By: Ahmad Ali Rayyan Shahab *

Beverage containers are not mere petty waste; they can be a paycheck generator. Finland has proven that to encourage recycling, offering incentives is not just important – it is essential. Interestingly, this circular economy is driven by the private sector. This article delves into how the complex system runs and harmonizes business cooperation with environmental preservation.

Since the 1950s, stores across Finland have implemented a deposit-return system for bottles and cans. The program significantly boosted the recycling rate; thanks to the convenience and incentive it offers. This remarkable innovation marked a major advancement in beverage waste management – a breakthrough that remains highly relevant in today’s efforts to preserve the environment. Nowadays, there are almost 5,000 container machines across Finland, most of which are located at shops and kiosks. The concept has been widely integrated and developed across various fields of industry to strengthen the model. Hotels, restaurants, offices, schools, and event organizers return containers through their beverage providers

As the search for a solution became more imminent, the EU imposed a staggering 90 percent recycling target for plastic beverage bottles in 2029. In 2020, two billion bottles were recycled in Finland, amounting to 93 percent of the total bottles purchased. Finland’s success had piqued other countries’ interest in a similar possible approach to beverage waste regulation.

So, How Does It Work?

The key to this system lies in its smart applications of a green economy.

When shoppers purchase a plastic or can-based beverage product, they automatically pay an additional 10 to 40 cents within the price margin. The average payback of each recycled product will equate to the margin inserted on the selling price. After consumption, the recycling machine is ready to obtain the waste through scanning the barcode embedded on the bottles and/or cans. The machine scans, sorts, and crushes the items. Lastly, it issues a receipt that can be exchanged for cash or used toward purchases. Thus, collecting bottles is a second nature, especially among teens and festivalgoers expecting a quick handful of cash. Across Finland, cans are returned at an average rate of 44 per second and plastic bottles at 17 per second. Collectively, recycling generates for consumers hundreds of millions of euros.

The Continuation

Once collected, the returned containers enter the next phase of the recycling journey. After being sorted and compacted by return machines, the materials are transported to processing facilities. There, they are cleaned, further sorted if necessary, and sent to specialized recycling plants depending on their composition Aluminum cans are melted down and reused to create new cans – a process that requires only 5 percent of the energy needed to produce cans from raw material. Plastic bottles (PET) are recycled into new beverage containers or repurposed into other consumer products like textiles and packaging. This closed-loop system minimizes waste and maximizes resource efficiency, turning discarded packaging into a circular economy engine.

Private Sector Interference: Palpa

The system’s fascinating aspect lies on the pillar of private sector independence with minimal government intervention. The deposit-return system is driven by Palpa – a nonprofit company established and owned by major beverage products such as Olvi, Sinebrychoff, and Hartwall, together with 200 other companies. Annually, Palpa generates around 80 million euros. This revenue did not originate from taxpayer money, but from material sales, recycling fees, and charges for non-returnable packaging. This capital supports the operation and maintenance of the approximately 5,000 bottle-returning infrastructure across Finland. Consequently, government provide exemption from packaging taxes towards these companies, granting them a financial incentive to remain compliant and proactive.

Conclusion

This model acts as a glimmer of hope amid the amplifying controversy between capitalistic pursuit and environmental preservation across the globe. When incentives align with values and equipped with a well-designed system that intersect capitalism and climate action, real progress happens. Finland had proved that synergy between both opposing forces is not impossible – and the solution depends on whether we wish to act.

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* Ahmad Ali Rayyan Shahab is environment enthusiast, a student of MAN Insan Cendekia Pekalongan who is currently attending AFS Student Exchange Program 2024-2025 at Lahden Lukio Gaudia, Finland.

Source:

  1. a) Waste and recycling
  2. b) Circular economy success: Finland’s recycling programme keeps bottles and cans off the streets – thisisFINLAND

 

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