The Bank’s investment was key to securing an additional £9m capital from Bank of Scotland. Together the investments will fund the start-up costs of the administrator for Scotland’s Deposit Return Scheme, which will go live in August 2023.

The Deposit Return Scheme will support the Scottish Government’s efforts to help households to return empty, single-use containers for collection for recycling. It will help to tackle climate change, increase quantity and quality of materials collected for recycling, and decrease litter, supporting a circular economy.

Mark Munro, executive director of sustainable investment at the Scottish National Investment Bank said: “We are pleased to be able to support the roll out of the Deposit Return Scheme in Scotland by investing in Circularity Scotland. Increasing recycling rates is a vital component in Scotland’s transition to net zero, one of the Bank’s key missions.”

The investment supports the bank’s mission to support a just transition to net zero and its objective to leverage private capital in its investments.

Circular economy minister Lorna Slater also welcomed the investment. She said: “This is a tremendous vote of confidence in Scotland’s deposit return scheme, which will be the first of its kind in the UK and one of the most environmentally ambitious and accessible in Europe.

“By capturing billions of bottles and cans every year for recycling, it will make an important contribution to our response to the climate crisis. I look forward to working with Circularity Scotland as they use this funding to deliver Scotland’s deposit return scheme, which will go live nationwide in August next year.”

David Harris, CEO at Circularity Scotland, added: “We are delighted to be working with Scottish National Investment Bank and Bank of Scotland.

“Their investments alongside those already received from industry will support our work in providing Scotland with the most comprehensive and efficient Deposit Return Scheme in the world.

“We are committed to being a highly effective and efficient scheme administrator creating exciting employment opportunities and this funding makes that possible.”

Scott Joyce, associate director, at Bank of Scotland, said: “Addressing the sustainability challenges the country faces requires collaboration from within the financing ecosystem.

“So, we were keen to be able to work with the Scottish National Investment Bank on this funding arrangement and ensure Circularity Scotland Limited has the support needed to make a success of its recycling initiatives. We look forward to seeing the scheme go from strength to strength.”