Scottish National Investment Bank has pledged to invest £9 million into Circularity Scotland Limited, the administrator of the Scotland’s Deposit Return Scheme (DRS).
The bank’s investment will also help in securing an additional £9m capital from Bank of Scotland. Together the investments will fund the start-up costs of Circularity Scotland.
The DRS is currently scheduled to go live in August 2023.
“We are pleased to be able to support the roll out of the Deposit Return Scheme in Scotland by investing in Circularity Scotland. Increasing recycling rates is a vital component in Scotland’s transition to net zero, one of the bank’s key missions,” Mark Munro, executive director, sustainable investment at the bank, said.
Circular Economy Minister Lorna Slater welcomed the investment.
“This is a tremendous vote of confidence in Scotland's deposit return scheme, which will be the first of its kind in the UK and one of the most environmentally ambitious and accessible in Europe,” she said.
“By capturing billions of bottles and cans every year for recycling, it will make an important contribution to our response to the climate crisis. I look forward to working with Circularity Scotland as they use this funding to deliver Scotland’s deposit return scheme, which will go live nationwide in August next year.”
David Harris, chief executive at Circularity Scotland, added: “We are delighted to be working with Scottish National Investment Bank and Bank of Scotland.
“Their investments alongside those already received from industry will support our work in providing Scotland with the most comprehensive and efficient Deposit Return Scheme in the world.”
The Federation of Independent Retailers (The Fed) has also welcomed the development.
Commenting, the Fed’s national president Narinder Randhawa said: “This investment is a show of confidence in and support for all the work being done to deliver the anticipated increase in recycling rates from August next year.
“As responsible retailers, the Fed’s members in Scotland will be on the frontline of the deposit return scheme (DRS). Unless exempted, they will form the backbone of the network of Return Points, where customers will bring their bottles and cans for the refund of the deposits.”
