Welsh Government begins process to appoint DMO

By Oliver Catchpole

Published: 01 December, 2025

In a statement from Huw Irranca-Davies MS, the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, the Welsh Government has announced that it has begun the process of finding a Deposit Management Organisation (DMO) to run its Deposit Return Scheme (DRS).

Under the DRS, consumers pay a small deposit on specific, single use drinks containers at the point of purchase, that can then be redeemed when the item is returned to a collection point (such as a local supermarket).

Following the success of such schemes in Germany, Sweden and the Republic of Ireland, the policy is set to be introduced across England, Scotland and Northern Ireland in 2027. No proof of purchase will be required, meaning even containers found on the street will be able to be returned for a small sum.

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The Welsh Government has announced separate plans to introduce a DRS that – unlike the rest of the UK – will include glass containers.

Like many Deposit Return Schemes, it will be operated by a DMO, a not-for-profit organisation responsible for designing and running the infrastructure for the policy.

Applications for the DMO opened on 28 November and will remain open until 23 January 2026. Once the Senedd approves the DRS regulations, the new organisation will be appointed by Welsh Ministers in March 2026.

As in the rest of the UK, it is likely that the DMO will be an industry-led body made up of producers, retailers and other businesses in the supply chain, so that it can cater to the needs of both industry and consumers.

When the scheme was first announced there was concern from industry bodies, such as the WSTA, that the separate Welsh DRS risked confusion.

As Harpers reported at the time, Miles Beale, the CEO of WSTA, said that “the Welsh Government risks introducing regulatory chaos and greater costs for Welsh consumers. These plans will create complexities for supply chains, potentially leading to increased costs and reduced consumer choice as producers and the supply chain are forced to navigate a unique system in one part of the UK”.

However, in his statement, Irranca-Davies said that the Welsh Government had “undertaken extensive engagement with a wide range of businesses, representative organisations, individual sectors, recycling and reuse organisations, the Welsh Local Government Association and environmental organisations to inform our approach.

“This engagement highlighted industry’s strong preference for aligning the implementation dates for the Deposit Return Schemes within the UK. It also highlighted the need for a phased approach to glass and the introduction of reuse to manage the difference in the scope of Deposit Return Schemes”.

He added that the scheme has been adapted so that glass returns would be implemented in a phased approach, to ensure ‘interoperability’ within the UK.

This approach will be informed by a public consultation on the scheme which closed on 10 November.

Irranca-Davies concluded that “we have reached another major milestone in bringing forward a DRS that delivers for Wales. A DRS which will not only bring forward clear environmental benefits but will also bring economic opportunities for green growth whilst supporting our transition to a zero-waste and net zero Wales”.

Commenting on the statement, Travis Way, MD at EcoVend, a brand by international circularity specialists Reconomy, said: “By launching the process to appoint a Deposit Management Organisation, the Welsh Government appears to be making headway in moving the scheme from ambition to delivery. Securing the right DMO will be critical - the organisation chosen will set the tone for how efficiently, transparently and effectively the scheme operates from day one.”

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