Q & A DRS

The aim of this system is to collect from the market and introduce packaging into a circular economy, helping Romania reach the national collection and recycling targets set at European level. These call for 77% of PET placed on the market to be collected by 2025 and 90% by 2029. The system will also help to meet and even exceed the new collection and recycling targets for the remaining material types, namely 75% for glass and 60% for aluminum, from 2030.

First of all, the deposit-refund system will help to protect the environment, as packaging collected through the DRS will be diverted from landfill or nature. In this way, they will be introduced into a truly circular economy and both we and future generations will be able to enjoy a cleaner and greener environment.

In addition to these benefits, DRS is a tool that can increase collection targets for beverage packaging waste and help Romania reach the targets of new European regulations that require high percentages. The imposed plastic collection target is 77% by 2025 and 90% by 2029. In addition, the DRS will give producers access to rPET (recycled pet packaging) and is a solution that will enable them to reach targets of 25% by 2025 and 30% by 2030 of packaging made from recycled materials.

The deposit-refund system is a completely new one for Romanian consumers. As it is a new system, they need to get used to it, so for the first 2-3 years, the deposit should remain at a fixed amount.

Thus, the guarantee has been uniformly set at 0.50 RON, regardless of the type of packaging or its content. The value was chosen so that it was high enough to motivate the consumer to return the packaging, but low enough not to be perceived as a significant price increase. A unit value ensures simplicity, at least in the initial phase of the system, as it is difficult to operate with more than one value, but the value of the guarantee can be adjusted over time as consumers get used to the system.

After emptying the packaging, the consumer will be able to return it to any collection point set up by the retailers, i.e. any shop in Romania. In exchange for the empty packaging, the consumer will receive the value of the deposit originally paid, without having to present the receipt or return the product to the shop where it was originally purchased. Retailers will also be free to decide on the type of collection: automatic or manual, depending on their consumer flow.

Collection centres will be organised by all retailers regardless of size. They will be obliged to organise a return point where consumers can bring their packaging, but the collection of packaging must not block the retailer's core business. Once the packaging has been collected, the deposit-refund system’s manager will be obliged to organise an efficient system to take back empty packaging as quickly as possible, so as not to overcrowd the premises where the retailer will store it. The implementation of the DRS will help to develop the recycling market, with recyclers having access to quality raw material for recycling. This will make it easier for producers to access quality rPET.

The company currently has three private shareholders and one public shareholder:

• Soft Drinks Producers Association for Sustainability
• Romanian Brewers Association for the Environment
• Retailers Association for the Environment
• The Romanian State, through the central environmental authority - the Ministry of Environment, Water and Forests, which holds 20% of the shares.
   

RetuRO Sistem Garanție Returnare S.A. was officially licensed on 24 August 2022 by HG 1074/2021, and now begins the implementation period of the system, which we estimate will be operational from 2024. According to the approved schedule, RetuRO will carry out the following activities for the operationalization of the DRS:

Administrative:

• Finalization of administrative processes, recruitment of company staff and selection of suppliers.

Financing:

• Finalizing documents, applying for and obtaining the necessary funding for the implementation of the system.

Infrastructure:

• Development and implementation of the IT infrastructure and operational infrastructure.

System registration:

• Registration of all producers and importers of beverages as well as retailers. This process involves the signing of approximately 100,000 contracts.

Automated equipment:

• Ordering of automatic collection equipment, testing and installation by retailers.

Infrastructure implementation:

• Construction of counting centers (organized by the DRS administrator) and return centers where consumers can return packaging (organized by retailers), selection of suppliers at logistics level.

Communication campaign:

• Implementation of a nationwide communication campaign for consumers.