What Makes a Deposit Return Scheme Successful?

As more countries adopt Deposit Return Schemes (DRS) to tackle beverage container waste, a critical question arises: what makes these systems truly effective? While the basic principle is simple—refunding a deposit when containers are returned—execution can vary greatly. Success lies not in the concept alone, but in the strategy, technology, and stakeholder collaboration behind it.

In this blog, we explore the core factors that determine whether a DRS achieves its environmental and economic goals.

1. High Return Rates

The primary metric of success for any DRS is its return rate. Systems that achieve 85–95% return rates not only reduce litter but also ensure that containers are recycled in a closed loop. Countries like Norway, Germany, and Lithuania have proven that high-performing systems are possible when infrastructure and incentives are aligned.

Key enablers:

• Clearly marked containers

• Sufficient return locations

• Easy, fast refund processes

2. Convenient and Accessible Infrastructure

A successful DRS must be user-friendly. Consumers are more likely to participate when they can return containers at places they already visit—such as supermarkets, convenience stores, or public transit hubs.

Best practices include:

• Reverse vending machines (RVMs) with fast processing times

• Manual return points in rural or small retail locations

• Extended operating hours and intuitive interfaces

3. Clear and Consistent Communication

Public awareness is crucial. A well-informed public is more likely to support and engage with the system. This includes understanding which containers are eligible, how to return them, and where to collect refunds.

Effective strategies:

• National campaigns using simple, visual messaging

• Multilingual materials in diverse communities

• School programs and local partnerships

4. Broad Material and Product Coverage

Limiting a DRS to only certain container types (e.g., only plastic bottles or carbonated beverages) can confuse users and reduce the system’s impact. The most effective programs include a wide range of beverage containers—plastic, glass, aluminum, cartons, and even refillables.

Benefits of wider coverage:

• Higher total return volumes

• Less contamination in general recycling bins

• Greater environmental and economic return on investment

5. Strong Stakeholder Collaboration

Success depends on collaboration across public and private sectors. Governments, producers, retailers, and technology providers must work together to ensure smooth logistics, reliable funding, and policy enforcement.

Key roles:

• Governments set legal frameworks and performance targets

• Retailers provide collection points and educate consumers

• Producers contribute to system financing and innovation

• Technology partners ensure traceability and efficiency

6. Scalable, Transparent Technology

Modern DRS rely heavily on technology—barcode recognition, digital refund systems, real-time monitoring, and data reporting. Transparent systems build trust and allow continuous improvement.

Leading tech elements include:

• Cloud-based reporting and analytics

• API integration with retail or government systems

• Anti-fraud mechanisms and smart error detection

A well-designed DRS is much more than a refund system—it’s a strategic framework for enabling circular economy practices. When designed thoughtfully and executed with precision, DRS can drive behavioral change, reduce environmental impact, and promote long-term sustainability. By focusing on convenience, clarity, collaboration, and technology, governments and businesses can ensure their deposit systems don’t just exist—but truly succeed.