my country uses up to 4 billion disposable beverage cups annually. To reduce waste at the source, the plastic restriction regulations that will take effect on July 1st will not only impose a NT$5 price difference on bringing your own beverage cups, but also require chain convenience stores and fast food restaurants to provide free recycling cup lending services in their stores starting next year (2023). With only six months left, can recycling containers become another way out for bringing your own beverage cups?
The supply side of recyclable containers includes three major roles: manufacturing, cleaning, and logistics. Song Yizhen, co-founder of "Hao He Qi," a recyclable container rental service provider, said in an interview with the Environmental Information Center that the biggest lack at present is companies that provide cleaning services.
Fast food restaurants and convenience stores will offer free reusable cups starting in 2023, but supply shortages hinder implementation.
Taiwan's plastic restriction policy has taken another step toward banning plastic. According to the Environmental Protection Agency's new plastic reduction regulations, starting July 1st, chain beverage stores, convenience stores, fast-food restaurants, and supermarkets must offer a price difference of at least NT$5 between customers who bring their own beverage cups and those who don't. Furthermore, starting January 1st, 2023, chain convenience stores and fast-food restaurants must also meet the first phase goal of offering free "reusable cup" lending services in 5% of their stores.
This is the first time that the concept of "recyclable container use" has been incorporated into regulations, and businesses are facing a completely new market for recyclable containers. At a meeting held by the Environmental Protection Agency this year to discuss beverage cup restrictions, fast food operators pointed out that the market supply is insufficient, and that recyclable containers may face a situation where "supply exceeds demand."
Song Yizhen, co-founder of "Hao He Qi," a recycling container rental service provider, admitted that in the past, there had never been any regulations that included recycling containers. Most recycling container rental services were pilot programs on a small scale, usually jointly promoted with the Environmental Protection Agency or local environmental protection bureaus. The government provided funding and provided recycling cups free of charge to stores willing to participate in the program. It was also difficult to develop a sustainable business model.
For example, the regulations include "cleaning companies" but no option for "cleaning recycling cups". Haoheqi has to find a central cleaning site that cooperates with schools or corporate group meals, and then discuss a new recycling cup cleaning model.
A large-scale reverse logistics system needs to be established, and the scope of recycling container services is still limited.
Although regulations stipulate that the recycling cup service will not be launched until January of next year, Song Yizhen said that many businesses have come to negotiate. She is also optimistic that once the regulations incorporate the concept of recycling containers, there will be an opportunity to promote it as a permanent business model.
However, at this stage there are still issues such as logistics, education and training that need to be resolved.
For example, after the recycling cups are returned, they are not sorted into boxes like other clean cups. They must first be sorted before they can be sent to the logistics truck. The reverse logistics and forward logistics systems are strictly distinguished. "You can think of it as the difference between a logistics truck and a garbage truck." Song Yizhen described it.
Nowadays, even chain convenience stores and fast food restaurants with complete logistics systems still lack a complete reverse logistics mechanism, which has become the key to the operation of the recycling cup system.
Song Yizhen pointed out that for a logistics system to operate cost-effectively and efficiently, it relies heavily on a logistics dispatch center. However, the recycling cup system's service coverage is limited, and the establishment of a large-scale logistics dispatch center is likely still some way off. For example, Haoheqi's partnerships with fast-food chains and convenience stores are an example. Since Haoheqi handles the reverse logistics process, its services are limited to convenience stores where Haoheqi has direct operations.
Source: Environmental Information Center (https://e-info.org.tw/node/234435)
