The Department for Environment, Food & Rural Affairs (DEFRA) has made significant progress in developing the Deposit Return Scheme (DRS) for Drinks Containers across England, Scotland, and Northern Ireland. This initiative aims to enhance recycling efforts, reduce litter, and contribute to climate change goals. The scheme is set to be implemented by October 2027 and involves the appointment of a Deposit Management Organisation (DMO) to oversee operations.
The application process for selecting a DMO includes four main components: essential information, internal governance structure, operational plan, and financial management. Essential information ensures that the DMO is a not-for-profit entity, while the operational plan details how the scheme will function, including deposit levels and logistics management. Financial management involves submitting a business plan and financing details for the DRS.
DEFRA has emphasized the importance of quality access to the scheme and addressing potential governance issues. They have provided a guidance document to assist applicants, outlining best practices and expectations for each section of the application. Applications must be submitted by February 3, 2025, after which the UK and Scottish governments may seek further clarification from applicants.
The Scottish Government has committed to the DRS, aiming to enhance recycling and reduce litter. They are collaborating with the UK Government and Northern Ireland Executive to ensure a successful rollout. Applications for DMO positions opened on December 2, 2024, and will close on February 3, 2025.
DEFRA has learned from international DRS implementations in countries like Germany and Sweden, where separate sorting of containers at the source has reduced contamination and promoted a circular economy. This approach is expected to produce high-quality recycled materials and decrease littering.
Regarding the Internal Markets Act, DEFRA has not yet received an exclusion request from the Welsh Government for including glass in their DRS. Any such requests will be evaluated on a case-by-case basis.
Retail outlets selling DRS containers must act as return points if they meet specific criteria, although exemptions are possible under certain conditions. Local authorities can redeem deposits from collected containers, potentially benefiting financially.
The government is exploring the potential of a Digital DRS, though concerns about compliance and scalability remain. The DRS regulations allow for a post-implementation review to assess effectiveness and explore alternative approaches.
While DRS producers are exempt from paying pEPR fees initially, they will contribute to the setup costs of DMOs. This exemption lasts until 2028, aligning with the DRS implementation timeline.
