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WHY DEPOSIT RETURN SCHEMES (DRS) MATTER

In a circular economy, beverage packaging is more than a container, it is a valuable resource. When collected and recycled properly, it can be turned into new bottles and cans, reducing environmental impact and preventing litter. DRS are among the most effective collection tools to achieve this. With their implementation now mandatory* under the EU Packaging and Packaging Waste Regulation (PPWR), an increasing number of European countries are rolling them out.

*with some exemptions. See here.

WHAT IS THE DRS PLAYBOOK ABOUT?

The DRS Playbook, developed by OLHC Consultants** with input from UNESDA Soft Drinks Europe and Natural Mineral Waters Europe (NMWE), is a comprehensive guide to designing, financing, and operating new DRS successfully. It brings together years of expertise, practical insights, and proven approaches to help stakeholders navigate the complexity of DRS implementation.

Whether you are a beverage producer, importer, policymaker or collection scheme administrator, this Playbook offers a structured, principle-based framework to support the rollout of efficient and locally adapted DRS. It is not an evaluation of existing systems, but a forward-looking resource to inspire best practices.

The Playbook is a living document and will evolve with new developments and lessons learned.

** OLHC is a boutique consultancy established in 1997. A small team of consultants with years of collective experience assists DRS coalitions initiated by beverage producers and industry, from a first introduction about DRS all the way to operations. Knowledge transfer, internal training, scheme design and roll out, (financial) modelling & business plan development, assistance in preparing DRS legal guidelines, DRS administrator license applications, project management, stakeholder mapping and management, interim management and operations are OLHCs key areas of expertise. For more info: raymond@mindthezebra.com.
Explore the DRS Playbook

WHAT IS INSIDE THE PLAYBOOK?

The Playbook takes readers through every critical aspect of DRS implementation, from legislative foundations to operational execution. Here is a glimpse of what it covers:

  • Legislative Context
    • Explains the role of Extended Producer Responsibility (EPR)
    • Unpacks the EU’s Packaging and Packaging Waste Regulation (PPWR)
    • Reviews national legislative frameworks and their implications
  • Design of a DRS
    • Offers guidance on setting up accessible and effective return points
    • Compares return processes, including Reverse Vending Machines (RVMs) and manual options
    • Presents the nine key design principles any news DRS should follow
  • Stakeholder Engagement
    • Highlights strategies for involving producers, retailers, consumers, and public authorities
  • Financial Architecture
    • Breaks down funding models, operational costs, and revenue flows
    • Details how to manage expenditures and optimize financial sustainability
  • Governance and Administration
    • Explores the setup and responsibilities of the DRS administrator
    • Provides insights into legal, technical, and operational requirements
  • Technical Specifications
    • Defines packaging, labelling, and RVM standards
    • Outlines IT system requirements for efficient data management and fraud prevention
  • Consumer Education
    • Shares best practices for building public trust and driving participation
  • Strategic Considerations
    • Discusses optimal deposit fee setting
    • Offers guidance on defending the system against fraud
    • Covers transition planning and stakeholder readiness
  • Reuse and Future Innovation
    • Explores the role of reusable packaging within DRS frameworks
    • Reflects on digital DRS (DDRS) and emerging technologies

Current water challenges

We cannot deny the current water challenges our world is facing. We are experiencing increased water scarcity, with demands for safe, usable water exceeding supply in many areas, including in Europe. 

  • Freshwater use has been growing by about 1% per year since the 1980s and as water demand is expected to continue increasing at a similar rate until 2050, this will account for an increase of 20 to 30% above the current level of water use1.
  • This increase in water demand is leading to a reduction of renewable water resources of 24% per capita in Europe2. 
  • Around 30% of the European population lives in areas with permanent water stress and up to 70% live in areas with seasonal water stress during summer3.
  • Europe’s aquatic ecosystems are severely degraded: only 17% of protected river, lake, alluvial, and riparian habitats are in good conservation status and 90% of protected wetland habitats are classified as poor or bad4.
  • Globally, 85% of wetlands have been lost in the last 300 years, with more than 50% lost since 19905. This is particularly critical as wetlands play an important role in filtering water and removing pollutants, as well as providing shelter to wildlife and capturing carbon.

 

This situation entails severe risks for the world’s population. 

  • For the last decade, the World Economic Forum has placed water-related risks among the world’s top five in its annual Global Risks Report. 
  • Water-related disasters have also dominated the list of disasters over the past 50 years and account for 70% of all deaths related to natural disasters6.
  • Nearly 95% of infrastructure loss and damage reported between 2010 to 2019 were due to water-related disasters7. 
  • More frequent and intensive flooding has cost lives and livelihoods across Europe, while at the same time, more than 50% of the continent has, in recent years, been affected by extreme drought conditions, which also breed a range of negative social, economic and human outcomes8.

A situation driven by a combination of factors

The deterioration of the natural water cycle stems from a confluence of factors: growing urbanisation, growing populations, increased consumption, poor management, pollution, lack of or damaged infrastructure, and climate change.  

Agriculture was responsible for 59% of total freshwater use in Europe in 20179, while industrial and domestic uses are the main drivers of increasing water demand. Indeed, as economies industrialise, populations urbanise and water supply and sanitation systems expand. 

Additionally, rising temperatures and more extreme weather patterns are causing more droughts and flooding. Climate variability is also bringing more uncertainty as to the availability, predictability and geographical distribution of water. Water and climate change are inextricably linked. From unpredictable rainfall patterns to shrinking ice sheets, rising sea levels, floods and droughts – most impacts of climate change come down to water (UN Water). 

1 Chart of Global Fresh Water Use 1901-2014 – The Global Education Project

2 Water use in Europe — Quantity and quality face big challenges — European Environment Agency (europa.eu)Chart of Global Fresh Water Use 1901-2014 – The Global Education Project

3 Water stress is a major and growing concern in Europe — European Environment Agency (europa.eu)

4 Europe’s state of water 2024: the need for improved water resilience | European Environment Agency’s home page (europa.eu)Water stress is a major and growing concern in Europe — European Environment Agency (europa.eu)

5 Innovative Solutions Needed for Wetlands in Crisis – SDG Knowledge Hub (iisd.org)

6 Water Resources Management Overview: Development news, research, data | World Bank Innovative Solutions Needed for Wetlands in Crisis – SDG Knowledge Hub (iisd.org)

7 Water risks and resilience (undrr.org)

8 Risks and solutions: how climate change is impacting our water and health | European Environment Agency’s home page (europa.eu)

9 Water scarcity conditions in Europe (Water exploitation index plus) | European Environment Agency’s home page (europa.eu)Risks and solutions: how climate change is impacting our water and health | European Environment Agency’s home page (europa.eu)