Container-deposit legislation

Container-deposit legislation is any law that requires the collection of a monetary deposit on beverage containers at the point of sale and/or the payment of refund value to the consumers. When the container is returned to an authorized redemption center, or retailer in some jurisdictions, the deposit is partly or fully refunded to the redeemer. It is a deposit-refund system.
Governments may pass container deposit legislation for several reasons, including to encourage recycling and complement existing curbside recycling programs; to reduce energy and material usage for containers, to reduce beverage container litter along highways, in lakes and rivers, and on other public or private properties ; and to extend the usable lifetime of taxpayer-funded landfills.
Deposits that are not redeemed are often kept by distributors or bottlers to cover the costs of the system or are escheated to the governmental entity involved to fund environmental programs. Studies have shown that container-deposit schemes are generally very successful in practice, with return rates commonly reaching up to 90% or more.

History

A & R Thwaites & Co in Dublin, Ireland, announced in 1799 the provision of artificial "soda water" and that they paid 2 shillings a dozen for returned bottles. Schweppes, who were also in the business of artificially made mineral waters, had a similar recycling policy from about 1800, without any legislation. Scottish bottled beverage companies also voluntarily introduced such a scheme to encourage the return of their bottles for reuse. In Sweden a standard system for deposits on PET bottles and aluminium cans was established by legislation in 1984.
British Columbia's legislated deposit-return system, enacted in 1970, is the oldest such program in North America.

Laws by country

Overview

Africa

Kenya

By 2005, the beverage industry in Kenya applied a deposit-refund system for glass bottles that had proven to be popular amongst wholesalers, retailers and consumers alike to participate in, not just in Nairobi, but throughout the country. At the time, there was a deposit of 10 Kenyan shillings on soft drink bottles, and 25 shillings on beer bottles.

South Africa

Although there is no formalised deposit-return scheme for packaging or plastics in South Africa, individual companies such as Coca-Cola have implemented deposit-return schemes for their own products with success. Manufacturers introduced this system without involvement of the government around 1948. Approximately 75% of beer containers, 45% of soft drink containers, and some wine and spirits bottles participate in the scheme. South Africa was noted in 2012 as one of the few countries that included plastic bottles in its schemes. Aside from bottles, similar deposit-refund schemes exist in South Africa for batteries, cars, and tyres.

Americas

By 1998, there were voluntary deposit-refund schemes for glass containers in Barbados, Bolivia, Brazil, Chile, Colombia, Ecuador, Jamaica, Mexico and Venezuela.

Canada

In 1970, British Columbia became the first Canadian province to establish a mandatory deposit-return system for soft drinks and beer containers. As of 2021, nearly all provinces and territories in Canada have followed suit; the territory of Nunavut is the only jurisdiction in Canada that has yet to implement some sort of deposit refund system. In Ontario, only containers of alcoholic beverages come with deposits, in Manitoba only beer containers participate in the deposit scheme.
Deposits range from CAD$0.05 to CAD$0.40 per unit depending on the material and size of the container and whether the container contains an alcoholic or non-alcoholic beverage.
Below is a brief summary of each program:

British Columbia: While the original program covered only carbonated soft drinks and beer, the deposit legislation expanded to include any ready-to-serve beverage sold in a container that is sealed by its manufacturer. There are currently two stewardship agencies in BC that carry out deposit-refund obligations on behalf of beverage producers: Encorp Pacific and Brewers Distributor Ltd. . In 2017, BC's program recovered over 1 billion containers for an overall return-rate of 75.8%. Bottle deposit on single use beverage containers have increased to CDN $0.10 from CDN $0.05 in November 2019. As of February 2022 milk and milk substitute containers are also refundable.
Alberta: All beverage containers, including milk containers, are charged deposits at the point of sale; 10¢ for containers 1 L or less, and 25¢ for containers larger than 1 L. Containers can be dropped off at depots and are picked up by the Alberta Beverage Container Recycling Corporation. In 2014, over 2 billion beverage containers were returned to Alberta depots for an overall return rate of 83%.
Saskatchewan: Established in 1988, Saskatchewan's deposit-return program applies to all ready-to-serve beverage containers, except those for meal replacements, or dietary supplements. SARCAN began taking milk and milk substitutes on April 1, 2017. SARCAN Recycling is responsible for administering the program and operates under contract to the Saskatchewan Ministry of Environment. In fiscal 2014–2015, a total of 405.6 million beverage containers were returned to SARCAN recycling depots for an overall container return rate of 87%.
Manitoba: Manitoba's program was implemented in 2010 and is limited to beer containers, which are charged a deposit of CAD$0.10 or $0.20 depending on the size. Other containers are charged a non-refundable $0.02 per unit levy and can be recycled in municipal curbside recycling programs.
Ontario: The Ontario Deposit Return Program, which came into force in February 2007, is a voluntary program implemented by the provincial government that covers wine, spirits, and imported beer containers. Because there is no law mandating that wine and spirits be placed on deposit, they may be added to municipal blue box programs voluntarily. Refillable and non-refillable beer containers are collected through a separate program administered and operated by Brewers Retail Inc.. Alcoholic beverage containers, as well as any associated packaging, can be returned to 443 beer store locations, 113 breweries, 141 retail partner stores, 63 LCBO northern agency stores, 4 additional LCBO stores, and 115 empty bottle dealers, for a total of 879 redemption locations. TBS trucks collect these empty containers and back-haul them to various distribution centres where recyclables are sent to a processing facility for sorting, baling, and shipping to market. Refillable bottles are sent back to the brewers for washing and refill. Containers returned through Ontario's deposit-return system showed a total recycling rate of 89% for 2014–2015, while refillable beer bottles were returned at a rate of 98%.

File:6675 boulevard Monk - 06.jpg|thumb|A reverse vending machine in a Montreal grocery store

Quebec: Quebec's deposit-return system was established in 1984 and covers beer and carbonated soft drink containers. As of March 1, 2025, ready-to-drink beverages ranging from 100ml to 2L carry a $0.10 deposit.Boissons Gazeuses Environnement administers the program for non-refillable soft-drink containers on behalf of industry, while Recyc-Quebec oversees the beer container collection program. In 2014, the recycling rate for containers recovered via the deposit-return system was 78%.
New Brunswick: This program was created in 1992 and covers all ready-to-drink, non-refillable beverage containers 5 L and under, including soft-drinks, beer, wine, spirits, flavoured waters, fruit juices, vegetable juices, and low alcohol drinks. Containers for milk and milk products as well as processed apple cider are exempt. Encorp Atlantic Inc. is the stewardship agency responsible for managing the collection, transportation, and partial processing of non-alcoholic beverage containers on behalf of brand-owners, and New Brunswick Liquor is responsible for the collection of alcoholic beverage containers. Program oversight is the responsibility of the Department of Environment. New Brunswick's deposit-return program is somewhat unique in that it operates under a "half-back" model where only half of the original deposit is refunded to the consumer when a container is returned for recycling. The unrefunded portion of the deposit is used to cover the costs of administering the program and part of it also goes towards the province's Environmental Trust Fund, which is used for environmental conservation and other provincial initiatives aimed at reducing waste. In 2014, New Brunswick's recycling rate for non-refillable containers was 73%.
Newfoundland and Labrador: In 1996 the provincial government established The Multi Materials Stewardship Board as a self funded crown agency, Intended to develop, implement and manage waste diversion programs for various specific waste streams, province wide. The following year MMSB began a licensing and standardization framework for recycling depots. Branded as Green Depot, all locations are independently owned and operated enterprises. There are 55 Green Depots province wide accepting non refillable ready-to-serve beverage containers for refund, excluding those for milk & milk alternatives, infant formula, meal replacement, beverage concentrates, distilled water bottles and containers over 5 liters. Refillable glass beer bottles are not included in MMSB's used beverage container program as local brewers regulate refillable beer bottle return. Brewers agents, breweries, and most convenience stores selling beer will accept back these bottles for store credit or sometimes cash at 10¢ per bottle being a full return of the initial deposit. A limited number of Green Depots do accept back refillable glass beer bottles for a 5¢ return depending on their location. Non refillable deposits sit in two categories with containers for non-alcoholic drinks, beer, miniature spirit bottles under 50ml and spirits in tetra-pak, gable top and pouch type containers being charged an 8¢ deposit and refunding 5¢. Containers for spirits primarily in larger glass and plastic bottles charge a deposit of 20¢ and refund at 10¢. Since 1997 over 3.37 billion containers have been diverted from landfill through Newfoundland and Labrador Green Depots. Additionally since 2013 Hebert's Recycling inc, has been collecting and processing all recyclable containers from Green Depot locations using its patented system of truck mounted recycling compactors to streamline recycling shipments from depots to centralized facilities.
Nova Scotia: Launched on 1 April 1996, Nova Scotia's deposit-return program applies to all ready-to-drink beverage containers excluding milk, milk products, soya milk and rice beverages. Other containers that are exempt from the program are certain meal replacements, formulated liquid diets, foods for very low energy diets, thickened juices, baby formulas, concentrates and non-alcoholic beverages in containers of 5 L or more. The organization responsible for managing the program is DivertNS. Like New Brunswick's program, Nova Scotia's deposit-return system is based on a "half-back" model where only half of the original deposit paid per container is refunded to the consumer. The non-refundable portion of the deposit is used as revenue by DivertNS to help pay for program costs. In 2014, the program collected 334 million non-refillable beverage containers for a recycling rate of 84%.
Prince Edward Island: The province's deposit-return system was launched on 3 May 2008 as a replacement to a law that had prohibited the sale of non-refillable soft drink containers. The program is overseen and administered by the Department of Environment, Energy and Forestry and covers all ready-to-drink beverage containers up to 5 L, except those used for dairy products, milk substitutes or nutritional supplements. Similar to the other Atlantic provinces, PEI's deposit-return system is based on a "half-back" model where only 50% of the original deposit paid is refunded to the consumer when he/she returns the empty container to a depot. In 2014–2015, PEI had a non-refillable beverage container recycling rate of 80% and a total container recycling rate of 82%.
Yukon: Introduced in 1992, Yukon's deposit-return program covers all ready-to-drink beverage containers, excluding those containing milk and milk substitutes. The program is managed by the Department of Community Services and requires consumers to pay a surcharge on the purchase of certain beverage containers, which includes a refundable deposit and a non-refundable recycling fund fee. Upon return of the empty container to a depot or processor, a portion of the surcharge is refunded to the consumer, while the non-refundable RFF is kept by the retailer and remitted to the territorial Recycling Fund, where unredeemed deposits also go. In 2014, Yukon had a non-refillable recycling rate of 82%. In May 2016, the Yukon government announced changes to the Beverage Container Regulation. These changes, which were expected to be implemented 1 August 2017, will affect the surcharges and refunds applicable to beverage containers including milk and milk substitutes and will simplify the regulation. Once the territory's new regulations kick in, all beverage containers will fall into two categories: 750 ml and less, including all milk & milk substitutes, and 750 ml and more.
Northwest Territories: Launched on 1 November 2005, Northwest Territories' deposit-return program covers all ready-to-serve beverage containers made of glass, plastics, aluminium, bi-metal, and mixed materials, including juice, milk and liquid milk products, soda, water, beer, wine, liquor and other alcoholic beverages. Excluded from the program are containers for infant formula; containers for milk and liquid milk products smaller than 30 ml; and powder milk. The Department of Environment and Natural Resources is responsible for administering the program. Similar to Yukon's program, the total surcharge per container includes a refundable deposit and a non-refundable handling fee. Whereas the refundable deposit is returned to the consumer when they return the beverage container to a depot, the non-refundable handing fee is put into the Environment Fund and is used to help cover program costs. In fiscal 2014, approximately 26 million beverage containers were returned for reuse or recycling, translating into an overall recycling rate of 89%.