Deposit Systems across Europe: Cornerstone of the Circular Economy

The German deposit system DPG Deutsche Pfandsystem GmbH has turned 18 years old – and has therefore completed the step to adulthood! It was one of the first deposit systems to be established, and it is considered one of the most successful ones in Europe. The DPG scheme was a pioneer in the implementation of a new principle devised by a young Swede, put into action for the first time in a large European market by the then German Minister for the Environment, Klaus Töpfer. Following this proposition, it was no longer just the authorities that were to ensure better waste management, but also the manufacturers themselves. He called it “extended producer responsibility” (EPR) and coined a new guiding principle for the sector. A short time later, at the United Nations Conference in Rio in 1992, the precautionary and polluter pays principle was discussed internationally for the first time.

How It All Began: The Origins of the German Deposit System and Extended Producer Responsibility

The mandatory element of the deposit system was first implemented in Germany in 2003, but it was only thanks to the work of the DPG that all political requirements were implemented quickly and efficiently by setting up a network and providing administrative support for the system-relevant processes. This created legal certainty for all system participants and system partners involved. Since its introduction in 2006, the DPG system has had a noticeable steering effect on the circularity of the German packaging market and today provides those involved a source of resources in the form of valuable plastic recyclates and aluminium.

A consistent goal right from the start: DPG's deposit system for labeled disposable drinks packaging, which has been firmly integrated into sustainable material cycles from the outset, makes a significant contribution to reducing waste and conserving resources. Return rates of more than 98 percent underline the broad consumer acceptance and the ecological success of the DPG System, which is one of the most efficient deposit systems for disposable drinks containers in Europe.

Extended producer responsibility (EPR) is now one of the cornerstones of economic policy worldwide. In 2008, the European Union was the first political institution to adopt this principle, paving the way for a more sustainable and efficient use of resources. The European example prompted the Organization for Economic Cooperation and Development (OECD) in the early 2000s to recommend this deposit principle to increase recycling targets and open up new, valuable secondary markets.

Deposit vending machines for drinks packaging were just the beginning and the principle of collection and reuse was extended to other materials and material flows: This heralded the end of the linear economy, and deposit systems have become key players in sustainable economic growth.

Current status of implementation in Europe

A look beyond Germany's borders shows that the deposit system model has indeed caught on. The Swedes started with the first take-back systems for cans, some Nordic countries followed suit, but despite the convincing results after the introduction to the German market, not everyone was equally convinced. Differently designed and successful deposit systems now also exist in: Denmark, Estonia, Finland, Hungary, Iceland, Latvia, Lithuania, Malta, the Netherlands, Norway, Romania, Slovakia and Sweden. And since the beginning of 2025, a new single-use deposit system for plastic bottles and beverage cans has also been set in place in Austria in order to increase collection rates and achieve sustainability targets.

This development is being systematically continued by the EU Packaging Regulation (PPWR) adopted in February, which will be legally binding from 2026 and provides for the introduction of deposit systems for single-use drinks packaging in all member states.

Roughly speaking, two types of deposit systems have emerged, the existence of which is now secured by the PPWR, and, as established, functioning systems are to remain in place:

A The centralized system organization

The system operator is involved in the operations: It collects the deposits and manages them. In some cases, it even owns the take-back infrastructure and is responsible for the logistical processes through which the returned materials are sent for high-quality recycling.

B The decentralized system organization – such as the DPG

The system operator creates suitable organizational, legal and technical framework conditions. However, the operator in this model is not operationally involved and does not manage deposits and does not own take-back infrastructure or materials.

There are now already 17 member states in Europe in which deposit systems for one-way drinks packaging are successfully laying the foundations for a functioning circular economy.

The German deposit system is currently the largest deposit system in the EU with more than 18 billion one-way drinks packaging per year. With a return rate of more than 98 per cent, it is also one of the most efficient. With more than 18 years of experience as a deposit system operator, the DPG is the point of contact for political representatives as well as other member states, retailers and industry representatives – everyone who faces challenges of introducing a deposit system. 

The DPG has initiated and successively expanded a highly efficient, self-sustaining network in which more than 1000 stakeholders now cooperate. It is resilient – in other words, it is designed in such a way that it can react flexibly and remain scalable even in the event of future expansions.

Many calls and visits to the DPG in recent weeks confirm that the new requirements from Brussels are also causing things to move all across Europe. The DPG is always happy to report on its experiences and share them with its European neighbors: from establishing official interfaces to the design of efficient system control and the use of security technology.