Bendigo Sustainability Group member Elsie l'Huillier said the cash for containers scheme is an environmental no-brainer and called on the state government to consider handing its implementation to local municipalities and groups.

"In some areas, there are active groups capable of doing all of the community's collecting and there's no need for a private provider," Ms l'Huillier said.

"There are other contexts where private collection systems are needed and councils can be part of that negotiation process."

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Slated for implementation in 2022/23, the CDS provides a refund for empty drink containers that are returned to an approved refund collection point.

A small monetary deposit will be applied to beverages sold to consumers, which covers the recycling cost.

Upon return of the empty beverage containers, the consumer is provided a deposit refund.

A Victorian Container Deposit Scheme discussion paper, published by the Department of Land, Water and Planning, estimated that 2.9 billion beverage containers are consumed in Victoria each year, with consumption increasing by one per cent per year.

Victorian charities and community organisations including the Good Friday Appeal, Scouts Victoria, Netball Victoria, YMCA and Football Victoria, among others, are calling for the state to implement a community model for Victoria's CDS, similar to what operates in Western Australia, Queensland and South Australia.

In those states, community groups, local sporting clubs and charities collect recyclables and pocket the refund, whereas Victoria's model will more closely align with that used in NSW, where a larger portion of the refund is retained by the recycling organisation.

Beverage manufacturers Lion Nathan and Coca-Cola Amatil set up VicRecycle, to lead the campaign for a not-for-profit operator to run the CDS, citing higher beverage costs under Victoria's model.

VicRecycle regional director Jeff Maguire said he's hopeful the government will prioritise the benefits of community organisations when it makes its final decision.

"Under the NSW scheme, community organisations, small businesses and charities forfeit a large part of their container handling fees to TOMRA-Cleanaway to take part as refund point operators," Mr Maguire said.

"This doesn't occur in the community schemes operating in WA, QLD and SA, where hundreds of organisations gain 6.5 cents per container collected.

"In NSW, it's just 3.5 to 4.5 cents, with the remainder maintained by TOMRA-Cleanaway."

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Last November, Minister for Energy, Environment and Climate Change Lily D'Ambrosio said the CDS will reduce waste, provide opportunities for local businesses and create hundreds of jobs.

Ms l'Huillier said even if an industry-based approach is adopted, there should be a portion of those funds directed to charities and local organisations.

"I think some people would feel keeping the money themselves isn't enough of an incentive, so if they knew their returned money will go to charity, that could lead to move recycling."

In late 2020, the community was invited to provide feedback about the CDS, with the summary findings expected in early 2021.