NSW consumers would receive a 10-cent refund for recycling bottles and cans under a contentious proposal to go before cabinet on Monday.

The Baird government is expected to consider a container deposit scheme that proponents say would encourage recycling, reduce waste management costs and divert many of the one billion plastic bottles that go to landfill in Australia each year.

NSW consumers would receive a 10-cent refund for recycling bottles and cans under a contentious proposal to go before cabinet on Monday. Credit:Domino Postiglione

The beverage industry has lobbied fiercely against such a scheme, which would initially add 10 cents to the cost of a beverage. Consumers could later recoup the money.

Fairfax Media understands that Environment Minister Rob Stokes will take two proposals to cabinet.