Container-deposit laws, also called deposit-refund systems, are rules that require a small amount of money to be collected when people buy drink containers. This money is given back to the person who returns the container to an approved place, like a store or a special center. These laws are designed to help people recycle more and reduce waste.

Governments may create these laws to support recycling programs, 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. A small deposit can encourage people to clean up litter, which can help poor individuals and non-profit groups earn money. These laws also help protect landfills by making containers last longer before being thrown away.

If a deposit is not returned, the money is usually kept by the companies that sell drinks to cover the costs of the program, such as paying stores or centers to collect and sort containers. In some cases, the money may be given to the government to support environmental projects. Studies show that these systems are very effective, with most containers being returned by consumers, often reaching return rates of 90% or more.

History

In 1799, A & R Thwaites & Co in Dublin, Ireland, began offering artificial "soda water" and paid 2 shillings per dozen for returned bottles. Around the same time, Schweppes, another company that made artificial mineral water, also had a recycling plan starting about 1800, even though no laws required it. Scottish companies that bottled drinks also chose to start similar programs to encourage people to return bottles for reuse. In 1984, Sweden created a standard system through laws that required deposits on PET bottles and aluminum cans.

British Columbia’s deposit-return system, started by law in 1970, is the oldest of its kind in North America.

Laws by country

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

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

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. As of 2021, nearly all provinces and territories in Canada have adopted similar systems. Nunavut is the only Canadian region that has not yet implemented a deposit-refund system. In Ontario, only containers with alcoholic beverages have deposits. In Manitoba, only beer containers are part of the deposit scheme.

Deposits for containers range from 5 to 40 Canadian cents, depending on the material, size, and whether the container holds an alcoholic or non-alcoholic beverage.

Below is a summary of each program:

• British Columbia: The program originally covered soft drinks and beer. It later expanded to include all ready-to-serve beverages, such as bottled water, juice, and alcohol. Two groups, Encorp Pacific and Brewers Distributor Ltd. (BDL), manage the system on behalf of producers. In 2017, the program recovered over 1 billion containers, with a return rate of 75.8%. Bottle deposits increased from 5 to 10 Canadian cents in 2019. As of 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 smaller 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 applies to 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 and returned 405.6 million containers in 2014–2015, with an 87% return rate.

• Manitoba: The program, started in 2010, applies only to beer containers. Deposits are 10¢ or 20¢, depending on the size. Other containers (except milk) are charged a 2¢ non-refundable 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. Refillable bottles are washed and reused by brewers. In 2014–2015, the program achieved an 89% recycling rate for non-refillable containers and 98% for refillable beer bottles.

• Quebec: Quebec’s system, started in 1984, covers beer and soft drink containers. As of March 2025, all ready-to-drink beverages from 100ml to 2L have a 10¢ deposit. Boissons Gazeuses Environnement (BGE) and Recyc-Quebec manage the programs. In 2014, the system achieved a 78% recycling rate.

• New Brunswick: Created in 1992, the program covers non-refillable beverage containers under 5 liters, including soft drinks, beer, and wine. Milk and apple cider containers are exempt. Encorp Atlantic Inc. and New Brunswick Liquor manage the program. The system uses a "half-back" model, where only half of the deposit is returned to consumers. The other half funds program costs and the province’s Environmental Trust Fund. In 2014, the program achieved a 73% recycling rate.

• Newfoundland and Labrador: In 1996, the provincial government created the Multi Materials Stewardship Board (MMSB) to manage waste diversion programs. The following year, MMSB started licensing recycling depots, which are now called Green Depots. There are 55 Green Depots across the province.