Wales becomes first nation to adopt digital deposit return scheme
The Welsh Government has committed to including a digital option within its Deposit Return Scheme, with tech developed by Polytag already in place across much of the country.
Wales has become the first country in the world to commit to including a digital solution in its Deposit Return Scheme (DRS), with technology from Welsh firm Polytag at the heart of the rollout.
Announced on 22 July, the move places Wales at the forefront of circular economy innovation, offering consumers a new way to reclaim deposits without visiting physical return points.
Under the new model, households will scan a unique QR code on containers using a mobile app and recycle them via existing kerbside collections. The approach offers an alternative to the traditional return-to-retail system using reverse vending machines (RVMs), and is aimed at improving convenience and boosting participation.
Infrastructure already in place
The necessary technology for a digital DRS (DDRS) is already operational. Polytag’s Plastic Detection Units now cover 50% of the UK’s household waste stream, including four government-funded sites in Wales.
Polytag CEO Alice Rackley said: “This is the breakthrough moment we’ve championed since the UK first proposed a DRS in 2018. The Welsh Government’s bold move to adopt a digital-first approach isn’t just progressive, it’s visionary.”
She added: “By putting cutting-edge technology in consumers’ hands, they’re making recycling smarter, simpler and more rewarding… This is innovation with impact, and it’s just the beginning.”
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The announcement follows successful trials of DDRS in Wales. In a 2021 pilot in Conwy, 90% of registered households scanned four or more bottles within four weeks, while 73% scanned all six.
Major retailers are already backing the technology. M&S recently launched invisible UV-tagged products using Polytag’s solution, while Ocado Retail customers redeemed 20,000 20p rewards for scanned containers in 2023.
Government and industry support
Speaking at a Westminster Energy, Environment & Transport Forum event on 18 July, Andy Rees, head of waste strategy at the Welsh Government, described the digital route as “a choice of innovation and flexibility.” He highlighted the value of the country’s 1.2 million return points — households — in enabling a more accessible recycling system.
Dr Adam Read, director of external affairs at SUEZ, also questioned why other parts of the UK had not yet adopted a digital model, given the environmental and logistical challenges of scaling a national RVM infrastructure.
More than 60 businesses, including Co-op and Ocado, called for digital to be included in DRS legislation in 2023.
With this commitment, Wales sets a new benchmark in DRS design and signals a potential shift in how recycling schemes could be implemented in the UK and beyond.
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