Wales launches reuse-focused deposit return scheme consultation

The Welsh Government has launched a 12-week consultation on delivering a ‘Best for Wales’ deposit return scheme for drinks containers that notably gives priority to promoting reuse.

The consultation, published yesterday (18 August), examines how Wales can implement mandatory targets requiring producers to place minimum percentages of reusable drinks containers on the market.

Deputy First Minister Huw Irranca-Davies launched the consultation at the historic Corona Pop Factory site in Porth, a former hub for reusable glass bottles, commenting: "Wales has always led by example on environmental action, and the deposit return scheme represents our next bold step forward. By putting reuse at the centre of our approach, we're not just tackling waste – we're creating a model that other nations can follow."

He added: "Visiting the old Corona Pop Factory, once a hub for reusable glass bottles, was a reminder that we're not inventing something new – we're returning to the best of our industrial heritage whilst building a sustainable future."

The approach aims to build on Wales' position as the world's second-highest recycling nation, with a 66.6 per cent household recycling rate reported for 2023/24.

Originally, all UK nations planned to implement aligned deposit return schemes by October 2027, covering plastic bottles and aluminium cans. However, Wales withdrew from this joint approach in November 2024 following disagreements over glass inclusion, with England, Scotland and Northern Ireland excluding glass containers from their schemes.

However, the Welsh Government recently decided to align with the October 2027 launch while opting to include glass bottles alongside PET plastic bottles and aluminium and steel cans ranging from 150ml to 3 litres.

Reuse roadmap framework

Central to the Welsh approach is developing a "reuse roadmap" that will be created by industry and coordinated by the appointed Deposit Management Organisation (DMO). The roadmap will establish how Wales transitions to reusable drinks containers across different materials, drink types, container sizes, and sales venues including retail, hospitality and catering.

The consultation proposes collection targets requiring the DMO to ensure minimum percentages of drinks containers are collected for reuse rather than single-use recycling. Options under consideration include targets ranging from 5 per cent to 50 per cent for each milestone year, with the consultation seeking views on appropriate levels for 2031, 2035 and 2040. Parallel producer targets would require corresponding percentages of drinks containers placed on the Welsh market to be reusable.

The Welsh Government aims to draw upon international best practice, citing Germany's achievement of 50 per cent reusable containers in its deposit return scheme and Latvia's 67 per cent reusable glass bottle rate. Notably, the European Union's Packaging and Packaging Waste Regulation, implemented in February 2025, mandates 10 per cent reusable alcoholic and non-alcoholic drink packaging by 2030, rising to 40 per cent by 2040.

Independent analysis suggests the shift to a circular economy could generate £3.8 billion in savings for the Welsh economy whilst creating green jobs and strengthening manufacturing and logistics sectors. Research from Go Unpackaged indicates reuse at scale could create up to 13,000 new jobs and save £314 million to £577 million per year from end-to-end system costs.

The consultation proposes minimum standards including requiring reusable containers to be used at least eight times on average before recycling. This builds on evidence from international schemes where reusable glass containers achieve up to 33 uses with 97 per cent return rates, as demonstrated in Finland's deposit return system.

The scheme builds on Wales' Beyond Recycling circular economy strategy, which elevates the need to move towards greater levels of material reuse, positioning the deposit return scheme as essential infrastructure for this transition.

European evidence demonstrates significant environmental benefits from deposit return schemes including reuse. Zero Waste Europe research indicates properly implemented reuse-focused systems generate 50 per cent fewer CO2 emissions than single-use recycling approaches. Countries with established schemes report collection rates up to 97 per cent, as achieved in Finland where reusable bottles are refilled approximately 33 times before recycling.

The consultation examines supporting measures including lower fees for producers using reusable containers, restrictions on single-use container products, and technical or financial assistance for producers transitioning to reusable packaging. The Welsh Government is also expanding the scheme to include additional container types or drinks categories, such as milk, juice and dairy-based products currently excluded from initial scope.

Glass inclusion strategy

Wales faces unique challenges in implementing glass collection against the backdrop of other UK nations excluding glass from their schemes. The consultation proposes addressing this through a phased approach designed to maintain interoperability with schemes across England, Scotland and Northern Ireland.

For single-use glass containers, the Welsh Government suggests starting with a zero-value deposit while still collecting glass from day one. This transitional arrangement aims to avoid immediate labelling, production or distribution system changes while enabling the necessary infrastructure development. The UK Internal Market Act 2020 prevents Wales from charging deposits on glass bottles that are manufactured or sold elsewhere in the UK, forcing Wales to adopt this graduated approach.

Previous consultations showed strong support for glass inclusion, with 83 per cent of respondents supporting glass containers in the scheme and 73 per cent favouring glass bottle refill and reuse rather than single-use recycling. Keep Wales Tidy surveys in 2023-24 found drinks-related litter on 43.6 per cent of Welsh streets, with glass bottle presence more than doubling over four years.

However,  the Association of Convenience Stores has warned that Welsh retailers will face more challenging operations collecting glass bottles separately and maintaining them whole for collection and refilling.

The Welsh Government proposes exempting producers already qualifying for low-volume exemptions under the packaging Extended Producer Responsibility scheme (those responsible for less than 25 tonnes of packaging annually) from glass requirements. This aligns DRS thresholds with existing pEPR frameworks whilst providing targeted support for smaller producers.

Wales anticipates gradual expansion of glass container types, potentially phasing in different drinks categories over a maximum three-year period. The consultation examines whether beer, cider, soft drinks, wine and spirits should be introduced sequentially rather than simultaneously to support industry transition to reusable packaging.

Commenting on the proposals, Travis Way, Managing Director of Reconomy-owned EcoVend, said: "While Wales is aligned with the other UK nations on including metals and plastics in the scheme, the decision to press ahead with bringing single-use glass into scope has raised concerns among soft drinks companies and retailers.

“While the Welsh Government has stressed that there will be a carefully phased approach to avoid disruption by not requiring deposits or changes to labelling, it will be important that this is developed in close collaboration with the other nations to minimise operational challenges for retailers and producers and prevent any unnecessary consumer confusion."

Operational framework and return infrastructure

The consultation proposes that the appointed Deposit Management Organisation should determine deposit amounts, except where specific values are set directly in regulations. International examples show varying approaches: Germany applies a €0.25 flat rate for single-use containers with lower deposits of €0.08-€0.25 for reusable bottles, while Latvia uses €0.10 across all container types and Finland varies deposits from €0.10-€0.40 depending on material and size.

For reusable containers during the 2027-2030 transition period, Wales proposes zero deposits to facilitate system development whilst maintaining interoperability with other UK schemes. The consultation also seeks views on whether reusable container deposits should be higher, lower or equivalent to single-use rates once fully implemented.

Return point locations will primarily be retail-based, with larger shops typically operating reverse vending machines while smaller stores handle manual returns over the counter. The Welsh Government proposes that return point operators receive handling fees reflecting floor space costs, equipment rental and staff time, with additional provisions for the careful handling requirements of reusable containers.

The consultation examines innovative return options including large return centres at Household Recycling Centres, doorstep returns through online grocery delivery services, kerbside collection integration with local authority recycling services, and return points at community infrastructure such as libraries and sports centres. New technology including two-dimensional barcodes and digital tracking systems could enable container identification and deposit management, potentially allowing future home-based returns.

All retailers selling drinks containers within the scheme scope would be required to accept returns, though the consultation acknowledges that smaller stores may face different operational challenges compared to large retailers with automated systems. The DMO will be required to ensure return point accessibility across Wales while considering the needs of different retail formats and rural communities.

Responses - to be received by 10 November - will inform both primary legislation establishing the Welsh deposit return scheme and subsequent detailed regulations covering reuse provisions. The Welsh Government emphasises that whilst developing a Wales-specific approach, continued collaboration with UK nations and industry partners remains essential for delivering coherent, effective schemes across Britain.