Container Deposit Legislation

A new report shows that we could stop nearly 1 billion drink containers going to landfill every year if a refundable deposit of 10 cents was put on all drink containers. Ratepayers would save $14 million each year in disposal costs by recycling these containers instead of landfilling them. Download the report from here:  "The incentive to Recycle - A Container Deposit System for NZ", April 2007, Envision NZ Ltd.

Container Deposit Legislation (CDL) refers to the mandatory deposit on containers to encourage their return by consumers. Depending on the deposit system, containers can be returned to the manufacturers via the retailer, designated collection depot, reverse vending machines or recovered as part of existing waste or recycling collection system. Any person returning the container receives a standard refund. CDL requires that manufacturers take responsibility for the returned containers either to refill, recycle or to dispose of them.

Originally the deposit refund system was used by the beverage industry as a means of ensuring that their bottles were returned to be washed, refilled and sold. The increase in disposal containers saw the phasing out of deposit systems in most areas in NZ.

Container Deposit Legislation provides consumers with an incentive for returning the container to manufactures for a refund, thus contribute to reduce litter. Whether it is refilled or recycled is dependent on the requirements of the particular legislation.

CDL is currently in place in South Australia, in 10 states in the USA and in several European and Asia countries. Several states in Australia are currently investigating CDL.

The drivers behind CDL have broadened since the 1970s. Today advocates for CDL embrace it as a means to not only litter reduction but as part of a broader approach to waste minimisation, resource conservation and Extended Producer Responsibility (EPR). The responsibility for the container material is placed onto the producers rather than on the government.

CDL is considered a form of EPR (Extended Producer Responsibility). Such a scheme aims to ensure that the responsibilities of both producers and consumers are maintained from production to final disposal or recycling. A CDL system means less pressure and responsibility is placed on local government for managing container waste.

(Source: The Institute for Sustainable Futures, Australia. Go to www.isf.edu.au/CDL_Review for a full review of CDL prepared for the Minister for the Environment for New South Wales, Australia as part of the Waste Act review in 2000-01.)

Container Deposit Legislation (PDF 126 KB)

The Incentive to Recycle - CDL System for NZ, April 2007, Envision NZ Ltd (PDF 369 KB)