The Northern Territory government has reinstated its cash for containers program despite losing a Federal Court challenge earlier this year.
The NT introduced a 10c refund on cans and bottles last year, but was taken to court by Coca-Cola Amatil, Schweppes Australia and Lion Pty Ltd to prevent the scheme going ahead under the Mutual Recognition Act, which allows companies to do business the same way in all states and territories.
But the Federal Executive Council on Monday decided to exempt the NT from the Act, voiding the bottling industry's court win.
"We're proud to have secured the future of this popular environmental measure," NT Environment Minister Peter Chandler said in a statement.
The Territory government had been funding the program at a cost of $1 million a month since February while lobbying other state premiers to support its bid for exemption.
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The NT is only the second jurisdiction in Australia to operate a cash for containers scheme after South Australia, which has had one in place for about 35 years, and it has given the state an 83 per cent recycling rate at double the national average.
James Lorenz, communications manager for Greenpeace, said similar schemes were in place all over Europe, the USA and Latin America.
"It's come under enormous pressure from the bottling industry because I think they see it as an inconvenience for them, and any kind of inconvenience they come down really strongly against," he told AAP on Wednesday.
In the year the scheme has been operating in the NT, recycling rates have tripled to 67 per cent, Mr Lorenz said, and the recycling industry says a national scheme would bring in $500 million in investment and 3500 new jobs.
"It's a win-win for everybody," he said.
Federally, the Council of Australian Governments (COAG) is costing a national scheme, with its findings due in October.
A study conducted by Local Government NSW found local councils across the country could save up to $183 million per year in recycling costs if a national cash for containers scheme was introduced.
Mr Lorenz says 14 billion bottles and cans are used each year in Australia, 8 billion of which end up in landfill.
"A lot of them end up in rivers and streams and they have a massive impact on Australian birds, particularly seabirds who end up eating the plastic," he said.
Pressure is now on for Victoria and NSW to follow the NT's lead, Mr Lorenz said.
"It's on a knife edge in NSW, but there's so much public support and benefit that hopefully the government will listen to the taxpayers rather than the bottling industry."
Coca-Cola Amatil has been contacted for comment.
