DSD published its 2003 Environment Performance Balance last week documenting the scheme's performance last year. It showed a year of mixed fortunes for DSD, the German packaging waste compliance scheme.
The company reported meeting its recycling targets, but had its operation reduced by the mandatory deposit scheme and encountered difficulties in tendering its contracts for recycling (see letsrecycle.com story). Its business has also been affected by two new competitors that use its infrastructure and Green Dot symbol.
In 2002, 6.32 million tonnes of packaging was recycled through DSD but following the introduction of the deposit system on certain one-way drinks containers in January 2003, this figure fell to 5.99 million tonnes in 2003.
For most of the materials, DSD achieved a recycling rate above 100% because it included unlicensed materials it collected through its green dot kerbside collection scheme.
The one-way drinks packaging that came under the deposit scheme, such as cans and some PET bottles, has been taken off the system resulting in a reduced scope for DSD.
DSD's chief executive officer Hans-Peter Repnik said: “We have reacted to the new situation. In a changed market setting, we have clearly fulfilled the recycling targets, thus making an important contribution to environmental protection.”
But last week, the German deposit scheme received a damning blow from the Advocate General to the European Court of Justice (see letsrecycle.com story), bringing into question its long term future.
In 2003, DSD began tendering for some 450 contract area for collecting and recycling obligated packaging looking for them to commence this year. However due to complications including an investigation by the German Federal Cartel Bureau, DSD has so far only awarded contracts covering 50% of the German population. Even so it estimates that these contracts should make savings of around 100 million euros.
The remaining 50% of the contracts have now been retendered but are not due to signed until the end of August
Competition
Originally, DSD was the only packaging compliance scheme operating in Germany but now due to competition laws two more companies have been launched.
Mr Repnik said: “The ongoing business year, too, is presenting great challenges. Intensifying competition is one of these. In the meantime, two competitors in two regional states of Germany have received so-called exemptions, and can now operate there as further Dual Systems in addition to our company.”
He added that these competitors are making use of both the Green Dot license mark and the infrastructure developed and financed DSD. Although this move was support by the European Commission, DSD is awaiting clarification by the European Court of First Instance.
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