Although Wales will not be able to notify the World Trade Organisation (WTO) in relation to the scheme at this point, the nation will continue to develop a DRS which “delivers for Wales”.
Defra sent the labelling requirements to the WTO for the England and Northern Ireland schemes in May this year.
In a written statement released today (18 November 2024), Irranca-Davies said that the decision was made due to issues “caused by the United Kingdom Internal Market Act 2020”.
He added that the problem has been inherited by the Labour government from the previous Conservative administration.
The Internal Market Act has been a consistent issue in the road to a UK DRS – with the exclusion of glass from the formal exemption leading to the Scottish scheme being delayed last year.
It is likely that today’s announcement is linked to the inclusion of glass, which the Welsh government has said it is intent on including in the scheme. Glass will not be included in the schemes for Scotland, England and Northern Ireland.
In the written statement Irranca-Davies added: “As a government, we remain committed to bringing forward a DRS which will deliver for Wales by supporting our ongoing transition to a circular economy. Our active engagement with industry has highlighted that there are currently a range of views on how best to achieve the transition to reuse.
“We will therefore continue our active engagement to develop a scheme that supports the transition to reuse for all drinks containers including those made from glass. In doing so we will also continue to draw from international best practice.”
The Welsh government is yet to confirm the timeline for the implementation of its DRS.
A UK government spokesperson commented after the announcement: “We are committed to delivering a Deposit Return Scheme across England, Northern Ireland and Scotland, which will go live in October 2027.
“We will continue to work collaboratively with the Devolved Governments and industry to ensure our scheme works for businesses and consumers, while creating thousands of green jobs, driving investment into new infrastructure and moving towards a circular economy.”
Reactions to the news
Both LARAC and The Recycling Association (TRA) have used the announcement as an opportunity to call for the DRS to be paused or axed entirely. TRA chief executive Paul Sanderson labelled the scheme a “folly”.
Jenni Hume, UK and Ireland director at circular economy charity Reloop, said: “Reloop has long supported the Welsh government’s ambition for a deposit return scheme that includes glass and reuse as that has the most environmental benefits. We understand the complexities facing the Welsh government and frustrations that the UK government would not work with the Welsh government to achieve this.
“It is now up to Defra, Daera, Scottish government and industry to ensure that the deposit return scheme moves along at pace for England, Northern Ireland and Scotland with no further delays. We also hope to see clarity and tight timelines from Welsh government imminently.”
British Soft Drinks Association Director General, Gavin Partington, added: “We regret the Welsh government’s decision which undermines efforts to deliver an aligned Deposit Return Scheme across the UK and help the move towards a circular economy. We remain committed to a DRS for cans and PET delivered by October 2027 and will continue to work with governments to achieve this.”
Jane Martin, CEO of charity City to Sea, warned that the DRS is turning into “utter chaos”. She continued: “After flip flopping around on whether glass should be included, we have now successfully lost the entire Welsh nation.
“A DRS which includes glass, plastic and aluminium is not a contentious issue amongst the public, with recent data showing that 77% agree the government should introduce an ‘all in’ system. It now just seems to be policymakers who can’t agree on that view.
“With both Wales and Scotland backing a glass inclusive DRS, Labour needs to get on board to stop the scheme from crumbling all together.”
The Federation of Independent Retailers (the Fed) has expressed surprise and some concerns at the Welsh government’s decision to press ahead with its own deposit return scheme for bottles and cans and not to join a UK-wide deposit return scheme (DRS).
The Fed’s National President Mo Razzaq commented: “While we applaud Wales’s desire to make its deposit return scheme a success, we would prefer to see one single scheme for the UK.
“Interoperability across the UK is vital, so that anyone buying a drinks can in England will have the confidence that they can return it in Wales.
“A single UK-wide scheme would be far more successful, efficient and effective, enabling shoppers to understand and embrace DRS as quickly as possible.”
A spokesperson for Keep Wales Tidy commented in support of the news: “Back in 2006, Keep Wales Tidy called for a mandatory Deposit Return Scheme (DRS) for plastic, glass, and metal drinks containers. Eighteen years later, we remain disappointed by the UK Government’s decision to exclude glass from their plans.
“Keep Wales Tidy fully supports the Welsh Government’s decision to leave the UK Government’s (DRS), allowing them to implement a scheme that aligns with Wales’ bold ambitions for recycling and reuse. Wales continues to lead where others lag, championing an all-in system that reinforces our reputation as global recycling leaders.
“While the delay is frustrating, this decision is ultimately the right one for Wales in the long term. With some of the highest recycling rates in the world, adopting a system that excludes glass would not only offer poor value for money but also significantly reduce the scheme’s potential impact.
“A well-designed DRS is good for nature, good for communities, and good for our future economy. Let’s get it done.”
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