Implementation and Challenges of the Deposit Return System in Romania

Implementation and Challenges of the Deposit Return System in Romania Presented by: Dr. Spartaru-Negura Date: April 27, 2025 The Deposit Return System in Romania ("DRS") - A huge step towards a greener and a more sustainable future of Romania - Romania struggles with the waste management, from illegal landfills to minimal recycling, many infringement procedures being under scrutiny of the European Union authorities => "We all want DRS to transform our country from a land of landfill to a land of recycling." (Minister Fechet) - DRS = an important component of the circular economy: • Consumers and end-users pay a guarantee of 0.50 RON (i.e. Ten euro cents) + product price • When purchasing from a retailer any product from certain categories of beverages (i.e. Beer, beer mixes, alcoholic beverage mixes, cider, other fermented beverages, juices, nectars, soft drinks, mineral waters and drinking waters of all kinds, wines and spirits), • In primary non-refillable glass, plastic or metal packaging • With volumes between 0.11 and 3 1 inclusive • When returning the packaging to a collection center => the guarantee is recovered, regardless of where the packaged product was purchased and without being required to present the tax receipt What Is The Current Status Of The DRS Implementation In Romania? - Romania must attain the recycling objectives of the EU - Committed to regulate and to transpose the DRS into national legislation by 1 January 2021? - The Romanian authorities postponed this deadline to 30 November 2023, according to the Government Decision No. 1074/2021 (RoOJ no 955/6 October 2021) - The DRS administrator has been selected and started operating it - RetuRO System Garanție Returnare S.A. - The revenues of the DRS administrator, including unclaimed guarantees, are used exclusively to support the operation and increase the efficiency of the DRS - Romanian beverage producers, through RetuRO, are obliged to achieve the following minimum annual DRS packaging return targets for recyclable glass, plastic or aluminum packaging within DRS set-up in Romania Material / Year objectives 2024 2025 2026 Glass 65% 75% 85% Plastic 65% 80% 90% Metal 65% 80% 90% What is RetuRO? - About RetuRO • RetuRO is a company established by a consortium of three private shareholders and one public shareholder and appointed by law as administrator of the Deposit-Return System. • The company was formed as a dually managed company, based on the notforprofit principle, which means that it has undertaken in its articles of association to reinvest any profits exclusively in the development of the system. - • RetuRO's vision We aim to create a country where everyone feels responsible for their environment and wants to keep it clean. We believe ReturoSGR inspires the desire for positive change, leading the way and providing the best solution for efficient collection and recycling. • We motivate today's citizens to act, so that tomorrow's generations can enjoy a cleaner, greener, more prosperous country. - RetuRO's shareholding • RetuRO Sistem Garantie Returnare S.A. was established, according to the legislation in force, by the representative associations of beverage producers and retailers to manage the deposit-refund system Implemented in Romania. - Subsequently, the company adopted the Romanian State as a shareholder. RetuRO's mission • RetuRO's mission is to implement Romania's largest circular economy projectthe deposit-refund system. With this project, we will be able to have a cleaner and greener environment and reach the collection and recycling targets set at European level by the new EU circular economy package. • The Deposit-Return System will boost the recycling market in Romania, providing significant quantities and quality of raw material. Challenges of the Romanian DRS After the Launch of the System Fake start of the DRS on 30 November 2023? • 1. Producers have not printed the packaging with the DRS logo, so the number of the packaging put on sale was very small => the products which did not bear the DRS symbol on the label could be sold only until 30 June 2024 • 2. Traders did not have the special machines for recycling packaging + the best practices guide drafted by RetuRO was not available at the launch of the system + the bags or seals to put the packages in were not provided on time => unhappy traders! Even now some traders "refuse to participate in this national effort and described their involvement in the DRS as "a nuisance" • 3. RetuRO did not made available the application allowing the traders to scan barcodes of products and determine whether they are part of the DRS or not (and therefore carry the guarantee or not) + one day prior to the launching of the DRS, one single packaging numbering and sorting hub (the center in Bontida, Cluj) = insufficient for the whole country (NOW 7 centers!) • 4. Consumers and the end-users were insufficiently informed and familiar with what they had to do + even before the launch of the deposit return system, people were collecting packaging that did not have the DRS logo in order to get their guarantee amounting to 0.50 RON once the system comes into force