My question is about the deposit return scheme, DRS. What percentage of plastics and cans that are collected via the scheme are processed here and what percentage are processed abroad?

I thank the Deputy for the question. The deposit return scheme was introduced in February 2024 to encourage higher recycling rates for plastic bottles and cans and to help Ireland meet its EU recycling targets.

Since becoming fully operational in June 2024, the scheme has delivered strong results. According to Re-turn, the scheme operator, Ireland achieved a 66% collection rate in 2024, which has since increased to 76%, based on rolling averages in early 2025. This puts us firmly on track to meet our EU target of 77% by the end of the year.

Under the single-use plastics directive, producers must use 25% recycled content in PET bottles by 2025, increasing to 30% by 2030. The DRS is critical in supplying the high-quality recyclate that is needed to meet the targets.

While the collection and recycling of containers returned is an operational matter for Re-turn, I can confirm that all material collected is first processed at its contracted facility in Limerick. From there, it is sent to licensed facilities in Ireland, the UK or Europe for final recycling. In 2024, 34% of PET collected was recycled in Ireland, with the remaining 66% exported, primarily to the UK and the EU. This reflects current market capacity and the need for specialised facilities to handle high-grade recyclate. Importantly, one of the long-term benefits of the DRS is the potential to establish Ireland's first bottle-to-bottle recycling plant. This would allow us to retain the economic value of this material, reduce reliance on exports and further strengthen our circular economy.

It is very important that this was sold as an environmental measure. It is clear that a significant volume of material is leaving the country. Does the Minister of State have an assessment of the emissions in that regard? What work is he undertaking to ensure we have the capacity and facilities available in this country?

The reality is that Ireland currently does not have a facility capable of fully recycling PET bottles into new food-safe drinks containers. Some operators do look at the processing of PET into flakes. That said, the DRS has created a consistent stream of high-quality recyclate. Re-turn is actively exploring the viability of establishing Ireland's first bottle-to-bottle recycling plant. Building a stable supply chain is a direct dividend of the scheme. There is a strong strategic opportunity here also, both economically and environmentally, to ensure that such a plant is established in Ireland.

I agree that such a plant should be established but the introduction of the plant should have happened in advance of the scheme. There is a great deal of inconvenience involved. A significant amount of money is going to a private company, which gives rise to a number of questions that I hope we will soon address. It is very important that a bottle-to-bottle recycling plant be set up. Does the Minister of State have a timeline for when the facility will be made available and be able to process the material in this country?

The Deputy should bear in mind that the current technical capacity was not in place previously. The scheme was only introduced in June 2024.

The company had to establish a supply chain to strategically invest in a facility of this type. Thanks to the DRS, we now have a supply chain and market conditions that are favourable and make economic sense to establish a facility like this. We are all in agreement that we need develop it, but this was not a policy failure. The initiation of the scheme has provided huge benefits, and we know that from many litter studies around the country. Indeed, there is a current supply chain where 33% of all PET is recycled in Ireland currently. We have to look at how we can keep the remainder on the island and ensure it goes back into a more circular system bottle to bottle.