New Eunomia Study: Digital deposit return is a dead end

New Eunomia Study: Digital deposit return scheme is a dead end Download study Why the digital system will not work In its assessment of the digital deposit return scheme, Eunomia indicates that, in the best-case scenario, the digital deposit return scheme is still years away. This is partly due to several problems that are far from resolved: For can manufacturers, it is currently not possible to print unique codes on the cans at the speed at which production lines operate. This entails costs that the industry is not prepared to bear (see page 33). Currently, there is no guaranteed solution that rules out large-scale fraud (e.g. people taking photos of unique codes and claiming the deposit without returning the packaging correctly). There is no way to verify whether the packaging is effectively being collected, which is necessary to ensure the system's success. These are just three examples of the many obstacles demonstrated. The study also points to risks of misunderstanding, for privacy and the risks of jeopardising the European single market, which the proposed digital system cannot prevent. Digital deposit return schemes exclude people [Press release] In 2025, Belgium will also introduce a deposit on cans and plastic bottles. Packaging organisation Fost Plus is particularly in favour of a digital system where citizens must scan the packaging with their smartphone to get their deposit back. Environmental organisation Fair Resource Foundation commissioned Eunomia to investigate the feasibility of this system. “This plan can be shelved: the system excludes many people and will be far from ready for implementation in 2025.” The report is critical of the introduction of a digital deposit return scheme in Belgium. The report draws three main conclusions: It is highly unlikely that the system can be technically implemented, Digital deposit return schemes exclude people, such as those without a smartphone or the underprivileged, The positive impact on the environment is uncertain, whereas the impact of a conventional deposit return scheme is proven to be strong. Chloé Schwizgebel (FRF): “Many unsubstantiated promises are being made about digital deposit return schemes, but the system does not work at all and will not work for the foreseeable future. The Flemish government, which is investigating digital deposits, must not be misled by this yet another attempt by the industry to prevent the introduction of a conventional deposit return scheme.” Eunomia is an international consultancy that also supports the European Commission and has expertise in circular economy and deposit return systems. For this study, they spoke with stakeholders from the beverage sector, the packaging sector, the waste sector, consumer and environmental organisations, and local authorities. Eunomia also raises the question of whether this system, where people with a smartphone must scan QR codes to get their deposit back, is even acceptable to consumers. This is because: A segment of consumers cannot or does not want to use smartphones to get the deposit back. The proposed solutions to narrow the digital divide, such as home scanners, would continue to exclude tourists or people living in poverty, such as the homeless. They would also not solve the “on-the-go” problem. Some people do not want to register because they do not want to share personal data or because the effort is not worth it (e.g. tourists). These risks jeopardise the effectiveness and public support of the system, whereas the conventional deposit return scheme works well and is widely accepted in many countries. Are we going to solve the litter problem with a QR code? Eunomia also warns that this deposit return scheme may not be as effective as a conventional system. The report shows that a conventional deposit return scheme reduces deposit-bearing packaging in litter by at least 85%. In addition, the report states that a conventional deposit return scheme helps the quality of recycling and is also compatible with return logistics for reusable packaging. None of these effects have been proven for a digital deposit return scheme. Its success is also highly dependent on public support. A digital deposit return scheme would have a significantly lower impact on litter because the system excludes people (lower participation), and because packaging in litter may no longer have 'cleanup value', as there is a chance that the QR code has already been deactivated and the deposit has therefore been claimed. Digital deposit return schemes also lead to fewer collected packages and poorer recycling, partly due to the same exclusion of people, as well as the inevitable contamination of collected packaging, partly because collection would have to take place partly via public bins. Chloé Schwizgebel (FRF): “The study has identified numerous problems, making it clear that a digital deposit return scheme is a dead end. Wallonia and Brussels have

Why the digital system will not work

In its assessment of the digital deposit return scheme, Eunomia indicates that, in the best-case scenario, the digital deposit return scheme is still years away. This is partly due to several problems that are far from resolved:

For can manufacturers, it is currently not possible to print unique codes on the cans at the speed at which production lines operate. This entails costs that the industry is not prepared to bear (see page 33).

Currently, there is no guaranteed solution that rules out large-scale fraud (e.g. people taking photos of unique codes and claiming the deposit without returning the packaging correctly).

There is no way to verify whether the packaging is effectively being collected, which is necessary to ensure the system's success.

These are just three examples of the many obstacles demonstrated. The study also points to risks of misunderstanding, for privacy and the risks of jeopardising the European single market, which the proposed digital system cannot prevent.

Digital deposit return schemes exclude people

[Press release]

In 2025, Belgium will also introduce a deposit on cans and plastic bottles. Packaging organisation Fost Plus is particularly in favour of a digital system where citizens must scan the packaging with their smartphone to get their deposit back. Environmental organisation Fair Resource Foundation commissioned Eunomia to investigate the feasibility of this system. “This plan can be shelved: the system excludes many people and will be far from ready for implementation in 2025.”

The report is critical of the introduction of a digital deposit return scheme in Belgium. The report draws three main conclusions:

It is highly unlikely that the system can be technically implemented,

Digital deposit return schemes exclude people, such as those without a smartphone or the underprivileged,

The positive impact on the environment is uncertain, whereas the impact of a conventional deposit return scheme is proven to be strong.

Chloé Schwizgebel (FRF): “Many unsubstantiated promises are being made about digital deposit return schemes, but the system does not work at all and will not work for the foreseeable future. The Flemish government, which is investigating digital deposits, must not be misled by this yet another attempt by the industry to prevent the introduction of a conventional deposit return scheme.”

Eunomia is an international consultancy that also supports the European Commission and has expertise in circular economy and deposit return systems. For this study, they spoke with stakeholders from the beverage sector, the packaging sector, the waste sector, consumer and environmental organisations, and local authorities.

Eunomia also raises the question of whether this system, where people with a smartphone must scan QR codes to get their deposit back, is even acceptable to consumers. This is because:

A segment of consumers cannot or does not want to use smartphones to get the deposit back.

The proposed solutions to narrow the digital divide, such as home scanners, would continue to exclude tourists or people living in poverty, such as the homeless. They would also not solve the “on-the-go” problem.

Some people do not want to register because they do not want to share personal data or because the effort is not worth it (e.g. tourists).

These risks jeopardise the effectiveness and public support of the system, whereas the conventional deposit return scheme works well and is widely accepted in many countries.

Are we going to solve the litter problem with a QR code?

Eunomia also warns that this deposit return scheme may not be as effective as a conventional system. The report shows that a conventional deposit return scheme reduces deposit-bearing packaging in litter by at least 85%. In addition, the report states that a conventional deposit return scheme helps the quality of recycling and is also compatible with return logistics for reusable packaging.

None of these effects have been proven for a digital deposit return scheme. Its success is also highly dependent on public support.

A digital deposit return scheme would have a significantly lower impact on litter because the system excludes people (lower participation), and because packaging in litter may no longer have 'cleanup value', as there is a chance that the QR code has already been deactivated and the deposit has therefore been claimed. Digital deposit return schemes also lead to fewer collected packages and poorer recycling, partly due to the same exclusion of people, as well as the inevitable contamination of collected packaging, partly because collection would have to take place partly via public bins.

Chloé Schwizgebel (FRF): “The study has identified numerous problems, making it clear that a digital deposit return scheme is a dead end. Wallonia and Brussels have already opted for a conventional deposit return scheme. It is now important to work together with Flanders to ensure a single well-functioning national system where sales outlets simply give consumers their money back.

Which deposit return scheme we get in 2025 remains a political decision. 55 cities and municipalities recently voiced their concerns about a digital system. We hope that politicians and policymakers take a close look at Eunomia's study and make a well-informed choice.

[End of press release]

Press contact: Chloé Schwizgebel, +31 643288231 chloe@fairresourcefoundation.org

Photo credit: Shutterstock

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