Keep Australia Beautiful, one of Australia's most trusted environment groups, is lobbying governments to oppose a bottle and can recycling scheme, while being funded by Coca-Cola.

Critics have questioned the credibility of Keep Australia Beautiful because of its ''disturbing'' relationship with Coca-Cola, which funds more than a quarter of the organisation's revenue.

Representatives of both groups have been working together to lobby Australian state governments to reject a national container deposit scheme and adopt an alternative proposal.

Under the scheme, consumers would be given a 10¢ refund when they return a bottle or can to a depot, as is the case in South Australia and the Northern Territory. Coca-Cola stands to be financially hit under the proposal.

The chief executive of Keep Australia Beautiful, Peter McLean, confirmed he has sent letters to Victorian Environment Minister Ryan Smith, arguing against establishing a container deposit in the state. ''We've been putting more informed ideas for debate out there,'' he said. ''We're a little bit concerned about misinformation exaggerating the benefits of container deposits - it's extremely expensive and doesn't target all types of litter.''