What are deposit return schemes?
How deposit return schemes typically work along the full supply chain from producers to retailers to consumers.
A deposit return scheme is one example of producer responsibility. Producer responsibility is about making sure businesses that manufacture, import and sell certain products are responsible for their end-of-life environmental impact.
A deposit return scheme for Northern Ireland (with England and Scotland) is due to be introduced in October 2027. You can . You can find out more about scheme currently being operated in the Republic of Ireland.
How do deposit return schemes work?
A deposit return scheme is where a consumer pays an up-front deposit on an item (the deposit item) at the point of purchase, which is redeemed on return of the deposit item to a designated return point.
Obligations for producers include:
- registering with a deposit management organisation (DMO)
- paying a producer registration fee which covers the scheme administration costs
- placing a deposit value on top of the price of the drinks and paying this to the DMO
- labelling in-scope drinks containers with details of the scheme
Obligations for retailers include:
- adding the deposit price to the purchase price at the point of sale
- accepting all deposit return containers at their store
- refunding consumers when an in-scope item is returned
The deposit fee is passed through the supply chain (consumer, retailer, distributor, producer) and is cost-neutral to all involved.
What are the aims of deposit return schemes?
The primary objectives of a deposit return scheme are to:
- increase recycling rates of in-scope containers
- increase the quality of recycled material to encourage closed-loop recycling and circularity to ensure materials remain in use for as long as possible
- reduce littering of in-scope containers
Evidence has shown that a deposit return scheme can become a simple part of daily life to make recycling easier - recycling rates in countries such as Germany, Finland, and Norway, which employ such a scheme, are above 90 per cent.
Current recycling rates for drinks containers in the United Kingdom have levelled off at around 70 per cent. An effective scheme could reduce littering of these drinks containers by around 85 per cent, and reduce plastic pollution.