New research by Eunomia and the University of the Western Cape (UWC) has found that a mandatory Deposit Return System (DRS) in South Africa could deliver significant environmental and economic benefits – from a net reduction in greenhouse gas emissions to increased recycling, less litter and new jobs for waste reclaimers.

The study, co-funded by the Alliance to End Plastic Waste and the Norwegian Embassy, explored the feasibility, costs and benefits of a DRS given South Africa’s geography, retail environment and large informal waste sector. It found that the environmental savings and economic benefits outweigh the fees that beverage producers would pay to operate the system.

In a DRS, consumers pay a small deposit when they buy a beverage in a container, such as a bottle of water. They receive a refund when they return that container, which is then recycled. DRS already operating in various countries demonstrate that this works as a financial incentive for consumers to return used containers and for waste reclaimers to recover them and claim the deposit.

The study involved on-the-ground research into the country’s informal economy, using interviews and workshops with waste reclaimers to share findings and gather their feedback on DRS design options. It also involved surveying informal retailers and buy back centres (which buy recyclable materials) to understand the beverage market and current recycling rates.

It found that a DRS tailored to meet South Africa’s needs could significantly boost collection, especially for plastic and glass bottles. Charging a deposit of ZAR 1 could mean that up to 90% of containers are collected – a rate that exceeds the country’s current Extended Producer Responsibility targets – and an additional 305-477 thousand tonnes of these are recycled.

The study highlights the need for further research, trials and pilot phases to reduce uncertainties and risks arising from the country’s specific circumstances. To work optimally, a South African DRS should be carefully designed following best-practice principles drawn from global experience. Establishing a single, producer-led, non-profit system operator would diminish the risks of fraud and market fragmentation.

Each year, South Africa generates 2.4 million tonnes of plastic waste – 41 kilograms per capita, compared to the global average of 29 kilograms per capita. A bespoke DRS could substantially reduce litter, so fewer containers end up in landfill or oceans. It could improve local air quality and annually cut 119-294 thousand tonnes of greenhouse gas emissions associated with manufacturing new containers and treating waste. This would accelerate the Government’s drive towards sustainable production and consumption, as expressed in its 2020 publication A Circular Economy Guideline for the Waste Sector.

A DRS could also deliver socially just economic benefits for South Africa. In the informal sector, it could generate up to 31.5 thousand new jobs for waste reclaimers. Their incomes would increase by up to 38%, as they would receive a fixed price per container instead of a variable price per kilogram of material. Handling source-segregated material instead of picking through waste on landfills and in refuse bins would reduce their exposure to hazards. In the formal sector, a mandatory DRS could create an extra 4.6-8.7 thousand formal jobs across the beverage supply chain.

The project built on a 2022 workshop led by the World Wide Fund for Nature, which identified general support for DRS among stakeholders (retailers, brand owners, academia, government, non-governmental organisations and waste reclaimers) but also raised questions about its potential advantages. The study tackled those questions by comparing the costs and benefits of a DRS operating in a steady state against current waste collection in South Africa.

The full report and a series of supplementary reports presenting technical detail are available at: https://tinyurl.com/3ydmytt6