A global analysis of beverage container deposit schemes shows Hong Kong’s proposed PRS ‘rebate’ is untesjted, and a new survey of Hong Kong consumers shows the vast majority are unlikely to participate, putting the scheme at risk of collapse.
Over 400 million people in over 50 jurisdictions (countries and states) have access to beverage container deposit or refund schemes. These are generally highly successful with recycling rates for these items in the best performing schemes as high as 98%. An analysis of the 50+ schemes around the world shows they are overwhelmingly based on a ‘deposit’ being paid by consumers, and not simply a rebate and, more importantly, the deposit paid by and refunded to consumers is meaningful enough for them to participate in the scheme.
The most successful European schemes legislate a deposit and refund of €0.25 (HK$2.15), while the current proposal from the Hong Kong government is for a very low ‘rebate’ of up to only HK$0.10. Rebates of at least five times the current proposed rate in Hong Kong are needed to incentivise residents to recycle their beverage containers, finds a new survey by Eco-Business. The survey was conducted to gauge the level of interest and potential participation among residents in Hong Kong in the government’s upcoming PRS on plastic beverage containers and beverage cartons.
By targeting plastic beverage containers, the scheme aims to reduce the amount of plastic entering the environment and for plastic waste to be converted into reusable resources. While most respondents surveyed indicated that they support the PRS on plastic beverage containers and beverage cartons, only 9 per cent of respondents noted that the proposed rebate of HK$0.10 per plastic bottle returned is enough of an incentive. Key highlights from the survey: 86.4 per cent of respondents noted that they support the Hong Kong PRS on plastic beverage containers and beverage cartons being introduced.66.7 per cent of those surveyed indicated that they already recycle their beverage containers most of the time.57.6 per cent of participants noted that a rebate or refund value between HK$0.50 to HK$1 would incentivise them to bring their beverage containers to a collection point for recycling.47 per cent of respondents noted that a recycling target of 75 per cent in three years would ensure the success of the scheme. The Hong Kong government hopes to achieve a recycling rate of 40 per cent in the first year. The survey respondents indicated that increased convenience, stringent regulations and more capacity building will increase the impact of the PRS.
“Deposit refund schemes are noteworthy as a policy mechanism option in Asian countries where public participation in recycling has been lacklustre. Such schemes – if priced correctly – have been known to be highly effective. There are success stories in countries like Germany and Lithuania where return rates have exceeded 90 per cent. The survey could be an indicator of what a segment of Hong Kong values as a sufficiently high rebate. That could be pivotal in ensuring the success of a public-driven recycling scheme,” said Junice Yeo, executive director and head of ESG Intelligence, Eco-Business. “It is important and to be welcomed that Hong Kong is seeking to lead the region in dealing with plastic waste and increase recycling via the proposed PRS on beverage containers. But there is a real risk of a failed scheme under the current proposal including substantial investment risk for the recycling sector, said Robert Kelman, Director, Reloop Asia Pacific. Reloop’s global analysis of these schemes and the Eco-Business survey demonstrate a number of key concerns:The Hong Kong scheme as proposed will offer by far the lowest rebate / refund of any scheme in the world, and especially countries with comparable wealth as Hong Kong, at over 20 times lower than best performing European schemesHong Kong residents are unlikely to substantially participate in this scheme due to this low rebateInvesting in underutilised recycling infrastructure poses a risk for the recycling industry, which can lead to uneconomical maintenance costs and eventual closure, leaving Hong Kong residents with few recycling options for their containers. |