It is the first initiative of its kind that sees a local authority adopt a consumer scheme to encourage and reward behaviours in the community.
Birmingham City Council, the largest UK council, approached Nectar to develop the partnership a year ago.
Residents of Birmingham can claim 25 Nectar points for each collection or visit to a leisure centre.
Nectar’s client development director Will Shuckburgh says: “It’s a great example of sharing commercial best practice and the public sector learning from the commercial sector to incentivise positive behaviours. It’s also good example of finding ways to incentivise behaviours that our collectors are interested in and try to do anyway.”
It is an extension of existing “green schemes” within the Nectar programme that reward consumers for reusing shopping bags at Sainsbury’s or switching to paperless statements with British Gas.
The trial will cover 4,000 households in Bourneville and Erdington but could roll out to 400,000 homes in Birmingham area.
Shuckburgh adds that the scheme could potentially roll out to other regions in the UK and to other relevant public services.