With a direct investment estimated at more than 100 million euros – of which 70 million were made in the first two years – the Deposit Refund System proposed by the SDR Portugal Association will create more than 1,500 direct and indirect jobs. At a time when the national plan is to meet the European targets to which Portugal is obliged, this incentive system aims to more than double the quantity of recovered packaging and contribute to strengthening the national capacity for recycling PET.
Lisbon, December 03, 2021 – SDR Portugal is a non-profit association that aims to create and manage the future Deposit Refund System (DRS), to be implemented in Portugal as indicated in Portuguese legislation, covering non-reusable plastic beverage packaging, metal, and glass. With the aim of encouraging citizens to return single-use packaging and thereby ensuring maximum efficiency in recycling, avoiding resource wastage, and preventing waste incineration and/or landfilling after consumption, SDR Portugal will apply for the license or management concession, as defined by the regulator, which will establish it as the Managing Entity of the future system.
The SDR Portugal Association consists of the companies Coca-Cola, Central de Cervejas, Sumol+Compal, Super Bock Group, and Unilever (comprising the Circular Drinks Association), as well as the retail brands Auchan, Intermarché, Lidl, Pingo Doce, and SonaeMC (forming SDRetalhistas). 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 DRS, 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 or concession). Nationwide, the proposed system envisions the deployment of 3,600 reverse vending machines, retrieval equipment with integrated technology that accepts used packaging. In addition to installation in large retail outlets (2,600), the proposed system aims to collect packaging deposited at more than 90,000 points to be set up in traditional retail and HORECA channels.
Leonardo Mathias, president of SDR Portugal, says:
“Our mission is to provide an efficient and effective collection and recycling system that will result in consumer satisfaction and high rates of valorisation and recycling in line with the principles of the circular economy. It is our goal to contribute to an effective change in the behaviour of consumers/ citizen, encouraging greater participation in waste separation and an increase in the quantity and quality of recyclable materials. We believe that the Deposit Refund System that the SDR we propose will bring clear benefits to the industry, individuals, and the environment.”
Additionally, the President of SDR Portugal emphasizes that this system will ensure
“equal treatment for all its customers, whether they are producers, importers, or retailers.”
The proposed Deposit Refund System (DRS)
The proposed deposit system aims to ensure the achievement of European and national recycling targets. To do so, it creates the necessary conditions to maximize the circularity of used materials and ensure the production of high-quality recycled raw material (rPET), ultimately preventing incorrect disposal of beverage containers and littering.
By maximizing convenience for consumers – through the availability, speed, simplicity, accessibility, and reliability of the service it provides – it encourages and facilitates behavioral change, enabling the country to address environmental challenges and meet the targets set out in Directive (EU) 2019/904 for plastic beverage packaging (a return rate of 77% by 2025 and above 90% from 2029 onwards; a recycled material incorporation rate in beverage bottle production of 25% by 2025 and above 30% from 2030).
Comprising the main Packagers (Producers and Distributors) and with national coverage, the DRS aims, at the same time, and thanks to the scale effects achieved, to manage an efficient system; reduce the complexity of the registration system for covered packaging; benefit the principle of ensuring equity among Packagers operating in the market; and make the consolidation process of collection results less complex and more transparent.
This initiative, which falls within the framework of Extended Producer Responsibility (EPR) for managing waste from their own products, thus guarantees a system that ensures the environmental responsibility of all these companies promoting it, taking into account, in particular, the obligation of Packagers to bear the costs of packaging waste management and the fact that they are the primary stakeholders in the effectiveness and efficiency of the DRS operation.
According to Leonardo Mathias, “through a disruptive model that allows, in less than two years, to reverse the cycle of stagnation observed for many years in the selective collection of packaging, Portugal can achieve the targets it is obligated to meet. The model we propose is more efficient, will lead to better resource utilization, reduce landfilling, and the incineration of waste. The approach we present is comprehensive and complementary, meaning it aims to integrate the best capabilities of each of the various existing waste management systems (SIGRE / SDR / Reuse). We believe that this is the path to having a cleaner country with a lower environmental impact.”
SDR Portugal argues that all current stakeholders in the packaging sector can provide competitive advantages by actively participating in different parts of the service chain associated with the future SDR. This includes setting up and operating return points, streamlining the logistics of returned materials, and ensuring economies of scale across the entire national territory and autonomous regions.