Deposit System for PET Bottles and Cans – Strengthening the Czech Economy!

Prague, December 5, 2024, a discussion seminar titled “Do We Need a Deposit System for PET Bottles and Cans?” was held at the Chamber of Deputies of the Parliament of the Czech Republic.

The seminar was held under the patronage of MP Michaela Opltová (STAN), MP and Chairman of the Budget Committee Josef Bernard (STAN), and MPs Václav Král (ODS), Jiří Slavík (TOP 09), and Karel Smetana (KDU-ČSL). The seminar was jointly organized by Business for Society together with INCIEN (Institute of Circular Economy) and Arnika.

The Ministry of the Environment of the Czech Republic has submitted to the government an amendment to the Packaging Act to introduce a deposit system for selected single-use beverage containers — PET bottles and cans. The government approved the proposal at its meeting on October 10, 2024. The amendment reflects the current "Waste Management Plan," the government’s program statement, and the new "Circular Czechia 2040" strategy.

It also responds to the upcoming European Union regulation on "Packaging and Packaging Waste" (Packaging and Packaging Waste Regulation – PPWR), which, among other things, mandates a deposit system. The deposit system for PET bottles and cans will not disrupt the existing waste separation system but will logically complement it. The proposal envisages launching the entire system in 2027. The amendment is currently under discussion in the Chamber of Deputies.

The deposit system for PET bottles and cans will significantly influence the development of the circular economy in the Czech Republic and will strongly support building an innovative economy with higher added value. This would join the Czech Republic with 16 European countries where such systems are already successfully operating. Experience shows that deposit systems are an environmentally friendly solution that reduces natural resource waste by enabling material reuse for new PET bottles and cans, cutting energy consumption by up to 95% and carbon emissions by 80%.

International Experience – Denmark:

In 2022, Denmark achieved a 92% return rate for plastic bottles and cans. This success is the result of joint efforts between large and small businesses, supermarkets, and kiosks, making it easy for consumers to participate in recycling initiatives. By prioritizing circular economy practices, Denmark conserves natural resources, reduces pollution, and mitigates climate change, saving approximately 223,000 tons of CO2 in 2022 alone.

At the beginning of the seminar, MPs Michaela Opltová and Josef Bernard (STAN) spoke, highlighting strong public support for the deposit system for PET bottles and cans.

Michaela Opltová emphasized the need for dialogue, communication, and thorough consideration of all impacts and benefits in the public debate about the Packaging Act amendment and the deposit system. “It is not about pushing one single solution. It’s about responsibly discussing the topic, considering all implications and benefits, and arriving at a decision that benefits everyone – municipalities, businesses, and our planet,” she concluded.

Josef Bernard highlighted the groundbreaking and innovative nature of introducing the deposit system for PET bottles and cans into the Czech economy.

“The deposit system in Parliament is a bit like the Bermuda Triangle. Its introduction would reduce the carbon footprint, improve recycling efficiency, cost taxpayers nothing, and most citizens want it. Yet, the law might still fail to pass, due to political irrationality,” said Josef Bernard, Chairman of the Budget Committee.

Minister of the Environment Petr Hladík also emphasized the deposit system's innovative potential to trigger further circular economy processes in the Czech Republic and to positively influence the country’s economic development toward modern trends. He stated that the deposit system could become a significant social and economic benefit for the Czech Republic.

The Ministry of the Environment has prepared a balanced proposal, considering all stakeholders in the waste management system. The deposit will cover both PET and aluminum containers, with aluminum offering even better recyclability.

The proposed system aims to prevent packaging waste, increase collection rates for PET bottles and cans, and reduce the amount of waste ending up in nature.

“Implementing a deposit system for PET bottles and cans will have positive impacts on our economy, municipalities, and nature. Every year, we lose material worth half a billion CZK. Without a deposit system, companies will face higher costs, passing them onto consumers. Now is our chance to set our system; if we wait, we will have to comply with EU regulations regardless,” concluded Minister Petr Hladík.

International Experience – Norway:

Norway’s deposit system is highly popular and respected throughout the value chain, from manufacturers to retailers and consumers. It is one of the most efficient systems globally, achieving a 97% recycling rate for sold PET bottles.

Other speakers included Petr Bartoň, a data economist from the Datarun platform, who pointed out the deposit system's economic and anti-inflation potential. He explained that implementing the deposit system would not speed up beverage price increases but might actually slow inflation slightly.

Jan Brožek, Mayor of Černovice and Member of Parliament, stressed the need to innovate waste management systems. He noted that a deposit system would drastically reduce litter and connect manufacturers directly with recycling obligations. “Municipalities cannot meet strict recycling targets without deposit systems. Foreign experience shows immediate positive results,” he concluded.

Kristýna Havligerová from the Initiative for Deposit Systems presented important data related to the current system of waste sorting and recycling. More than half of PET bottles and three-quarters of cans end up in landfills or incinerators, according to commentary accompanying the amendment to the Packaging Act. 75% of PET bottles are sorted, but only 17% are recycled into new packaging. For cans, only 30% are sorted, and none are recycled into new packaging. "A deposit system will ensure at least a 90% return rate for PET bottles and cans, which will then be used to produce new beverage containers, without requiring any public funding. In many countries where a deposit system is in place, such as in Scandinavia or the Baltic states, return rates of 90% or higher are achieved." In her presentation, she also highlighted the consequences of insufficient plastic waste recycling. Since 2021, the Czech Republic has paid CZK 7.1 billion to the EU budget for unrecycled plastics.

International Experience – Sweden

Sweden introduced a deposit system in 1984. The system is operated by the organization Returpack, which was jointly founded by the Swedish Brewers Association and the Swedish Grocery Retailers' Federation. Selected beverage containers must be part of an approved recycling system in order to be sold in Sweden.

The positive readiness of the Czech public for the introduction of a deposit system for PET bottles and cans has been repeatedly confirmed by an exclusive survey conducted by the renowned research company IPSOS. "More than two-thirds of the population across all generations support the introduction of a deposit system for PET bottles and cans," stated @Michal Straka from IPSOS in his presentation.

After the first part of the seminar and the presentations, an open discussion was held among the participants. Present were not only supporters of the deposit system for PET bottles and cans but also opponents, who participated with several lengthy contributions. After the break, in the final part of the seminar, representatives from environmental and expert organizations INCIEN, Arnika, Změna k lepšímu (Change for the Better), and Business for Society presented their views.

Petr Novotný, expert consultant from the Institute of Circular Economy (INCIEN), highlighted several important economic and social aspects and benefits of the planned deposit system for PET bottles and cans, specifically that:

• 100 to 150 million CZK is the current value of PET bottles and beverage cans sold by municipalities. The total annual value of beverage container materials recycled through municipal systems is 263 million CZK, but only 18% of municipalities sort and sell this material to processors.

• The majority of municipalities hand over all collected material to waste management companies and instead pay high disposal costs. 120.7 million CZK – this is the net annual gain municipalities could achieve with the introduction of the deposit system. They would lose revenue from material sales, but this would be offset by contributions from unclaimed deposits, increased payments from EKO-KOM, and savings from reduced mixed waste volume.

• 2,000,000 m³, or 1,800,000 full containers – this is the annual volume of partially crushed PET bottles and cans ending up in municipal waste systems.

• 270 million CZK are the costs borne by cities and municipalities for the space occupied by beverage containers in waste bins (150 CZK per emptying), and another 50 million CZK for the disposal of beverage packaging that ends up in mixed municipal waste (2000 CZK/t).

• Public space cleaning of beverage containers in public waste bins costs about 60 million CZK annually. Altogether, municipalities could save around 380 million CZK by implementing a deposit system and removing beverage containers from municipal waste systems.

• 451.6 million CZK – the value of PET bottles and aluminum cans currently ending up in landfills or incinerators without being utilized. The deposit system would allow this material to be recovered and reused.

• 500 million CZK – the amount the Czech Republic could save annually by not having to pay EU penalties for unrecycled plastics. This is the sum currently lost due to PET bottles placed on the market but not recycled.

According to the figures presented, the majority of the costs related to the inefficiency of the current beverage container collection system are borne by municipalities and the state, while much of the profit from selling raw materials goes to waste management companies. In economic terms, the current system generates significant negative externalities, hidden and dispersed among all residents of the Czech Republic, while the profit is relatively low and concentrated mainly in private waste companies.

"The deposit system can eliminate many of these negative externalities and ease the financial burden on municipal budgets. The costs of building and operating the deposit system will not be borne by the state or municipalities but will be fully covered by those directly involved – beverage producers, retailers, and consumers buying beverages in single-use packaging," emphasized Petr Novotný at the end of his presentation.

International Experience – Lithuania

The Lithuanian deposit system is relatively new but works very well. Over 93% of customers are satisfied with it. The system was introduced in 2016 and has since collected nearly 5 billion beverage containers, amounting to 190,000 tons. 100% of the collected waste is recycled. Lithuania's deposit system for plastic bottles and cans is considered a clear success from environmental, consumer, and beverage industry perspectives.

Sarah Ožanová from the traditional environmental organization Arnika and Gabriela Měsícová from the platform Change for the Better focused in their presentations on the environmental, economic, and social benefits that the deposit system could potentially bring.

Introducing a deposit system could, within a short period, divert tens of thousands of tons of valuable materials from landfills, and their value, exceeding CZK 400 million, could become one of the resources helping to finance a more efficient deposit system.

The deposit system will be fair in that its costs will be borne by beverage producers, retailers, and only those citizens who purchase beverages in containers but do not return them. If people buy packaged beverages, they should also be responsible for returning the packaging to a designated location, or allow the deposit to be claimed by someone else who does. People who do not buy beverages in containers will not bear the costs of the deposit system. The costs will be jointly covered by beverage producers and retailers, not by citizens or the state budget, as is often mistakenly claimed.

At the conclusion of the seminar, Pavel Štern from Business for Society briefly summarized the key outcomes and information presented. He highlighted the exceptional opportunity for the Czech economy to kickstart innovative trends in other sectors and industries through the introduction of a deposit system for PET bottles and cans. He also pointed out the undeniable economic, environmental, and social benefits of the deposit system for all stakeholders, including beverage producers (with strengthened competitiveness), retailers, municipalities, and, not least, the general public — who show strong support for the introduction of a deposit system for PET bottles and cans, as repeatedly emphasized in the speakers’ contributions and subsequent discussion.

To conclude, one more piece of international inspiration for the Czech Republic: Denmark’s commitment to reducing waste, conserving resources, and promoting economic growth aligns with the Danish government's global responsibility to address environmental challenges while ensuring a competitive and resilient economy for future generations. Through collaboration between producers, consumers, and recycling systems, Denmark achieves a high return rate, further enhancing the economic viability of recycling initiatives.