such as reverse vending machines. Learn more about what goes into a world-class container deposit scheme in the video below.

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