Deposit Return Scheme

Definition

Deposit Return Scheme (DRS) is a system where consumers are charged an inclusive deposit fee when purchasing single-use containers – typically for drinks and beverages. The deposit incentivises consumers to return empty containers for recycling, and acts as a catalyst for reducing waste, litter and pollution. Deposits are easily redeemable at designated return points – either ‘reverse-vending’ machines, or over the counter at retailers.

Principles

The UK is planning to introduce a national deposit return scheme in 2027, although the basic principles of deposit return schemes have been around for many years. Initiated by drinks manufacturers as far back as the 19th century, one scheme by soft drinks producer AG Barr continued till as recently as 2015.¹

A shift away from reuse schemes such as returnable glass milk bottles coincided with the rising influence of supermarkets on domestic shopping habits in the 1990s, alongside the increasing affordability and innovation of lightweight plastics which reduced volume and material costs for manufacturers. This process removed much of the economic incentive for manufacturers to reuse packaging. Today, the environmental charity Keep Britain Tidy estimates that as many as 8 billion plastic bottles are now littered, lost to waterways or sent to landfill in the UK every year.² They also estimate that UK consumers dispose of around 14 billion single-use plastic drinks bottles and nine billion drinks cans each year, accounting for around 75% of street litter in the UK.

Implementation

UK supermarkets and manufacturers have a history of lobbying against efforts to introduce DRS – promoting doorstep recycling as a more effective way to increase recycling.³ However, this premise works against the ‘polluter pays’ principle, to which UK manufacturers currently have one of the weakest obligations in Europe. In the UK around 15% of the 14 billion plastic bottles used each year are consumed on-the-go, with citizens covering around 90% of the costs of packaging waste disposal. Littering alone costs UK taxpayers £800m a year.⁴

Many countries have operated DRS systems for a number of years, including Sweden, who first introduced the pledge or ‘pant’ mark on aluminium cans in 1984. Without such extended producer responsibility schemes, producers have little incentive to consider recycling as they bear few of the costs of waste management.

DRS systems not only lessen the environmental impact of waste, but can also support the creation of new industries and jobs built on the recycling and innovation of materials. DRS can also informally encourage litter picking either by individuals or nonprofit civic organisations who can claim the deposits. It is generally considered to be the most effective method of tackling the challenges of on-the-go packaging consumption and littering, and captures waste by encouraging recycling in a way that is not always applicable through typical doorstep recycling.

With the much-delayed launch of a national deposit return scheme anticipated for the UK in 2027, the government has set a target to ensure that after the first three years of the scheme, as much as 85% fewer drinks containers will be discarded as litter.⁵