May 31, 2023

Deposit Refund System needs robust and well-defined legislative framework

Lisbon, May 31, 2023 – Today took place the 2nd SDR Portugal Conference – Circular Economy and Innovation , organized bySDR Portugal, a nonprofit association applying for the license to manage the future Single-Use Beverage Packaging Deposit Refund System (DRS) to be established in Portugal. The event took place in a hybrid format and brought together over 120 professionals from the waste management sector at the Museum of the Orient in Lisbon.

Leonardo Mathias, president of SDR Portugal, emphasized the importance and urgency of implementing this system in the country, stating that “DRS is the best solution for Portugal as it prioritizes the efficiency of processes and resources, leveraging the role of each player in the waste management sector, as well as the responsibility of citizens as key elements in the circular economy that we aim to establish. We are living in times of change, hope, and progress. At SDR, we believe that these are times for ambition and for affirming a system focused on serving people, valuing, and protecting natural resources. What was important yesterday is now urgent: Portugal cannot afford to waste any more time; it cannot continue to send 1.5 billion packaging units for incineration,” reiterates Leonardo Mathias.

Hugo Polido Pires, Secretary of State for the Environment, acknowledged that the government has fallen short of its responsibilities to the Portuguese people due to the delay in publishing UNILEX but maintained confidence in the set deadline for the enactment of the decree-law that will regulate the DRS: “I commit, as a government official, to do everything in my power to ensure that the Portuguese Deposit Refund System sees the light of day as soon as possible, so that we can steer the country toward achieving the targets set by the European Union.”. “Circular economy is not just a slogan. The DRS is a system that will ensure better waste management, empowering Portugal to face one of the greatest challenges of our time This transition in the waste sector must be swift, and all of us should actively be a part of this paradigm shift because we are fighting for the sustainability of our future”, said the Secretary of State.

Kaupo Karba, President of the European Association of National Deposit Refund Systems, presented an overview of the 13 Deposit Refund Systems currently in operation in Europe, announcing that “it is expected that several European countries will join the DRS in the coming years: Romania and Hungary in 2023; Ireland in 2024 and Greece, Cyprus, Austria and Portugal in 2025”. The CEO of EestiPandipakend, the Deposit Refund System of Estonia, advocated for the DRS as a necessary condition for increasing recycling rates of single-use packaging worldwide. “The success of the Deposit Refund System depends primarily on its nonprofit principle, the correct initial configuration of its operational and legal procedures, the control policy over the entire operation, the involvement of all stakeholders, as well as the constant awareness-raising of citizens” emphasized Kaupo Karba at the end of his presentation.

Ana Cristina Carrola, Member of the Board of Directors of the Portuguese Environment Agency, presented the Regulatory Framework of the DRS with a brief explanation of the new packaging regulations and the revision of the Packaging and Packaging Waste Directive. She also emphasized that “by 2030, all plastic packaging circulating in the EU market should be reusable or recyclable”. “In terms of environmental sustainability is a priority for Portugal to amend Unilex – Decree-Law 152-D/2017 in its current version – which will regulate the DRS and the interactions between SDR and the Integrated Packaging Waste Management System in alignment with the new Packaging Regulation being prepared in the EU, which mandates the DRS as a compulsory model”, highlighted the Member of the Board of Directors of the Portuguese Environment Agency.

In his presentation, Paulo Ferrão, Professor at the Instituto Superior Técnico, delved into the importance of innovation and circularity in packaging within the context we live in, sharing his vision regarding the potential of the SDR as a vehicle for promoting positive environmental impacts. “The most difficult part is already behind us! The sector is united in this mission: industry, companies, operators, administration, and civil society. We are confident that national and regional authorities are committed. Now is the time for them to do their part so that we can implement the solution that Portugal needs”, emphasized the waste management expert.

Moderated by Paulo Ferrão, the debate panel composed by: Leonor Sottomayor, SDRetalhistas; Márcio Cruz, Circular Drinks; Benedita Chaves, from the Department of Innovation and Development at LIPOR; Susana Leitão, Coordinator of the Quality and Environment, and Training and Labor Market Departments at AHRESP; and Carla Pinto, Diretora de Serviços de Sustentabilidade Empresarial na DGAE. Entre vários temas abordados, o painel foi unânime no reforço da ideia de que é absolutamente primordial um enquadramento legislativo robusto e bem definido, que corresponda aos pilares do sistema que se pretende implementar, e concretize devidamente a coexistência complementar entre o SDR e o SIGRE.

The video of the 2nd SDR Portugal Conference is available on YouTube.

SDR Portugal – Deposit Refund System
SDR Portugal comprises companies in the beverage industry and retailers operating in Portugal, namely: the Water of Fastio, Aguas das Caldas de Penacova, Coca-cola, Water Company of Areeiro, Water Company of Vimeiro, Beer Company of Madeira, Font Salem Portugal, Areeiro Group, Monchique Mineral Water, Parmalat Portugal, SCC – Sociedade Central de Cervejas, Sumol+Compal, Super Bock Group, Unilever FIMA and the associations APIAM – Mineral and spring waters of Portugal and PROBEB – Portuguese Association of Non-Alcoholic Beverages (which constitute the Circular Drinks Association and represent 90% share of the refreshing drinks industry) and the badges Auchan, Intermarché, Lidl, Pingo Doce, MCSonae, Mercadona, makro and Dia Portugal (which constitute the SDRetalhistas Association and which account for more than 80% of the total Portuguese distribution market).

The industry and retail sectors are coming together with the mission to fulfil what they believe is a national imperative: increasing the number of collected and recycled packaging while reducing their environmental impact and contributing to Portugal’s commitment to meeting its targets. At the same time, they aim to create conditions to stimulate technological innovation and the competitiveness of Portuguese companies, boosting the national economy.

With the implementation of the Deposit Refund System, SDR Portugal, through its shareholders, anticipates an investment exceeding 100 million euros, of which 70 million should be allocated within the first two years (the minimum implementation period of the system following the issuance of the license) and the creation of more than 1,500 direct and indirect jobs.

Comprising major Packagers (Producers and Distributors) with national coverage, SDR Portugal aims to manage an efficient system, thanks to the achieved economies of scale. It will reduce the complexity of the registration of the covered packaging, simplifying operations for packagers and retailers with more transparent costs and operations. This will also lead to a reduction in regulatory costs for the government with equity in the applied fees. This new system will provide greater clarity for consumers, contribute to higher recycling rates to meet European targets, and help reduce littering by up to 40% and marine litter.

Other announcements

July 3, 2023

SDR Portugal and Association of Food Product Distributors sign a Collaboration Protocol

March 22, 2023

SDR Portugal and the Portuguese Association of Shopping Centres sign a collaboration protocol

March 1, 2023

AHRESP and SDR Portugal sign collaboration protocol

December 13, 2022

Dia Portugal joins SDR Portugal