The Deposit Refund Scheme will encourage the take-back and recycling of packaging, such as plastic bottles and aluminium cans. 

Singapore, 4 March 2020 – The National Environment Agency (NEA) will be implementing a Deposit Refund Scheme (DRS) for beverage containers by 2022 as the first phase of the Extended Producer Responsibility (EPR) approach for packaging waste management. Packaging waste, including plastics, is one of Singapore’s priority waste streams due to its high generation and low recycling rate.¹  

Deposit Refund Scheme by 2022

2     A DRS has been implemented in several countries such as Norway, Sweden and Germany, achieving a high recycling rate of beverage containers of over 80 per cent. Generally, under a DRS for beverage containers, producers would finance the take-back of the used beverage containers with refunds offered to consumers when they return their empty beverage containers to designated return points.

3     NEA will start industry consultations in early 2020 and put up a Request for Information to gather industry feedback of the proposed DRS framework for implementation by 2022. The insights and information gathered will aid in the development of a framework suitable for Singapore’s context. 

Developing Singapore’s Plastic Recycling Industry

4     Singapore currently has mechanical recycling plants to treat our industrial plastic waste. The DRS will aggregate post-consumer plastic waste, such as PET beverage bottles, and provide a steady supply of feedstock for recycling. This will drive demand for recycling and create a viable industry in Singapore to turn our post-consumer plastic waste into valuable resources. The Ministry of the Environment and Water Resources (MEWR) and NEA have thus been working closely with the economic agencies to actively engage companies who are interested to set up mechanical recycling plants to treat post-consumer plastic waste. 

5     To fully close the plastics loop, we are also pursuing chemical recycling solutions to treat plastics which are not suitable for mechanical recycling, such as contaminated plastic bags and other single-use plastics. Chemical recycling can potentially convert these plastics into higher-value products, such as pyrolysis oil, which is a potential feedstock for Singapore’s petrochemical sector. MEWR and NEA are working closely with government and industry partners to look into establishing a pilot plant that will contribute to and help anchor the chemical recycling value chain in Singapore within the next few years. If successful, Singapore will be able to create “NEWOil”, and strengthen our resource resilience, just as NEWater has and what is aimed with NEWSand.

6     The EPR is a circular economy approach to packaging waste management. Coupled with the development of our local recycling landscape, the EPR will enhance Singapore’s resource resilience by turning more of our trash into treasure. It will also bring Singapore closer to our target under the Zero Waste Masterplan of reducing the amount of waste per capita sent to landfill by 30 per cent by 2030.

7     At the same time, investing in new recycling technology and developing the industry will create economic opportunities for Singapore, with the potential to create jobs for Singaporeans, such as those in process, mechanical and chemical engineering. 

Mandatory Packaging Reporting framework 

8     The mandatory packaging reporting requirements under the Resource Sustainability Act will commence from 1 July 2020. Companies that supply regulated goods into the Singapore market, such as manufacturers and importers of packaged products, as well as retailers such as supermarkets will be required to report data annually on the amount of packaging that they put into the market. They will also need to develop 3R plans for packaging (i.e. plans to reduce, reuse or recycle packaging). For a start, the mandatory packaging reporting requirements will apply to companies with an annual turnover of more than $10 million. Companies will start collecting packaging data from 1 July 2020 and submit their first data and 3R plans to NEA in 2021. Refer to Annex A for information on the packaging covered under the framework and Annex B for the types of packaging that companies must include in their reports.

9     To support companies in fulfilling their obligations, NEA will partner with the industry to develop a joint capability development programme. NEA will host workshops and training courses to familiarise companies with the reporting framework. The programme will also be a useful platform for companies to exchange best practices in sustainable packaging waste management. More information of the programme will be released by 2Q 2020. 

[1] In 2018, about 1.56 million tonnes of waste disposed of in Singapore came from domestic sources. Of this, about one-third consisted of packaging waste. Approximately 55 per cent of the packaging waste comprised plastic packaging, whilst 25 per cent comprised paper packaging. The remaining 20 per cent was made up of other types of packaging materials, such as metal and glass.

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