SDR PORTUGAL CONFERENCE:
A GLOBAL SOLUTION TO LOCAL CHALLENGES
Lisbon, July 8, 2022 – The SDR Portugal conference was held today – A GLOBAL SOLUTION TO LOCAL CHALLENGES, the first promoted by SDR Portugal, a non-profit association applying for the license or concession of management of the future Single-Use Beverage Packaging Deposit Refund System (DRS) to be created in Portugal. The event took place in a hybrid format and brought together hundreds of professionals from various areas of the waste sector.
For Leonardo Mathias, president of SDRPortugal,
“The conference we are promoting today is an example of the commitment of SDR Portugal’s associates: working closely with all stakeholders in the sector, transparently and honestly, supported by knowledge and research, to help Portugal achieve its objectives while developing its economy. It’s a forum for sharing knowledge and analysis with the participation of all. It’s in our hands, all of us, and in each of our areas of expertise, to decide and act to do better. This is the moment to, with pedagogy, invest in and innovate in environmental and management solutions capable of helping the country make the qualitative and quantitative leap it needs. That is our proposal. A unified solution that integrates, in an aggregative and collaborative manner, the knowledge and value of all stakeholders in the value chain.”
Nuno Lacasta, President of the Portuguese Environment Agency and who attended the SDR Portugal Conference on behalf of the Minister of the Environment and Climate Action, highlighted that
“In the area of waste collection and treatment in particular, time is decisive. We are behind in this process, and we will have to accelerate and understand the role of each of the stakeholders in this process to make up for lost time. The fundamental concept of an DRS presents and represents a new logic to the people, and no one can be exempt from participating and contributing to this challenge. The composition of the SDR Association sends a very interesting and positive signal in this process, bringing together various entities that are competitors with each other. And that is very important, considering the objectives on the table, especially the completion and regulation of the future DRS. In this sense, this event is very important and timely to promote the exchange of views among the different agents involved in the process of creating and launching an SDR in Portugal”.
Rita Marques, Secretary of State for Tourism, Commerce and Services, who, due to scheduling constraints, was unable to attend the closing of the Conference but provided a video message, emphasized that:
“We all know that it was the goal of all of us to have an operational DRS by December 31, 2021, something that, for various reasons, was not possible to achieve. Therefore, at this point, we are all very committed to finding an efficient and balanced solution that will allow us to have an efficient DRS very soon. From the government’s perspective, there is an awareness that we all need to work together in a coordinated manner. For the DRS to become a reality, we need to consider various dimensions, including the role that consumers can play in this area, which will be crucial in driving the necessary changes towards a more circular economy. In fact, for the implementation of the DRS in Portugal, it will be essential to work on consumer communication in a special way, to ensure a correct perception of the various collection systems that will coexist.”
Highlighted in the program was the presentation by international consultants Eunomia and Earth Care Consulting, experts in the waste sector with extensive work experience, including with the European Union. They discussed the Key Principles for the Success of a Deposit Refund System. Additionally, a study produced by the national environmental consultancy 3drivers – Engineering, Innovation, and Environment, which analyzes the impact of the Deposit Refund System on the current Integrated Packaging and Packaging Waste System (SIGRE), was also featured.
According to the study presented by 3drivers which intended to quantify the transfer of beverage packaging waste from SIGRE to the Deposit Refund System, by material, type of drink, in value and volume (measured in terms of number of units and weight), to evaluate the impact of the transfer of packaging and packaging waste management on the financial flows of current management entities and in the Municipalities/Urban Waste Management Systems and to analyze the benefits of implementing a Deposit and Reimbursement System in Portugal – the model proposed by SDR Portugal will be able to double recycling of non-reusable beverage packaging in Portugal and generate benefits for Municipalities and Urban Waste Management Systems (SGRU) and, consequently, for citizens.
Among the conclusions of the Impact Assessment of the Deposit Refund System on SIGRE, considering the solution presented by SDR Portugal and looking at the 5th year of operation, the following observations can be made:
a) Potential gains for the SGRUs (Waste Management Entities) and Municipalities, ranging from 9 to 20 million euros, due to reduced collection and sorting costs for beverage packaging waste that transitions to the DRS;
b) Increases in revenue for the SGRUs (total Counterpart Values) estimated at around 14.5 million euros, if SIGRE meets the 2030 targets for waste (excluding beverage packaging that transitions to DRS);
c) Loss of revenue for the SGRUs estimated at approximately 8.0 million euros, representing about 3% of the revenue generated from managing this type of waste;
d) Significant reduction in total littering quantities (30 to 40%) and a decrease of 70 to 90% in the quantity of beverage packaging in littering;
e) Reduction in costs associated with urban cleaning estimated to be between 20 and 40 million euros per year.
In addition to these indicators that highlight the overall benefits for SIGRE with the implementation of the model proposed by SDR Portugal, the study also demonstrates indirect benefits of the Deposit Refund System in terms of the circular economy, including:
a) Improvement in the quality of collected materials, which, when used in the production of new products, can help avoid the annual emission of 109,000 tons of CO2eq.
b) The potential to reduce marine litter by up to 90%.
c) The possibility of obtaining less contaminated flows of packaging waste, reducing the contamination rate from 18 to 26% (lower values are observed in Portugal) to 1 to 4%.
The implementation of intelligent collection systems, particularly with Reverse Vending Machines (RVMs) and counting centres, allows for increased traceability of waste flows. This ensures better quality control, improved supervision, reduced fraud risks, and continuous real-time assessment of the deposit system’s success. It also enables the anticipation and swift correction of potential deviations.
A panel of experts, that analised all these contents, participated in the debate. The panel included Pedro Nazareth, CEO of Electrão and Vice-President of Fluxos (which is part of the Entities Managing the SIGRE), Emídio Pinheiro, Chairman of the Board of EGF – Environment Global Facilities, Carla Velez, Secretary-General of ESGRA – Association for Waste Management, Susana Fonseca, Vice-President of Zero – Association for a Sustainable Terrestrial System, and Miguel Aranda da Silva, CEO of SDR Portugal.
SDR Portugal – Deposit Refund System
The SDR Portugal consists of the companies in the beverage industry and retailers operating in Portugal, like Coca-Cola, Central de Cervejas, Sumol+Compal, Super Bock Group, and Unilever (comprising the Circular Drinks Association and representing 90% share of the refreshing drinks industry), as well as the brands Auchan, Intermarché, Lidl, Mercadona, Pingo Doce, and MC (forming SDRetalhistas Association and representing 80% of the total Portuguese 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. 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 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 / concession) and the creation of more than 1,500 direct and indirect jobs. Nationwide, the proposed system envisions the deployment of 3,600 return machines, retrieval equipment with integrated technology that accepts used packaging. In addition to installation on large retail surfaces (2,600). Out of the universe of 90,000 points in traditional commerce and the HORECA channel, the proposed system aims to ensure the collection of packaging from more than one-third of the total.
Comprising major Packagers (Producers and Distributors) with national coverage, SDR aims to simultaneously manage an efficient system, thanks to the achieved economies of scale. It will reduce the complexity of the registration system for 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 also help reduce littering by up to 40% and marine litter by up to 90%.