Waste collection companies in Ireland are considering raising prices for recycling bin collections due to significant financial losses caused by the Deposit Return Scheme (DRS). Since the scheme started in February, companies report losing valuable plastic bottles and aluminium cans, which were previously sold as high-value recyclables.
Companies used to sell these bottles and cans, which are worth a lot of money. Now, they are losing millions of euros. To cover these losses, companies might raise the prices for green bin collections. The waste industry is discussing the issue with the Department of the Environment, Climate and Communications. Waste companies want more subsidies or the right to claim back deposits on bottles and cans found in green bins.
Repak, responsible for collecting fees from packaging producers to subsidize recycling costs, clarified that existing subsidies cover recyclables not included in the DRS. The department spokesperson highlighted that pricing decisions by waste collectors fall within the competitive market framework overseen by local authorities.
Losing up to €15 million a year is a big hit for the industry. Higher costs for green bin collections might be passed on to customers.
The government is working with the Irish Waste Management Association (IWMA) to understand the impact of the DRS. They note that some waste collectors had already increased prices before the DRS started.
The IWMA suggests a digital system where people can scan bottles and cans at home to get their deposit back.
