BEAR/Multi-Stakeholder Recovery Project Report

Understanding Beverage Container Recycling: A Value Chain Assessment

Report Highlights/Key Issues

Will 2002 be remembered as the year that industry and environmentalists came together and produced a report that broke through long standing biases and allowed cost-effective new and expanded deposit systems to be implemented? This may be the outcome of the BEAR/Multi-Stakeholder Recovery Project report!

The BEAR/MSRP process produced a report, Understanding Beverage Container Recycling: A Value Chain Assessment, which was unveiled January 16, 2002 at the annual National Recycling Coalition Congress in Seattle.

We believe this report is historic. It can give environmentalists, elected officials and policymakers the data they need – from an unimpeachable source – to close the case for deposits.

This summary briefs you with the KEY POINTS arising from the report. The complete report is available at www.globalgreen.org/bear and can be linked too from www.grrn.org/beverage/deposits/index, a site that also has information on model deposit systems.


WHY SHOULD WE BELIEVE THIS REPORT?

· It was produced under the watchful eyes of both the beverage industry and environmentalists (see ‘Who Produced the Report,’ below)

· The data were gathered by leading researchers who often work for the beverage industry.

· It provides a fact-based foundation on which to develop a beverage container recycling system that will double the current beverage container recycling rate to 80% and be cost-efficient for the beverage industry.

· It draws attention to the problem of declining beverage container recycling rates and increased wasting.

· It provides hard numbers that confirm the superior performance of deposit/return programs, over curbside recycling and drop-off collection.

· It identifies revenues that can offset the cost of deposit programs: money from the sale of the used bottles and cans and deposit money left in the system by consumers who choose not to return their containers for refunds (unredeemed deposits)

· It shows how when these revenues are factored in, deposit programs are less costly than curbside programs -- at no cost to local taxpayers.

· It shows that some deposit programs have discovered cost-saving features that increase efficiency and reduce costs over traditional deposit programs (e.g. eliminate sorting by brand through a common fund, open up the system to other return centers besides retail stores, use automated reverse vending machines for container returns.)

IF YOU LIVE IN A DEPOSIT STATE/Columbia MO:

· The report confirms the effectiveness of your program, showing how much more effective it is than curbside programs or drop-off collection;

· The report points the way to possible ‘tweaking’ that could be done if necessary to make the program less costly to the beverage industry

IF YOU LIVE IN A NON-DEPOSIT STATE:

· The report shows how much better you could be doing: up to 80% recycling rather than your current recovery

· The report suggests that your timing is good: your state can now benefit from new information to design a program that is both effective and economical to operate

* Hawaii’s bottle bill – HB 1256 – has been designed to include all the key elements identified in the BEAR report.


WHO PRODUCED THE REPORT?

BEAR (Businesses and Environmentalists Allied for Recycling) was formed nearly 2 years ago by businesses who needed more PET bottles to use in manufacturing carpetand environmentalists who wanted to reduce the waste of beverage containers. BEAR made a commitment to determine strategies capable of achieving 80% recovery of beverage containers for recycling.

In May of 2002, BEAR became a project of Global Green USA: GG is a group affiliated with Gorbachev’s Green Cross International, which tries to bring people together to foster a global value shift toward a sustainable and secure future

The first stage in BEAR’s work was the Multi-Stakeholder Recovery Project (MSRP): an effort to use a fact-based process to achieve consensus on strategies to achieve BEAR’s goal of 80% container recycling.

The MSRP Task Force included Coca-Cola North America; their plastic bottle making cooperative, Southeastern Container; Waste Management, Inc.; Beaulieu of America (maker of carpet with recycled PET plastic bottles); Tomra North America (maker of reverse vending machines); and the Minnesota Office of Environmental Assistance. Environmentalists were represented by Grassroots Recycling Network and the Container Recycling Institute.

The MSRP retained a team of leading consultants to carry out research that was ultimately published in the Understanding Beverage Container Recycling report. The authors are: R.W. Beck (lead consultant group), Franklin & Associates , Tellus Institute, and Sound Resource Management.

WHAT DID THE REPORT SAY?

Beverage container recycling rates in the U.S. are down, wasting is up.

Ø 78 billion beverage containers (277 per capita) recycled in 1999

Ø 114 billion beverage cans and bottles (407 per capita) not recycled in 1999

Ø only 41% of containers sold are recycled, the rest are wasted.

Beverage container recycling has environmental benefits.

Ø Avoided greenhouse gas emissions

Ø Energy savings

Ø Avoided landfill space

Deposit systems get the best results.

Ø Deposits: 422 containers per capita recycled in the 10 deposit states,

373 containers per capita recycled in California

Ø Curbside:127 containers per capita recycled in the 40 non-deposit states

Ø Residential drop-offs: 31 containers recycled per capita in non-deposit states

Beverage container recovery has a net cost that must be covered by some type of funding mechanism.

Ø Deposit programs (including California): funded by producers and consumers

Ø Curbside programs: funded by local governments and taxpayers

Net costs per container recovered in 1999 (including revenue from sale of scrap material)

Ø Traditional Deposit Programs: 2.21 cents

Ø California Deposit Program: 0.55 cents

Ø Curbside Programs: 1.72 cents

Ø Residential Drop-Off Programs: 0.30 cents

When unredeemed deposits are used to cover costs in deposit programs, net costs are as follows:

Ø Traditional Deposit Programs: 0.80 cents

Ø California Deposit Programs: (0.43) cents (profit)

Ø Curbside Programs: 1.72 cents

Ø Residential Drop-Off Programs: 0.30 cents

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© 2005 City & County of Honolulu's Department of Environmental Services.