Safeguards to Prevent Disposable Carrier Bag Charges from Becoming Profit-Generating Mechanisms

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.

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.