It is hoped a new returns scheme for drinks containers would see Kiwi recycling rates lift from around 50 to 80 per cent.

An estimated two billion single-use beverage containers are sold in New Zealand each year with only about half of them recycled.

However, work has begun on a container return scheme (CRS) that aims to significantly change the way bottles are recycled.

Just under $1 million from the Waste Minimisation Fund will be poured into the CRS, Associate Minister for the Environment Eugenie Sage said.

"This is the latest step in the Government's plan to recharge New Zealand's recycling system," she said.

"A container return scheme would change the way New Zealanders see beverage containers.

"They would again become something of value, and we would see increased recycling and new opportunities for refilling."

A joint application for the design and development of a national CRS was submitted by the Auckland Council and Marlborough District Council.

The successful applicant would see the two councils work with the Ministry for the Environment and representatives from the beverage industry.

Other councils, retailers, charitable organisations, Māori, consumer representatives, and product stewardship groups would also pitch in.

The project would help Kiwis further make a difference in reducing waste, Sage said at the WasteMINZ Conference in Hamilton.

"A CRS would require beverage containers, such as plastic PET bottles, to carry a refundable deposit, for example, 10 to 20 cents or more.

"The deposit is redeemed when the container is returned to a collection depot or other drop-off point."

The ministry is aware of at least 40 other such return schemes operating globally, with most Australian states housing a facility.

A comprehensive CRS proposal for New Zealand will be designed and presented to the Government by August next year.

Kerbside collections will not disappear but a scheme is expected to affect the types and amounts of recyclables collected.

"A well-designed beverage container return scheme would be a win for consumers, the environment, councils, and recycling industries," Sage said.

What else does the project aim to do?

• Make it easier and more convenient to return containers anywhere in New Zealand;

• Design a solution that is cost-effective and efficient;

• Improve the quality and marketability of recyclables;

• Create new opportunities for employment, community participation and fund-raising for charities.