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Bulgaria is seriously late with the deposit system

Larson: Every day without a national deposit system is equivalent to more garbage on the streets and missed business opportunities

Май 13, 2024 13:15 491

Bulgaria is seriously late with the deposit system  - 1

By the end of 2029, the deposit system must be fully operational in Bulgaria and throughout Europe to return plastic bottles. There will be vending machines throughout the country. The European regulation on packaging and packaging waste requires citizens to pay a deposit, which is fully refundable upon returning the empty bottle to the designated locations.

In Bulgaria, the amount of the deposit has not yet been determined, but it is believed to be around 20 cents. In countries where the deposit system already operates, the amount is between 10 and 25 cents.

One of the organizations offering expertise in deposit systems implementation is Reloop Platform. Anna Larson, Director of Circular Economy Development at the Reloop platform, visited Bulgaria to learn about the pilot project that was launched some time ago in two supermarket chains in Bulgaria. What is her opinion and recommendations regarding the introduction of the deposit system in our country, she stated in an interview for FACTS.

Ms. Lanson, from your practice and observations, what are the biggest challenges in the introduction of deposit systems in Bulgaria?

In my opinion, the most serious obstacle is the lack of a political solution in Bulgaria. In most European countries deposit systems have been established by industry and the retail sector mandated by Legislation introducing the deposit framework as a method of collecting beverage packaging. As a result of the Act, industry and retailers have proceeded with feasibility studies and business plans at their own expense.

How do you assess the situation in Bulgaria in relation to the deposit system?

Considering the obligations related to the collection target (77% in 2025) as well as recycled content (old bottles must be raw material for the production of new packaging) imposed by the European Union, Bulgaria is seriously behind schedule . Every day without a national deposit system equals more litter on the streets, lost value hidden in secondary raw materials and missed business opportunities for local entrepreneurs who could easily provide circular economy services and create green jobs related to collection , transportation and recycling.

What are the three main steps that Bulgaria needs to take to successfully introduce the deposit system, given the short time frame in which it needs to do so?

The absolutely necessary first step is a legislative decision to introduce the deposit system as a method of collecting beverage packaging. The legislative act sets the date for launching the system. In the period between the entry into force of the Legislation and the launch of the system, industry and retailers are required by law to establish a system operator structure and obtain a government license to operate. As it is in everyone's interest to ensure a fraud-free system and smooth implementation, it is important to establish the specification of the deposit system symbol to be placed on all deposit packages, as well as to define the technical parameters of the symbol and barcode on label.

Bulgarian manufacturers need enough time to prepare their production lines, taking into account the new packaging marking requirements.

How do you expect the introduction of the deposit system to affect the final Bulgarian buyer? In Bulgaria, the pilot program does not give real money to those who have returned bottles, but cash receipts with a barcode to provide to the cashier of the store and the amount to be deducted from their account.

Deposit systems are a method of collecting beverage packaging based on a deposit that is charged when the product is purchased and returned in full when the consumer returns the empty packaging to a licensed collection point. When the deposit packaging is returned, the consumer does not lose the value of the product. Currently, there is no deposit system in Bulgaria, and the existing pilot programs are based on the financial incentive offered to the consumer when returning the empty beverage packaging.

Similar to the existing pilot programs in Bulgaria, consumers will have to separate the packaging from depositable drinks and take them to a collection point. As with other countries where a deposit system has been introduced, the general environmental awareness of consumers is expected to increase. This is due to the fact that the deposit system is a nationwide framework for waste collection with accompanying national and effective information campaigns.

What should be the role of Bulgarian producers, traders and in general market participants for the faster introduction of the deposit system in our country?

Manufacturers and retailers are the key market participants in the use of the deposit system, as they are usually the ones who create the structure of a system operator. Pending legislation, economic entities usually develop feasibility studies and business plans to ensure the smooth implementation of a deposit system.

You say that the pilot program shows Bulgaria's potential for introducing the deposit system. What do you think it is based on what you saw during your visit?

Existing pilot programs in Bulgaria confirm that adding value to waste (currently this is an incentive, and in the case of the deposit system - the value of the deposit) leads to a better separation of recyclable materials by consumers. When I visited the collection points in Sofia, the number of visits had almost the same frequency as in stores in any other country with a deposit system in place. My observations on the ground are also confirmed by the data provided by Lidl, according to which 2 million beverage packages are collected monthly at 10 collection points. (And these numbers are increasing thanks to positive consumer engagement as well as the upcoming warmer season of the year). This level is similar to collection points in countries with a deposit system in place.

How do you assess the situation in Bulgaria in terms of recycling and turning old into new bottles? What is the potential?

As reported by Petcore Europe, recycling of PET materials in Bulgaria is very low. Current pilot projects based on cash incentives demonstrate that a national deposit system represents a significant opportunity to close the loop on materials used across the country. Currently, the bottles collected within the pilot program become the substrate for the production of new bottles with min. 30% recycled material, used for products sold in the stores of the chain that conducts the pilot project. The Bulgarian deposit system in its full scale will create this opportunity for all beverage producers and all product lines.