Container-deposit laws, also called deposit-refund systems, require a small amount of money to be collected when a drink container is bought. This money is returned to the buyer if the container is returned to a specific place, like a store or a recycling center. These laws help ensure that containers are reused or recycled instead of being thrown away.

Governments may create these laws to help the environment in several ways. They can increase recycling efforts, reduce the use of materials and energy for making containers, and keep drink containers from being littered on roads, in waterways, or on public and private land. Cleaning up littered containers can also provide income for some people and groups that help care for communities. These laws also help reduce the need to use taxpayer-funded landfills by keeping containers out of them for longer.

If the deposit is not returned, it is often kept by the companies that sell the drinks to help cover the costs of the program. In some cases, the money may be given to the government to support environmental projects. Studies show that these systems are usually very effective, with most containers being returned by consumers, often reaching return rates of 90% or higher.

History

In 1799, A & R Thwaites & Co in Dublin, Ireland, began offering artificial soda water. They paid 2 shillings for every dozen bottles returned. Schweppes, another company that made artificial mineral water, also had a similar policy for returning bottles around 1800. This happened without any laws requiring it. Scottish companies that bottled drinks also voluntarily started returning bottles for reuse. In Sweden, a system where people received money back for returning PET bottles and aluminum cans was created by law in 1984.

British Columbia started a deposit-return program in 1970. This is the oldest such program in North America.

Laws by country

By 2005, the beverage industry in Kenya used a deposit-refund system for glass bottles. This system became popular among wholesalers, retailers, and consumers in Nairobi and across the country. At that time, a deposit of 10 Kenyan shillings was placed on soft drink bottles, and 25 shillings was placed on beer bottles.

South Africa does not have an official deposit-return scheme for packaging or plastics. However, some companies, like Coca-Cola, have successfully created deposit-return systems for their own products. These systems were introduced by manufacturers in about 1948 without government involvement. Around 75% of beer containers, 45% of soft drink containers, and some wine and spirits bottles are included in these schemes. In 2012, South Africa was one of the few countries that included plastic bottles in its deposit-return systems. Similar systems also exist in South Africa for batteries, cars, and tyres.

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

In 1970, British Columbia became the first Canadian province to require a deposit-return system for soft drinks and beer containers. By 2021, nearly all provinces and territories in Canada had adopted similar systems, except Nunavut. In Ontario, only containers holding alcoholic beverages have deposits. In Manitoba, only beer containers are included in the deposit scheme.

Deposits for containers range from CAD$0.05 to CAD$0.40, depending on the container’s material, size, and whether it holds an alcoholic or non-alcoholic beverage.

Below is a summary of each program:

• British Columbia: The program originally covered carbonated soft drinks and beer but now includes any ready-to-serve beverage sold in sealed containers, such as bottled water, juice, and alcohol. Two groups, Encorp Pacific and Brewers Distributor Ltd., manage the program for different types of beverages. In 2017, the program recovered over 1 billion containers, with a return rate of 75.8%. Bottle deposits increased to CAD$0.10 from CAD$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. Containers 1 liter or less cost 10¢, and larger containers cost 25¢. Containers are returned to depots and collected by the Alberta Beverage Container Recycling Corporation. In 2014, over 2 billion containers were returned, with an 83% return rate.

• Saskatchewan: Established in 1988, the program covers all ready-to-serve beverage containers except those for meal replacements or dietary supplements. Milk and milk substitutes were added in 2017. SARCAN Recycling manages the program. In fiscal 2014–2015, 405.6 million containers were returned, with an 87% return rate.

• Manitoba: The program, started in 2010, applies only to beer containers, with deposits of CAD$0.10 or CAD$0.20 depending on size. Other containers (except milk) are charged a non-refundable CAD$0.02 fee and can be recycled through municipal programs.

• Ontario: The Ontario Deposit Return Program (ODRP), started in 2007, covers wine, spirits, and imported beer containers. Alcoholic beverage containers are returned to 879 locations, including beer stores and depots. In 2014–2015, the program achieved an 89% recycling rate for non-refillable containers and a 98% return rate for refillable beer bottles.

• Quebec: The program, started in 1984, covers beer and carbonated soft drink containers. As of March 2025, all ready-to-drink beverages between 100ml and 2L have a CAD$0.10 deposit. Two groups, Boissons Gazeuses Environnement and Recyc-Quebec, manage the program. In 2014, the program achieved a 78% recycling rate.

• New Brunswick: The program, created in 1992, covers non-refillable beverage containers 5 liters or less, including soft drinks, beer, and wine. Milk and apple cider containers are exempt. The program uses a "half-back" model, where only half of the deposit is refunded to consumers. In 2014, the program achieved a