Safeguards to Prevent Disposable Carrier Bag Charges from Becoming Profit-Generating Mechanisms
Ministry of Sustainability and the EnvironmentSpeakers
Summary
This question concerns Ms He Ting Ru’s inquiry into the policy rationale for not ring-fencing disposable carrier bag charges and the safeguards preventing them from becoming profit-generating mechanisms. Minister Grace Fu Hai Yien stated the charge aims to reduce excessive bag usage, resulting in a 70% to 80% decrease at supermarket outlets. She clarified that proceeds are not mandated for specific uses to avoid disadvantaging operators who incur costs, though transparency is maintained through mandatory annual reporting on bag supply and fund allocation. Minister Grace Fu Hai Yien noted that most proceeds are currently channeled toward environmental or social causes, such as supporting lower-income families and sustainability projects. The Government will continue monitoring the use of these proceeds and encouraging supermarket operators to contribute towards environmental and social initiatives.
Transcript
29 Ms He Ting Ru asked the Minister for Sustainability and the Environment in relation to the disposable carrier bag charge (a) what is the policy rationale for not ring-fencing proceeds for environmental purposes; (b) whether the Ministry has assessed the risk of such charges becoming profit-generating mechanisms; and (c) if so, what safeguards are in place to prevent this.
Ms Grace Fu Hai Yien: The objective of the disposable carrier bag charge is to nudge consumers to reduce the excessive use of disposable carrier bags. The disposable carrier bag charge has helped supermarket operators achieve a 70% to 80% reduction in the number of bags issued at their supermarket outlets.
Merchants, including supermarket operators, incur costs in providing disposable carrier bags for their customers. Many merchants already charge for such bags on their own accord, either as part of their sustainability initiative or as a commercial decision. To avoid disadvantaging the supermarket operators, the National Environment Agency has decided not to mandate specific uses for proceeds collected through the implementation of the disposable carrier bag charge.
Supermarket operators who are obligated to implement the disposable carrier bag charge are required to publish information annually on the number of disposable carrier bags supplied, amount of proceeds collected and how the proceeds are used. This ensures transparency and public accountability.
Thus far, the large majority of proceeds collected has been channelled towards environmental or social causes, including initiatives to support lower-income families. The proceeds have also allowed some supermarket operators to embark on sustainability projects. The Government will continue to monitor the use of proceeds by the supermarket operators and encourage them to channel the proceeds to environmental or social causes.