Hungary introduces Deposit Return Scheme for drink containers

HUNGARY – Hungary has unveiled a new deposit return scheme (DRS) targeting single-use drink container recycling, commencing January 1, 2024.

This initiative aligns with Hungary’s broader ambition to propel a circular economy and mitigate litter while adhering to the EU’s Single-Use Plastics Directive, which mandates a 90% collection rate for plastic beverage bottles by 2029.

Encompassing various single-use drink containers (excluding milk-based ones) ranging from 0.1 to three liters, the DRS involves consumers depositing Ft50 upon purchase, reclaimable upon return.

TOMRA, a leading reverse vending machine (RVM) provider, collaborates with MOHU, Hungary’s central system administrator for the scheme.

Over a thousand high-capacity RVMs have been strategically installed nationwide, primarily in large retail settings, automating container identification, sorting, and refunding.

Dávid Bakos, Managing Director of TOMRA Hungary Collection, lauds Hungary’s stride toward a circular future, hailing the DRS launch as transformative for waste management and recycling promotion.

He expresses eagerness to collaborate further with MOHU, fostering public engagement and facilitating an accessible network of recycling return points.

This move by Hungary follows similar initiatives in the Australian state of Victoria and Romania in November 2023.

In another development, Germany has postponed the imposition of a new tax on non-recycled plastic packaging, previously slated for implementation in 2025.

The delay aims to afford authorities time to streamline regulations and alleviate administrative burdens.

The decision to defer this tax stems from concerns raised by five plastic packaging industry associations, arguing against its efficacy and foreseeing potential cost hikes for consumers.

Martin Engelmann, Director of IK Industrievereinigung Kunststoff Verpackungen, representing German plastic packaging manufacturers, underscores the ambiguity surrounding payment allocation and tax brackets, leading to industry uncertainty.

He contends that such a populist tax on plastics clashes with Germany’s existing stringent packaging regulations, causing wavering investment decisions and prompting industry plans to relocate production abroad.

Originating from the German government’s response to cover the EU budget gap post-Brexit, this tax, earmarked for non-recycled plastic packaging waste, has yet to be passed onto packaging producers, differing from approaches taken by Italy and various European nations, which fund it from their federal budgets.

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