The Welsh government has announced it has appointed industry body Exchange for Change as the new deposit management organisation for the launch of its deposit return scheme.
The move comes amid growing pressure on DRS bosses to pave the way for an interoperable DRS system across the UK ahead of a planned launch in October next year.
A growing number of industry sources have warned that time is running out to prevent a collapse of the scheme, with the Welsh plans to include glass seen as a major stumbling block.
However, the appointment of the DMO will raise hopes that a joined-up launch is still possible.
In a statement today Welsh cabinet minister for environment Llyr Gruffydd said: ”I am pleased to announce the appointment of Exchange for Change as the deposit management organisation for the deposit return scheme for drinks containers in Wales.
”The scheme will include plastic (PET), metal and glass drinks containers from day one, but in line with the Deposit Scheme for Drinks Containers (Wales) Regulations 2026 a four-year transition period will apply to glass drinks containers, during which glass drinks containers will be exempt from labelling requirements and carry a zero pence deposit.
He added: “This marks the next step towards delivering a DRS for Wales, which will collect empty drinks containers to tackle litter, keep communities cleaner, further improve Wales’ recycling and support the transition from recycling to reuse.
”The appointment follows a robust process to identify a deposit management organisation which will support the establishment of the scheme and work in partnership with producers, retailers, local authorities and other partners to successfully implement the DRS in Wales.
The Welsh government will work closely with Exchange for Change and delivery partners as they develop the return network, collection and processing infrastructure, producer registration arrangements, and operational systems in readiness for the scheme’s launch in October 2027.”
Exchange for Change, which has already been appointed by the Westminster government to run its DRS, was the only bidder on the table to run the Welsh system.
However, its plans had been rejected by the previous Welsh Labour administration.
In February the UK government gave the go-ahead under the Internal Market Act for Wales to launch a breakaway version of he scheme which would include glass from the start of the scheme. One of the conditions was a transition period that would mean glass containers would have zero deposits and not have labelling requirements for DRS for the first four years of the scheme.
Drinks bosses have warned Wales faces a “mass market withdrawal” describing the idea of a disjointed scheme as a “recipe for disaster” that would impose extra costs on producers, despite the transition period, and open the door to a wave of fraud.
Sources said today’s announcement was vital to restore confidence in hopes of a DRS launch across the UK in 2027.
Earlier today The Grocer reported Exchange for Change had strongly insisted the rollout was on course to hit the October 2027 start date, after new fears were raised that the launch was facing “collapse”.
Waste processors and recycling bosses have warned government that plans are facing a series of logistical barriers too serious to overcome before next year’s deadline.
Meanwhile, some retailers are privately continuing to express major concern over the cost of the rollout.
The delays by Wales to appoint an administrator and its insistence on including glass has been at the heart fo the issue, although it is not clear how a compromise can be reached on glass that will prevent the chaos that many have predicted would result from different models.
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