NSW Container Deposit Scheme. Network Operator Role
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- Derick Rose
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1 NSW Container Deposit Scheme Network Operator Role
2 OVERVIEW 1. Introduction to TOMRA & Cleanaway & the Joint Venture 2. CDS in Australia & Objectives 3. The Deposit as a Financial Incentive 4. Innovating for Successful Outcomes 5. A Supportive Design and Regulatory Framework 6. Current Activities 7. Q & A 2
3 TOMRA was founded on an innovation in 1972 that began with the design, manufacturing and sale of reverse vending machines (RVMs) for automated collection of used beverage containers. * Listed on Oslo Stock exchange Strong financials 4,300 employees 86,000 installations in 80+ markets Sorting technologies inc. mining & food 3
4 Cleanaway - Our Credentials We lead the Market in Waste Solutions CLEANAWAY ENVIRONMENT FUND SUPPORT SUSTAINABLE COMMUNITY INITIATIVES FOR THE REDUCTION OF GREENHOUSE GAS EMISSIONS
5 CDS IN AUSTRALIA Northern Territory 2012 West Australia 2018 Queensland July 1st, 2018 New South Wales Dec 1st, 2017 South Australia 1977 Existing deposit scheme (CDS) Implementing CDS this year Decision made to implement CDS, will follow NSW 5
6 OVERVIEW OF THE NSW CDS NSW Container Deposit Scheme: Going Live Dec 1 st 2017 Scheme goal: Reduce littering by 40% by 2020 Convenience is key to World Class Scheme promised by former Premier Mike Baird Beverage suppliers (incl. own labels) to finance the scheme Service providers to the scheme will be compensated for handling, transport, processing, compaction, data NSW alone represents a deposit money flow of ~AUD $350m PA NSW is the first densely populated state to introduce a CDS Roles in the NSW CDS scheme Supplier Supplier Supplier Scheme Coordinator (SC) MRF MRF MRF Network Operator (NO) Network Operator (NO) Collection Point (CP) Collection Point (CP) Collection Point (CP) Collection Point (CP) Collection Point (CP) Collection Point (CP) Scheme Coordinator (SC): Financial management, community education, auditing/verification Network Operators (NO): Collection, logistics, recycling 6
7 KEYS TO SUCCESS - Widespread, Easy and Convenient Redemption Options - Public Awareness and Engagement vs 7
8 NEED FOR FRESH THINKING AND INNOVATION TOMRA working with Cleanaway to provide a Portfolio of Solutions to match different market segment needs 1 Automated Collection Points 2 Manual Collection Points 3 Automated Depots New infrastructure and investment Existing infrastructure Charities, Social enterprises, Councils, Small businesses New & existing infrastructure Charities, Social enterprises, Councils, Businesses 8
9 NEED FOR FRESH THINKING AND INNOVATION TOMRA working with Cleanaway to provide a Portfolio of Solutions to match different market segment needs 1 Automated Collection Points 2 Manual Collection Points 3 Automated Depots New infrastructure and investment Existing infrastructure Charities, Social enterprises, Councils, Small businesses New & existing infrastructure Charities, Social enterprises, Councils, Businesses 9
10 ELEMENTS OF A MODERN REVERSE VENDING SYSTEM User communication Recognition system Sorting & processing Data administration 10
11 RVM EXAMPLE IN USE 11
12 CONVENIENT AUTOMATED COLLECTION POINTS 1 Automated Collection Point 12
13 MINIMAL EFFORT REQUIRED BY CONSUMERS Litter reduction and high recovery rates, driven by: 1 Automated Collection Point Positive consumer experience at Automated Collection Points using state-of-the-art Reverse Vending Machines (RVMs) Convenient locations at destination sites, which consumers are already visiting frequently Convenient extended opening hours Various refund options available, incl. vouchers, electronic payments and donations Minimal extra effort required - Consumers simply add the recycling activity to their regular habits Engagement of the community (schools, charities, community groups, sports clubs etc) through fundraising opportunities. 13
14 TOMRA BULK COLLECTION SOLUTIONS Redemption of larger volumes (from hospitality sector, schools, charity bottle drives etc): Industrial scale identification and sorting technology Data management for system integrity and reporting 3 Automated Depots TAKES ALL TOMRA Flow Technology handles containers other technologies can t. This opens new possibilities for what can be collected. CONNECTED Benefit from instant data availability and a rich set of data distribution channels to suit your need. RELIABLE High percentage of uptime, sorting and counting accuracy. Easy to clear possible jams. SCALABLE Up to 16 sorting destinations can be added to the basic equipment to meet business growth and market requirement changes. 14
15 BULK COLLECTION SOLUTION IN ACTION 15
16 CONSUMER ENGAGEMENT: DRIVER FOR VOLUME Every bottle counts every consumer matters ReAct platform enables a wide range of services for recycling consumers. From e- cash and donations to loyalty features and gamification; ReAct makes recycling easier, engaging and personal - for everyone Initiatives will involve local businesses, schools and sport clubs to establish consumer engagement programs to drive awareness and participation rate Aims to generate public awareness and targets behavioural change through education 16
17 TOMRA REACT 17
18 CONSUMER ENGAGEMENT - EXAMPLE Schools are invited to participate in the Bottle Return Challenge, competing against each other to collect & return the most beverage containers during the campaign period. 18
19 REGULATORY FRAMEWORK IS VITAL TO A SUCCESFUL CDS - Aligning Incentives through - Strong Regulations - Targets and Enforcement - Facilitating and Supporting Investment in Convenient Infrastructure - Appropriate Value Chain and Verification System to Harness Technology - Streamlined Planning Processes 19
20 NETWORK OPERATOR - CURRENT TASKS A number of significant milestone to deliver successfully: - Establish collection point network - Automated Collection Points & Manual Collection Point network - Ensure PCA s marry with identified partner sites - Consumer convenience enabled - Finalising auditing & verification program - Scheme integrity is paramount - Processes for Manual Collection Point requirements will guide participation levels 20
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