Scheme launches innovation fund to transform paper cup recovery

The UK’s largest paper cup recycling initiative has unveiled a £45,000 project fund aimed at tackling one of the most persistent single-use waste challenges. The National Cup Recycling Scheme (NCRS), administered by Valpak by Reconomy, is inviting organisations, businesses, and community groups to apply with innovative solutions that prevent cups from ending up in landfill.

Applications are open until 31 October, with the winner set to be announced in December.

Investing in scalable solutions

The fund will support projects that can either capture and recycle on-the-go paper cups more effectively or accelerate acceptance of cups in kerbside schemes. According to scheme manager Hannah Osman, the initiative is designed to spark ideas that can scale across the UK.

“This new fund is a major investment to encourage innovation in cup recycling infrastructure and reuse. We are hoping to trigger scalable ideas that will make a real difference in the future,” she said.

The competition is open to a wide spectrum of applicants, including collaborations between businesses, academic institutions, and local communities.

Three priority areas

Proposals are expected to align with one of three focus areas:

• Awareness campaigns: Creative initiatives that drive behaviour change and promote cup recycling in workplaces, public spaces, or at large events.
• Recycling infrastructure improvements: Innovative solutions to enhance cup collection and sorting in high-footfall locations such as transport hubs, shopping centres, and stadiums.
• Research and evidence building: High-quality research projects addressing key challenges in paper cup recycling, such as recyclability, recovery rates, and feasibility of kerbside collections.

Shortlisted applicants will receive not only financial backing but also expert guidance. Support will include help refining proposals, introductions to relevant stakeholders, and preparation for the final pitch to a judging panel made up of NCRS brand members.

Industry-wide collaboration

The NCRS is funded by some of the UK’s most recognisable brands, including Costa Coffee, McDonald’s, Pret a Manger, Caffè Nero, Lavazza Professional, Greggs, and Burger King. The scheme brings together retailers, waste management firms, and paper mills in a rare cross-industry collaboration.

Since its launch, the initiative has helped recycle more than 233 million paper cups. Recovered fibre from these cups has been transformed into new products such as packaging, stationery, and Remembrance Day poppies, demonstrating the versatility of recycled material.

Circular economy momentum

The launch of the new fund comes amid growing pressure on the food and beverage sector to address single-use packaging waste. Paper cups, while often perceived as recyclable, present technical challenges due to their polyethylene lining. As a result, many still end up in general waste streams.

Recent years have seen increased investment in specialist reprocessing facilities and the development of collection points in retail outlets and transport hubs. However, cup recovery rates remain limited compared to overall consumption.

By focusing resources on innovation and awareness, the NCRS hopes to close this gap and build momentum toward a more circular system.

Driving industry standards

The scheme is administered by Valpak, the UK’s largest environmental compliance body and a subsidiary of Reconomy. With more than 2,000 business clients, including major retailers such as Aldi, Tesco, and ASOS, Valpak has been central to advancing waste reduction strategies across multiple sectors.

Valpak’s expertise spans compliance with packaging, WEEE, and battery directives, as well as data-driven consultancy. The organisation invests heavily in systems such as its Product Data Hub and Insight Platform, tools that help businesses assess and improve product design for sustainability.

Its parent company, Reconomy, is a global circular economy specialist. Through a tech-enabled, people-powered approach, Reconomy supports companies in optimising resources, reducing waste, and embedding circularity into supply chains.

A sector under scrutiny

Disposable packaging continues to face scrutiny from both policymakers and consumers. The UK government has already taken steps with initiatives such as the plastic bag levy and restrictions on certain single-use plastics. Campaign groups have also highlighted the environmental cost of disposable cups, estimated at more than 2.5 billion used each year in the UK alone.

While some retailers have experimented with discounts for reusable cup users, the uptake of reusables has yet to reach mainstream levels. Industry-backed schemes like the NCRS play a critical role in bridging the gap by ensuring cups that are used are more effectively collected and recycled.

Looking ahead

With a December announcement planned for the winning proposal, the NCRS hopes to showcase solutions that can serve as models for wider adoption. The ambition is to accelerate the UK’s progress toward a circular economy where materials such as paper cups are kept in use for as long as possible.

Further details on how to apply can be found via the scheme’s dedicated platform: Beyond the Bin Fund | Recycling Paper Cups.