Does the Deposit Return Scheme actually work?

A tattooed hand holding a plastic water bottle — Photo by Jonathan Cooper on Unsplash

Every year on March 18, the world celebrates Global Recycling Day—a vital reminder of the role we all play in preserving our planet through smarter waste management and sustainable consumption. As we recognize this international initiative, one solution gaining traction in the war against waste is the Deposit Return Scheme (DRS).

But what exactly is a deposit return scheme, and does it truly work in solving our waste crisis? Let’s explore how it works, successful global models, and the impact of DRS as the world looks toward a cleaner, circular economy.

What is a deposit return scheme (DRS)?

A deposit return scheme (DRS) is a container deposit system designed to encourage the return of beverage containers for recycling. When consumers purchase bottled drinks, they pay a small deposit fee, which is refunded upon returning the empty container to designated collection points.

The primary goals of DRS include:

Reducing litter in public spaces and landfills
Boosting recycling rates by incentivizing returns
Supporting a circular economy by reusing valuable materials
Decreasing reliance on virgin materials, reducing environmental footprint

Given increasing concerns about plastic pollution and waste management, DRS has become a crucial tool in sustainable waste solutions worldwide.

How a Deposit Return Scheme Works

The mechanics of DRS are relatively simple:

1. Consumer Purchase: A deposit is added to the price of beverages sold in plastic, glass, or aluminum containers.

2. Consumption and Return: Consumers return empty containers to reverse vending machines (RVMs) or designated collection centers.

3. Deposit Refund: Consumers receive their deposit back, often in cash or store credit.

4. Processing and Recycling: The returned containers are sorted, processed, and recycled to be repurposed into new products or containers.

Benefits of DRS

1. Reduces litter in urban and natural environments

2. Encourages public participation in recycling efforts

3. Conserves resources by increasing the use of recycled materials

4. Creates jobs in waste management and recycling industries

plastic bottles — Photo by Jonathan Chng on Unsplash

Global examples of deposit return schemes (DRS)

Let’s look at how various countries are adopting and adapting DRS to their context—and the results they’re seeing.

Germany’s Pfand system

Germany’s Pfand system is a global leader in beverage container recycling. It offers both reusable and single-use options. The first has producer-set deposit prices that range from €0.08-€0.25 can be used multiple times and can be made from glass or PET plastic. The second are single-use containers, which are used only once before recycling. The government applies a fixed €0.25 deposit on these. Containers are returned through reverse vending machines widely available in supermarkets. The result? An impressive return rate of above 98%, making Germany a leader in beverage container recycling.¹

In 2021, Germany implemented a ban on certain single-use plastics. Starting 2025, they will also be introducing a minimum quote of 25% recycled PET content in drink bottles.²

United Kingdom delayed DRS rollout

The UK plans to launch a national DRS in 2027 due to policy and logistical challenges. According to Keep Britain Tidy’s National Litter Survey, 75% of the UK’s estimated 8 billion drink containers are wasted – through landfills, incineration, or in waterways.³

Europe’s high- performing DRS schemes lead the way

15 European nations have embraced DRS, with Norway, Sweden, and Denmark operating some of the most efficient programs. High deposit values and advanced return systems contribute to return rates exceeding 90%. Denmark’s DRS is managed by the non-profit organization Dansk Retursystem. It incentivizes consumers to return beverage containers—such as plastic bottles, glass bottles, and aluminum cans—by adding a small deposit to the purchase price, refunded upon return of the empty container. This system has achieved remarkable success, with a return rate of 93% in 2021, making it one of the world’s most effective recycling programs.⁴

France’s DRS faces opposition from stakeholders

France is actively working on implementing a nationwide DRS to support its circular economy goals. French local authorities have opposed this initiative due to concerns that the costs associated with implementing and managing the DRS could outweigh its environmental benefits.⁵

United States and bottle bills

The U.S. lacks a federal DRS, but 10 states, including California, Oregon, and New York have implemented bottle bills, with deposits ranging from $0.05 to $0.10 per container. Oregon’s 10-cent deposit program boasts an over 85% return rate, demonstrating that higher deposits and program upgrades lead to greater participation.⁶

Philippines pilots DRS for EPR law

The Philippines is integrating DRS as part of the Extended Producer Responsibility (EPR) law. Organizations like Plastic Bank operate systems where people exchange plastic for additional income, digital vouchers for groceries, and insurance. A pilot project for the approval and implementation of the first DRS pilot site is targeted for 2025, with the support of the Norwegian Embassy in Manila and the WWF. ⁷

Indonesia’s plastic waste strategies

The Indonesian government is being encouraged to adopt DRS as part of its National Plastic Action Partnership strategy to cut ocean plastic leakage by 70% by 2025 and achieve a circular economy for plastics by 2040.⁸

Plastic Bank also operates in Indonesia, and other organizations are supporting pilot DRS feasibility studies that are focused on reverse logistics, waste collection incentives, and community engagement in Bali, Jakarta and Surabaya. While a deposit scheme is not planned in Indonesia, the Environment and Forestry Ministry’s Hazardous Waste, Garbage, and Toxic Substances Management Director, General Rosa Vivien Ratnawati has noted government regulations require redesigning and retrieving packaging.⁹

Canada’s provincial DRS programs

Several Canadian provinces, including British Columbia, Alberta, and Ontario, have long-standing deposit systems. In British Columbia, DRS covers aluminum, glass, and plastic bottles. In 2021, the recovery rate for plastic was 55%.¹⁰

In Quebec, a 10-cent deposit fee was implemented on all plastic bottles ranging from 100 millilitres to two litres starting March 2025. Consumers can get their money back when they return the bottle to one of Quebec’s 3,500 participating retailers.¹¹

Brazil sees DRS as an emerging initiative

Brazil has experimented with deposit-based recycling, focusing on urban centers. With increasing governmental support, the expansion of DRS is expected to contribute to waste reduction efforts.

Brazil is experimenting with reverse logistics centers and informal sector integration.¹²Aside from Plastic Bank, there are other projects in São Paulo and Rio de Janeiro that support waste pickers and reduce landfill dependency.

Egypt encourages recycling with incentives

Egypt has faced significant waste management challenges, and discussions around a formalized DRS are ongoing. Recent projects, including Plastic Bank’s initiatives to recover plastic in tourist areas, show that financial rewards can encourage recycling behaviour.

How DRS supports a circular economy and environmental sustainability

Circular economy benefits

Extends product lifecycles by reusing and recycling materials.
Reduces extraction of raw materials
Supplies manufacturing industries with recycled inputs

Environmental impact

Reduces beverage container litter: Studies by Reloop Platform show DRS reduces beverage container litter by up to 40% in urban areas.¹³
Recycling materials requires less energy than producing new ones. Every ton of recycled PET saves up to 1.5 tonnes of CO₂ emissions
Prevents ocean and land pollution, where beverage containers are a major contributor.

Social and economic benefits

Job creation in the recycling and waste management sectors.
Financial incentives for consumers, encouraging sustainable habits.
Community engagement, as organizations and charities collect containers for fundraising. Community-based schemes in countries like the Philippines and Brazil provide income streams for informal waste workers and empower underserved populations.

Challenges of implementing deposit return schemes

Implementation costs: Setting up a DRS requires investment in collection infrastructure.
Consumer inconvenience: Some critics argue that returning containers adds hassle.
Inefficiencies in some regions: Poorly designed systems can lead to low participation rates.

The role of DRS in a sustainable future

Global Recycling Day emphasizes waste reduction, resource conservation, and sustainable solutions—all of which DRS supports. Expanding these schemes worldwide would contribute significantly to achieving circular economy targets.

You can help by:

Participating in existing programs
Encouraging businesses and policymakers to adopt or improve DRS
Educating others about the benefits of returning beverage containers

Global Recycling Day reminds us that waste is a resource, and a well-designed deposit return scheme reduces waste, preserves resources, and empowers communities. Learn more about the impact of Plastic Bank’s global bottle deposit program and find out how you can help make a difference.