There are four factors researched in the Global Waste Index by Sensoneo, based on which the 38 OECD countries receive a final score and are ranked in a comprehensive table. One of these factors is Recycling: the mass in kilograms per inhabitant per year that is declared to become new raw materials.
When considering an ideal recycled product that returns to the circular economy as a raw material, many people think of beverage packaging in the form of PET bottles or aluminum cans. The most effective system for achieving high return rates of these materials is Deposit Return Schemes (DRS).
In the following article, we explain what DRS is, explore how much of this packaging contributes to total waste, and examine whether its environmental impact can be measured.
What is a Deposit Return Scheme (DRS)?
A Deposit Return Scheme (DRS) is a recycling initiative where consumers pay a small deposit when purchasing beverages in single-use containers, such as plastic bottles or aluminum cans. This deposit is refunded when the empty container is returned to a designated collection point, often through reverse vending machines or manual return stations. The primary goal of DRS is to incentivize the return and recycling of beverage containers, thereby reducing litter and promoting environmental sustainability.
EU legislation and historical context
The European Union’s Single-Use Plastics (SUP) Directive mandates that member states collect 77% of plastic beverage bottles by 2025 and 90% by 2029. To achieve these targets, many EU countries have implemented DRS. The European Court of Auditors has highlighted DRS as a crucial tool for meeting these collection goals.
Historically, the first DRS was introduced in British Columbia, Canada, in 1970. In Europe, Sweden pioneered the system in 1984. Today, countries like Germany, Finland, and Norway have well-established DRS programs, contributing to their high recycling rates. Out of the 27 EU member states, 17 have implemented a Deposit Refund System, with Austria being the most recent, starting on January 1, 2025. A comprehensive overview of the current status of DRS in European countries, including collection rates, can be found in this article on our website.
In the United States, only 10 states currently have a Deposit Refund System in place (California, Connecticut, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon, and Vermont). Additionally, the U.S. territory of Guam has enacted similar legislation. This means that 40 states still do not have a Deposit Return Scheme.
Other countries outside the European Union and the United States that have implemented DRS include Barbados, Belize, Seychelles, Israel, South Korea, and most territories in Canada and Australia.
Contribution of plastic and PET bottles to municipal waste
In the EU, plastic packaging accounts for approximately 19.4% of total packaging waste, while metal packaging, including aluminum cans, constitutes about 4.9%. Although beverage containers represent a small fraction of municipal solid waste by weight, they significantly impact environmental pollution due to their volume and visibility in litter. The proportion of bottles within the total PET stream varies by country. For illustration, in the European Union, PET bottles account for approximately 47% of the PET packaging placed on the market.
And how much does the plastic waste stream represent in the overall composition of municipal solid waste? Various sources state that it accounts for between 12% and 15%. Globally, approximately 55% of plastic waste is landfilled each year, 25% is incinerated, and up to 20% is recycled.
Impact of DRS Implementation on high collection rates
While the direct impact of DRS implementation on overall municipal solid waste recycling rates, measured in kilograms, is not clearly visible (mainly due to the relatively low weight of these materials compared to others), the effect on collection rates is significant, as demonstrated by examples from countries that have implemented DRS over the past 10 years.
Romania: Launched its DRS in November 2023. Within the first year, the highest monthly collection rate, recorded in October 2024, reached 84%, indicating rapid adoption and system effectiveness.
Malta: The first Mediterranean country to launch a DRS did so in November 2022. Before implementation, collection rates were very low, ranging between 20–30%. However, in 2024, Malta’s Beverage Container Refund Scheme (BCRS) achieved a collection rate of 84%.
Slovakia: Introduced DRS in January 2022. Before implementation, the recycling rate for beverage PET bottles was estimated at 62%. After implementation, the country set a target to exceed a 90% return rate, aligning with EU goals.
Lithuania: Implemented DRS in 2016. Prior to this, the PET bottle return rate was 34%. By the end of the first year, it rose to 74.3%, and by the end of the second year, it reached 91.9%.
These examples demonstrate a clear correlation between the implementation of DRS and substantial increases in PET bottle collection rates.
When looking at the Global Waste Index by Sensoneo, it becomes clear that countries with established Deposit Return Schemes rank among the highest in overall waste management performance. Nations such as Estonia, Germany, Finland, Sweden, and Norway consistently achieve top scores. On the other end of the spectrum are countries like Turkey, Chile, Greece, and Mexico, where no DRS is currently in place. In this way, we can assume that countries with active Deposit Refund Systems also adopt a more sustainable and environmentally friendly stance toward other waste management practices, such as incineration or landfilling.
Environmental benefits and impact
However, Deposit Return Schemes are not just about achieving high return rates for statistics. They also make a meaningful contribution to a greener and cleaner environment. After the implementation of DRS, beverage containers are significantly less visible in cities, parks, rivers, and other natural areas. Beyond aesthetics, DRS also helps to lower greenhouse gas emissions.
- Reduction in greenhouse gas emissions: As stated in the study by Reloop North America, modernizing DRS in five Northeast U.S. states projected a reduction in emissions equivalent to removing 121,000 cars from the road annually.
- Decrease in Litter: The same study anticipated up to a 34% reduction in overall litter, leading to cleaner urban and natural environments.
- Economic Benefits: According to The Korea Herald, South Korea’s DRS for coffee cups and takeaway containers is expected to reduce CO₂ emissions by 66% and save approximately $36 million annually.
In conclusion, Deposit Return Schemes not only increase return rates and improve overall waste management practices in each country, but also play a pivotal role in environmental protection.
