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Deposit Return System (DRS): a revolution for the circular economy

The environmental impact of the linear economy

Over the last years, issues concerning environment and sustainability have increasingly gained worldwide importance. In fact, many initiatives have been created to limit the environmental impact caused by our society, based on a linear economy.

One of the most remarkable projects in this field is the Deposit Return System (DRS), a system that consists in returning empty containers, so as, paying particular attention to the recycling of plastic material.

In this article, we are going to explore what the DRS system is, with a deep focus on the benefits resulting from its implementation and on the role it plays in the circular economy.

What’s the DRS system and which role it plays in the circular economy

The DRS system introduces itself as a key element inside the circular economy because aims to promote the recycle and reduce the waste. The main concept behind of DRS system is the following one: customers pay a low deposit when they buy a container and, once been used, they can return it to a collection point to allow it to be recycled and get a refund.

In this way, the reduction in consumption of finite resources is considerable, and environmental sustainability is promoted by solving several problems, including:

Environmental pollution

Avoid littering

Waste and scarce resources

Avoid the production of new packaging and preserve natural and energetic resources

Climate change

Reduce CO2 emissions created by the packaging manufacturers

Moreover, by employing this system, the economic and social welfare increases because of the creation of new job opportunities that involve tasks related to the collection and recycling of packaging.

DRS becomes digital

In addition to the traditional version of the DRS, a digital one has now been implemented because it provides higher usability and traceability to the system. In fact, the containers are equipped with Barcodes, QR Codes or RFID to:

  • Ensure a unique identity to the products, so that they are tracked individually and managed for recycling.
 
  • Check the efficacy of the system and its benefits.
 
  • Manage the refund system, guaranteeing that the customer will receive the refund paid previously.


As to the refund system, it is fundamental to emphasize that the integration of the digital version enhance its management. Once the container is returned and registered, the system calculates automatically the amount to be added to the customer’s bank account, either through an application, a voucher or a discount on future purchases.

The digitalization process provides useful reports for producers, resellers and authorities for the purposes of compliance with environmental regulations and results.

How the DRS System will be implemented

Due to the growing concerns about pollution and its impact on the environment, governments and Institutions in the European Union have intensified their efforts by adopting several legislations. The most important is the SUP (Single Use Plastic) that wants to reduce the impact of plastic waste on the planet through recycling.

The main goal is to decrease the use of single-use plastic products and to introduce deposit-refund or deposit systems to achieve targets of:

  • selective collection of recycled materials in PET bottles equal to 25% in 2025 and 30% in 2030. 1

  • selective collection of plastic bottles equal to 77% by 2025 and 90% by 2029. 1
 

In addition to the SUP, the PPWRPackaging and Packaging Waste Regulation was introduced. This regulation wants the Member States to adopt necessary actions to establish deposit systems for single-use plastic bottles and metal containers by 1 January 2029. 2

However, there is an exemption stating that countries able to ensure a collection of such packaging of more than 90% put on sale in 2026 and 2027 will not be obliged to introduce a DRS.

Safe Deposit Systems are becoming increasingly widespread, especially in Europe. Currently, in our continent, there are 14 active DRS that are achieving collection rates of over 90%compared to an average of 47% in countries that do not adopt such systems. Further 10 countries have already established their intention to introduce such systems and are about to do so in the next three years. 3

Countries already involved

Croatia, Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Malta, Netherlands, Norway, Romania, Slovakia, Sweden.

Next countries

Austria, Cyprus, Greece, Poland, Portugal, Czech Republic, United Kingdom, Scotland, Turkey, Hungary.

Bibliographic references:

(1) Gazzetta ufficiale dell’Unione europea, DIRETTIVA (UE) 2019/904 DEL PARLAMENTO EUROPEO E DEL CONSIGLIO del 5 giugno 2019 sulla riduzione dell’incidenza di determinati prodotti di plastica sull’ambiente, Source

(2) Commissione Europea, REGOLAMENTO DEL PARLAMENTO EUROPEO E DEL CONSIGLIO sugli imballaggi e i rifiuti di imballaggio, che modifica il regolamento (UE) 2019/1020 e la direttiva (UE) 2019/904 e che abroga la direttiva 94/62/CE, Source

(3) Studio “Sistema di depositi cauzionale: quali vantaggi per l’Italia d il riciclo”, condotto da Eunomia Research & Consulting, società di consulenza indipendente in tema di sostenibilità, Source