Victoria’s container deposit scheme, branded CDS Vic, is slated for a 1 November start, with the state government appointing Visy, TOMRA Cleanaway and Return-It as network operators, and VicReturn as scheme operator.
CDS Vic is part of the Victorian government’s $515 million investment to overhaul the state’s waste and recycling sector, including a new standardised four-stream waste and recycling system to help meet a target of diverting 80 per cent of all material from landfill by 2030.
The scheme will allow the return of used drink cans, bottles, and cartons for a 10-cent refund. The government said it will reduce Victoria’s litter by up to 50 per cent, create new economic opportunities, generate 645 jobs, and turn drink containers into new recycled products.
Victorian Environment Minister Ingrid Stitt said the scheme would be one of the most accessible in the country with more than 600 refund collection points across the state – the highest number of refund collection points per person in Australia.
Two hundred of those collection points will be installed by packaging and recycling giant Visy, which is is Australia's largest processor of kerbside recycling. Visy says its network operating model for the scheme will create an estimated 215 jobs directly in the network, with up to 500 indirect jobs created across the Victorian economy.
“Visy’s infrastructure and expertise for recycling, product innovation and logistics will help ensure the container deposit scheme achieves strong recycling rates, creates new local jobs, and reduces waste and emissions from landfill,” said Visy CEO Mark De Wit. “We will empower local schools, charities and sporting groups to reduce litter and fundraise for projects by establishing the most accessible scheme across Australia.”
Visy will be supported by Envirobank, an Australian-owned and recognised indigenous business. Together they will run the collection and refund points across the Loddon, Mallee and Hume regions, as well as the inner north-eastern suburbs of Melbourne.
Within 12 months of the scheme starting, the network operators will be required to have a minimum of one collection point per 14,500 people in metropolitan areas, at least one per town of 750 people in regional areas, and at least one per town of 350 people in remote areas.
SCHEME OPERATOR
VicReturn, the not-for-profit entity formed by Lion, Coca-Cola Europacific Partners (CCEP), and Asahi Beverages, will be the scheme operator. The companies have been involved in managing schemes across Australia.
VicReturn has board representatives from the three companies, with an independent chair – Paul Klymenko – and directors, which will be appointed from the waste and recycling industry and from small and medium-size beverage manufacturers.
As scheme coordinator, VicReturn will manage the marketing of CDS Vic, run its financial operations, and ensure the scheme runs smoothly.
VicReturn chair Paul Klymenko said the CDS would have social and environmental benefits.
“As the co-founder and chief sustainability advisor of Planet Ark, I couldn’t be more pleased to be associated with this great Victorian scheme,” Klymenko said.
BRAND OWNERS RESPOND
CCEP VP and GM – Australia, Pacific & Indonesia, Peter West, said the company is set on being a catalyst in Australia’s circular economy.
“The launch of CDS Vic represents a step-change for Victoria’s circular economy. Through our involvement in VicReturn, coupled with our investment in Circular Plastics Australia’s PET recycling plant in Altona with Pact Group, Cleanaway, and Asahi Beverages, we are proud to help create a closed loop in Victoria where bottles and cans can be used, collected, recycled and reborn,” West said.
As CCEP’s partner in Circular Plastics Australia, Asahi Beverages Group CEO Robert Iervasi echoed West’s comments.
“As the maker of some of Victoria’s most beloved beverages such as Victoria Bitter, Schweppes, Pepsi Max, Solo and Cool Ridge water, we’re pleased that more of our beverage containers will now be recycled and play a part in the circular economy,” Iervasi said.
Lion Group CEO Sam Fisher said, “We have ambitious packaging and circular economy targets and look forward to the volume of our beverage containers returned and recycled increasing significantly as the Victorian scheme comes online.
“Lion is proud of its longstanding involvement in Australian container deposit schemes, which stretches back more than 40 years.”
ABCL CALLS FOR HARMONISATION
Peak body representing the non-alcoholic beverages industry, the Australian Beverages Council Limited (ABCL) has welcomed CDS Vic's announcement saying it would deliver “world class” collection and recycling for drinks containers across the state.
ABCL CEO Geoff Parker said, “We welcome CDS VIC and VicReturn as the next drivers of circularity in Australia and the ABCL looks forward to supporting them as our members transition into the scheme over the coming months.
“We know through our engagement with consumers including via our DrinkFacts initiative, that Victorians look forward to being able to get ten cents back for their drinks containers while doing the right thing for the environment.”
Parker noted that the country is now only one state away from having an entire continent covered by CDS, saying this is a particular point of pride for the beverage industry. He said the ABCL supports nation-leading initiatives that create clean, source-separated materials for reintegration into food-grade beverage packaging.
“We are also encouraged by Victoria’s adoption of ‘caps on’ bottle return policy and a comprehensive network of collection points, which will drive participation in the scheme by Victorians,” he said.
However, Parker did point to the need for harmonisation across all states' schemes on items such as registration pricing and definitions when completing their regulations in areas including 'first supplier', 'contract bottler' designation and export protocols.
