Beverage Container Deposits

 WELL-DESIGNED DEPOSIT PROGRAM | OPINION EDITORIALS ON IMPORTANCE OF DEPOSITS | LEARN MORE ABOUT DEPOSITS 

Can Manufacturers Institute (CMI) is committed to achieving ambitious national recycling rate targets for aluminum beverage cans starting with a 70 percent rate by 2030. While the U.S. aluminum beverage can recycling rate in 2020 was an industry-leading 45 percent, reaching this target will require effective policy solutions, the foremost tool being beverage container deposit return systems (DRS). 

DRS play a vital role in raising the aluminum can recycling rate. A national deposit system would have significant climate, economic and industry impacts, as detailed in the graphic below based on Reloop research findings. Specific to aluminum, a 90 percent redemption rate in a national deposit system would mean an additional 813,000 tons, or 67 billion individual aluminum cans, would be collected and recycled annually.

 


CMI and The Aluminum Association (AA) have taken the step of co-authoring key elements that the two associations believe will create an efficient, effective DRS. These elements are based on insights gathered over many months from deposit experts from industry, government and non-profit organizations, as well as best practices from programs inside and outside of the United States. CMI and AA will continue to refine these as the associations learn more and dialogue further with key partners.     

A well-designed deposit program incorporates the below critical elements. A more detailed version can be found in this guidance document from CMI, the international circular economy non-profit Reloop and the advocacy organization U.S. Public Interest Research Group.

  • Easy and convenient redemption to encourage consumer participation
  • Private run entity manages the system with government oversight that ensures redemption targets are met and violations of the law are enforced
  • Unredeemed deposits remain within the program for investments in consumer convenience and program efficiency
  • Ensure a level playing field and higher recycling rates for all beverage containers by including the full range of beverages and all common beverage packaging material types and volumes in the deposit system. Only minimal exemptions should be allowed
  • Fees charged to the private sector to pay for the system cost need to vary by material type and accurately reflect each material’s cost of container collection, storage, and processing
  • Vary the deposit rate based on container size to avoid market-distorting incentives
  • Use clear labeling anywhere easily seen on the container and technology to reduce fraud and unfairness 

CMI is advocating for beverage container deposit programs both at the national and state levels to catalyze the passage and implementation of well-designed beverage container deposit systems. While a national program based on the elements listed above is the desired outcome, states may be able to implement DRS more quickly and should consider regional approaches in program design.


The following are Opinion Editorials authored by CMI on the importance of deposit systems:

     


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