Single-Use Disposable Beverage Cups Charge: Island Communities Impact Assessment Report: Pre-Consultation Interim Report

2. Step one – Develop a clear understanding of your objectives

What are the objectives of the policy, strategy or service? What are the intended impacts/ outcomes and how do these potentially differ across the islands?

A priority in a more circular economy is to avoid unnecessary waste and use fewer resources. In recent years, there has been a significant increase in the use of single- use disposable beverage cups, and it is estimated that 388.7 million single-use disposable beverage cups were placed on the market in Scotland in 2021-22. This equates to 71 single-use disposable beverage cups per capita per year, one of the highest compared to European Union nations^[1]. Within this report it is estimated that around 62% of these items were used for hot drinks and 38% for cold beverages.

The Circular Economy (Scotland) Bill, passed unanimously by the Scottish Parliament in June 2024, gives Scottish Ministers new powers to require suppliers of single-use items to charge a minimum amount for such items, through the introduction of a new section 87A into the Climate Change (Scotland) Act 2009^[2], with the policy aim of reducing consumption and therefore reducing the environmental harm caused^[3]. The Scottish Government intends that an early use of such powers will be to introduce a minimum charge on single-use disposable beverage cups. This is in line with our draft Circular Economy and Waste Route Map which includes ‘reduce and reuse’ as one of the four strategic aims, with a commitment to introduce a charge on single-use disposable beverage cups by the end of 2025.

This interim report is published alongside a consultation document setting out our proposals for how a minimum charge on single-use beverage cups would look. In that document we propose that:

• a charge of at least 25p should apply to all single-use beverage cups when an individual buys a drink of any kind, to maximise coverage and ensure the charge is easily understood;
• the charge will apply regardless of cup material, and therefore would include cups made of biodegradable material or bio-based plastics. While it can be argued that these are more sustainable than traditional plastics, they are still single-use and present their own sustainability challenges including a lack of recycling infrastructure and frequency of littering;
• that there will be a limited number of exemptions based on purpose or setting, for instance in schools and when a drink is bought from a vending machine;
• retailers should be able to retain reasonable implementation costs from the charge, in line with the approach taken for the single use carrier bags charge; and that net proceeds of the charge should be used for the advancement of environmental protection or improvement, or to any other purposes that may be reasonably regarded as analogous.

This approach aligns with the Scottish Government’s commitment to keep pace with or exceed the EU Directive on single-use plastics (Single-Use Plastics (SUP) Directive - Directive (EU) 2019/904) where able to do so and in a manner that contributes towards maintaining and advancing standards^[4]. Article 4 (consumption reduction) of the Directive requires necessary measures to be taken to achieve an ambitious and sustained reduction in the consumption of single-use plastic cups for beverages (and food containers). Under the Single-use Plastic Products (Scotland) Regulations 2021, a ban on some of the most problematic items, including single-use cups made of expanded polystyrene (EPS), came into force in Scotland in June 2022.

To support the development of a single-use disposable beverage cups charge, the Scottish Government established the Single-Use Disposable Cups Charge Advisory Group to provide advice and expertise on development of a minimum charge on single-use beverage cups^[5]. The group undertook further stakeholder engagement to gain more insight into key issues, and commissioned a research paper ‘Consumption of Single-use Disposable Beverage Cups in Scotland’^[6]. The paper was published in June 2023 and lays out single-use disposable beverage cup usage in Scotland, potential impact of a charge, as well as international examples of alternative reusable cup schemes.

This builds on the work of the Expert Panel on Environmental Charging and Other Measures (EPECOM) which reported on single-use beverage cups in 2019^[7]. The Panel concluded that:

“Environmental charges, notably price-based interventions, have been shown to be effective at reducing consumption and should be considered in tandem with other preventative measures. The Panel believes that a charge is more effective at reducing consumption and increasing reusable cup use than a disposable cup discount”^[8].

Loss aversion theory shows individuals have a higher sensitivity to potential losses than to gains^[9]. This would mean that charging for products has a stronger impact on behaviour change than offering a discount.

The Scottish Government seeks to make regulations requiring suppliers of single-use disposable beverage cups to charge a minimum amount for these items. The policy aim is to reduce consumption, and therefore reduce the environmental harm caused. This will support the overall ambition to tackle our throwaway culture by avoiding unnecessary waste and to use fewer resources. This aligns with a wider ambition to promote reusable alternatives as part of the shift towards a circular economy in Scotland.

The proposed charge is intended to apply across Scotland and does not specifically target particular groups, geographical locations or sections of society. It is, however, important to consider that the charge may impact people and locations differently. Further information on the proposed charge can be found in the consultation document.

Methodology

Prior to consultation, a preliminary scoping workshop was conducted by Zero Waste Scotland and the Scottish Government’s Circular Economy Division and the Islands Policy Unit. The workshop identified a limited number of potential impacts and so a proportional desk-based approach was taken to source existing data and evidence.

Summary of activities:

• Framing workshop: Zero Waste Scotland and Scottish Government discussion, as noted above.
• Evidence-gathering: quantitative and qualitative data and evidence were sourced, including evidence from existing large Scotland- and UK-level surveys and evidence from other relevant policy impact assessments.