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Cash for Trash: Stop Your Containers from Turning into Ash!
- Kate Lau and Han Yi Heng
- Feb 4
- 8 min read
IN THIS EXPLAINER, FIND OUT…
What is the Beverage Container Return Scheme?
Why was the scheme introduced?
Will the scheme be effective in achieving Singapore’s green goals?
Introduction
Want to earn some extra cash for your eco side quests? Sick of recycling for free? The Beverage Container Return Scheme (BCRS) has your back!
From April 2026, you will pay an extra ten-cent deposit for pre-packaged drinks made out of plastic and metal. But here’s the catch — recycle them at designated return points or reverse vending machines, and the ten cents will be yours again.
Years in the making, could BCRS be the solution to raise our recycling rates and cure our environmental woes? Read on to find out why BCRS is being introduced to Singapore; how exactly the policy works; and how likely it is to be effective in achieving its goals.
Why Was The BCRS Introduced?
To Build Better Green Habits
As part of the 3Rs (Reduce, Reuse, Recycle) Campaign promoted by the National Environment Agency (NEA), BCRS hopes to encourage consumers to not only recycle more but also recycle right.
In 2023, only five per cent of plastic waste generated in Singapore was recycled, falling short of the global rate of nine per cent. This indicates that Singapore can do to raise this number. Furthermore, 40 per cent of items in Singapore's recycling bins unfortunately cannot be recycled. This is largely due to the contamination of unrecyclable materials in recycling bins (e.g., food, liquids, styrofoam etc.), putting much of our recycling efforts to waste. Ultimately, BCRS steps in to ensure that more high-quality and clean materials can be successfully recycled.
To Extend Semakau Landfill’s Lifespan
Our only active landfill, Semakau Landfill, is more than half-full and is projected to reach maximum capacity in 2035. BCRS can help extend the lifespan of Semakau Landfill by reducing the amount of recyclable waste being incinerated. The scheme is thus a step in the right direction in Singapore’s journey towards sustainable development.
How Will The Scheme Work?
How Consumers will be Affected
Under BCRS, consumers will pay a refundable ten-cent deposit for buying pre-packaged beverages in plastic and metal containers. This includes beverage containers ranging from 150 millilitres (e.g., a mini canned soft drink) to three litres (e.g., a large bottle of water). Freshly prepared drinks (e.g., bubble tea, freshly squeezed juices) are not included in the scheme because of their relatively small market share, and their containers lack the barcodes needed for deposit refunds.
The deposit will be fully refunded when consumers return empty beverage containers at designated return points such as manual return points at large supermarkets and automated reverse vending machines. Consumers can receive the refund through cash over-the-counter or electronic transfer, or choose to donate the deposit to charity.
The deposit is not subject to the Goods and Services Tax (GST) and will remain at ten cents until future review by NEA.
How Producers will be Affected
Extended Producer Responsibility (EPR) Approach
BCRS adopts an Extended Producer Responsibility (EPR) approach, similar to the polluter pays principle. This means that producers are accountable for managing pollution created from the products they put on shelves. For the BCRS, importers and manufacturers of beverage products are required to pay for and operate the collection of empty containers. This holds them responsible for the end-of-life management of their products, overseeing the disposal or recycling of containers.
Role of Scheme Operators
A key role in BCRS is that of the Scheme Operator. In July 2024, NEA issued a licence to Beverage Container Return Scheme Limited (BCRS Ltd.), an industry-led not-for-profit company, to design and operate the scheme as the Scheme Operator. BCRS Ltd. is a consortium comprising three major beverage brands: Coca-Cola Singapore Beverages, Pokka and F&N Foods. The consortium is responsible for collecting the containers for recycling, on behalf of all beverage producers in Singapore.
The main responsibilities of BCRS Ltd. as the Scheme Operator include:
Establishing a network of more than 1,000 conveniently located return points;
Setting up fair and transparent fees for producers;
Registering producers of pre-packaged drinks; and
Ensuring all beverage containers collected are properly recovered and sent to licensed recyclers.
Moreover, BCRS Ltd. has outlined standardised design guidelines, requiring producers to register barcodes and the BCRS deposit mark as part of their product design. Registered barcodes ensure that containers can be automatically verified at reverse vending machines and sorting centres, while the deposit mark ensures that consumers can visually identify containers that are part of the BCRS.
Overall, BCRS Ltd. seeks to promote accountability and operational efficiency in the scheme's rollout.
Framework
All producers of the relevant beverage products must participate in BCRS. They will register as members and register their beverage products with BCRS Ltd. Producers will then pay fees to BCRS Ltd. to collect and recycle empty beverage containers on their behalf. After receiving the deposits, producer fees, and revenue from licensed recyclers, BCRS Ltd. will then reimburse return point operators for providing deposit refunds, and cover their other operational costs.
Delayed Launch and Implementation
Initially slated to be implemented April 2025, the launch was pushed back at the request of BCRS Ltd. after it needed more time to produce a proposal addressing its operational and business considerations. These considerations include the cost of setting up the system, as well as the location of collection points.
As such, the timeline for implementation has been revised. From 1 April 2026 to 30 June 2026, beverage producers will have a transition period to clear old unlabelled products. Only on 1 July 2026 will the BCRS be fully implemented and only registered and compliant products can be sold.
Cash, or Trash?
BCRS and Recyclable Sorting
Besides reducing waste and cultivating good recycling habits, the BCRS can also address recycling contamination issues. A main issue in Singapore’s recycling efforts is contamination, where otherwise quality recyclables are dirtied to a point where they must be disposed of. With Singapore’s current recycling systems, 60 to 70 per cent of all recyclable waste received is contaminated, which must be incinerated and hinders Singapore’s green efforts. With the BCRS, however, cleaner and more well-sorted recyclables could be guaranteed. To return a beverage, consumers are encouraged to wash and empty them – collection machines could reject containers that are not empty. This resolves the issue at its root, at least in the case of beverage containers.
Limitations to Success
Given the pressing climate concerns today, it is important to question whether the BCRS can actually help to mitigate Singapore’s perennial waste problem.
One common criticism of deposit return schemes is weak cooperation from businesses. The upfront fee of a return deposit may lower the demand for beverages among certain groups of consumers, especially in view of the fast-rising cost of living experienced in Singapore. In addition, firms often point to cost considerations arising from packaging changes, the setup and maintenance of container return infrastructure. Such concerns are just one in a long line of similar sustainability-profit dilemmas faced by corporations today, possibly limiting their cooperation with BCRS’ requirements. The delayed implementation suggests this is likely already the case.
Another potential challenge to the BCRS’ efficacy is the apparent environmental apathy amongst Singaporeans even if they are aware of the issues. A climate index initiative launched by OCBC Bank in 2021 exemplifies this. The index found that while most Singaporeans who use private transport were aware that travelling by car generates more CO2 emissions than by public transport, an overwhelming 78 per cent of them drove for over 30 minutes a day. This dissonance between awareness and action also carries over to issues regarding recycling. According to the NEA, despite many initiatives and campaigns to raise Singaporeans’ recycling rates, the rates unfortunately remain stagnant and even decrease in some years.
This phenomenon may be attributed to Singaporeans’ penchant for prioritising convenience. For instance the centralised refuse chute (CRC), implemented in almost all HDBs and condominiums, allows residents to dispose of waste from the comfort of their own homes. This would discourage Singaporeans from bringing their recyclable trash down to the blue recycling bins. Similarly, if the convenience-over- environment mindset still holds, Singaporeans may simply choose to give up their deposit. This is a likely scenario since consumers are not obliged to return their containers. Worse, ten cents may be too little to incentivise them to return the containers.
Looking Beyond: The German Pfandsystem
A novel scheme like the BCRS lends itself to a dose of helpful scepticism. However, we may look to other countries with successful deposit return schemes to judge the pros and cons of the BCRS more fairly. One such scheme is the Pfandsystem in Germany, whose success has been lauded internationally – return rates for non-reusable beverage containers are close to 99 per cent.
Climate Apathy
In Singapore, low environmental consciousness is arguably one of the biggest constraints to the BCRS’ success. Meanwhile in Germany, ingrained recycling habits have undoubtedly contributed to the success of its Pfandsystem. Germany currently boasts the highest recycling rates in the world. This, of course, did not happen by chance. The German government is especially dedicated to addressing issues of recycling and waste management through strict regulations regarding waste separation. Germans are also highly cooperative and involved, where the task of waste separation is taken on as a serious issue requiring a great deal of consideration and care from citizens. The Pfandsystem is well integrated into the greater recycling culture in Germany. Strong citizen involvement and proactive green behaviour are thus key factors determining the success of deposit return schemes.
Convenience and Accessibility
Another key factor for the Pfandsystem’s success is its robust infrastructure, allowing Germans to access a deposit point almost anywhere. There are 135,000 return locations across the country, and 25 per cent of these are automated Reverse Vending Machines (RVMs). As for the BCRS, NEA proposes that large supermarkets with a total floor area of more than 200 metres squared be mandated to set up return points. Further, a significant one-third of pre-packaged beverages sold in Singapore come from such supermarkets. Thus, collection points need to be in or near these sites. Additional return points would be set up at other locations in the community, totalling around 1,000 locations across Singapore. If successfully carried out, this may help the BCRS win over Singaporeans, where return points are highly accessible and thus convenient to use.
Representing Retailers’ Interests
As for retailers, like the Pfandsystem, Singapore’s BCRS is helmed by a not-for-profit consortium of private companies. Moreover, NEA mandates that at least two board members of BCRS Ltd. be appointed to represent the interests of smaller beverage producers. This mirrors the ownership of the DPG Deutsche Pfandsystem GmbH, owned by the German Retail Federation e.V. (HDE) and the Federation of German Food and Drink Industries e.V. (BVE), with an advisory board of representatives from the trade sector and the drinks industry. Both schemes could better ensure the best interests of retailers and beverage producers are kept in mind, thus helping to find a win-win outcome for both corporations and the government.
A More Robust System
Currently, the BCRS in Singapore only accepts plastic and metal beverage containers. In contrast, the Pfandsystem accepts a wider range of materials, including some glass bottles and even yoghurt containers, more adequately addressing the different sources of recyclable waste.
For the BCRS, the scheme's relative immaturity could suggest that mechanisms for recycling less-common containers, such as non-plastic ones (e.g., glass bottles or cardboard cartons) have not yet been implemented. If the BCRS includes a more diverse line-up of containers for recycling, it could cover more ground and better drive Singapore towards a greener future.
Conclusion
In conclusion, the soon-to-be-implemented BCRS hopes to harmonise Singapore’s green, economic, and social priorities. Through this scheme, consumers are encouraged to recycle more actively through inculcating greater environmental consciousness. It also hopes to foster a sense of corporate responsibility, steering corporations toward greener practices that balance their profit-centricity and the need for sustainable practices.
While the BCRS offers a promising solution to some of Singapore’s pressing environmental concerns, only time will tell if it will truly perform. If successful, the BCRS demonstrates that powerful sustainability initiatives are not necessarily major shifts but small acts, one container at a time.
This Policy Explainer was written by members of MAJU. MAJU is a ground-up, fully youth-led organisation dedicated to empowering Singaporean youths in policy discourse and co-creation.
By promoting constructive dialogue and serving as a bridge between youths and the Government, we hope to drive the keMAJUan (progress!) of Singapore.
The citations to our Policy Explainers can be found in the PDF appended to this webpage.
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