A modern deposit return system: Quebec, Canada

The first generation of Quebec’s deposit return: 1984-2022 

Quebec’s initial deposit system charged consumers a deposit between 5 and 20 cents (depending on the beverage type and container size), which was refunded in full when they returned it to a beverage retailer. Redemption centers (or “depots”) were not offered as alternative return locations. This first iteration of the program only included carbonated soft drinks and beer. Each beverage category formed their own Producer Responsibility Organizations (PRO) to manage the DRS responsibilities of their beverage company members, one PRO for beer and one PRO for soda. 

The catalyst for change in Quebec’s deposit return system  

Over time, the return rate of deposit containers stagnated around 72%. Given high-performing deposit systems reliably achieve return rates of 90% and higher, stakeholders saw a need for intervention. At the same time, beverage categories that hadn’t existed in 1984, like bottled water, had become popular yet were not eligible for a recycling refund. The curbside recycling system, managed by its own PRO, by contrast achieved a 52% recycling rate for common recyclables.ⁱⁱ  

In addition, Quebec is home to a local circular economy complete with glass, PET and Tetra Pak container manufacturers and processors. With relatively low return rates in the deposit system, many of these manufacturers were forced to import material from outside the province, at higher cost and greenhouse gas emissions. Modernizing the DRS presented an opportunity to support local manufacturing, reduce litter, increase recycling, reduce GHG emissions from producing packaging and increase jobs. When the government polled the public, eight out of 10 households agreed that a deposit system with all beverages and a meaningful deposit value would increase recycling, make redemption simpler and motivate them to return their containers.ⁱⁱⁱ 

Key features of Quebec’s deposit return system modernization 

To revitalize its DRS, Quebec reviewed the best practices of deposit programs that reach 90%+ return rates, namely: circularity, performance targets, convenient and accessible refunds, system management, and system integrity.^iv  

In practical terms this meant Quebec: 

• Set performance targets including a 90% return rate: An ambitious return rate target is critical for high-performing DRSs, because it clarifies the objective of the system among all parties and aligns investment decisions amongst the beverage and retail industries. A meaningful deposit value on its own can enable average return rates, but reaching 90% is only possible with a thoughtful and convenient return infrastructure. Quebec set both collection and recycling targets by material type. The regulations state if the targets are missed by more than 10% for two consecutive years, the deposit value can be increased.^v 
• Made more material types eligible for a deposit refund: Previously only one-way cans and glass bottles and refillable glass bottles were included in the system. The reforms added plastic bottles (March 2025) and Tetra Pak paper cartons (2027). Containers less than 100ml and greater than 2 liters and pouches are excluded. 
• Made more beverages eligible for a deposit refund: The reforms stated that eligibility in the system would be determined by the recyclability of the container material, not the liquid inside. Previously only soda, beer and flavored water were eligible for a refund. In November 2023, all beverages in metal cans were added to the system, all beverages in plastic bottles will be added in March 2025, and in 2027 wine, liquor and beverages in Tetra Pak paper cartons will be added. Ineligible beverages include concentrates, ready-to-drink beverages, condiments, and medicines. 
• Raised and standardized the deposit value to 10₵: Previously all cans were only eligible for a 5₵ deposit, smaller one-way glass bottles were at 10₵ and larger glass bottles were at 20₵. The reforms made all eligible containers 10₵ with the exception of glass bottles larger than 500ml, which were set at 25₵. The meaningful deposit value was designed to engage consumers to reach higher recycling rates. 
• Streamlined the DRS management from two PROs into one: To simplify the transition, policymakers required the two entities managing the DRS to form one new PRO. The centralized model for managing EPR programs through a PRO is more common in Canada where most provinces have existing EPR for packaging programs and DRSs. In Quebec, the new PRO, the Quebec Beverage Container Recycling Association (QBCRA/AQRCB) has been designated by the regulatory body, Recyc-Quebec, to carry out implementation of the reforms such as investing in new return locations, negotiating contracts with retailers, and communicating with the public. 
• Adopted a hybrid redemption system and guaranteed redemption access through a convenience standard: To balance the consumer’s right to easily get back their deposit money and the needs of retailers, policymakers set a minimum number of return locations be provided by the beverage industry. Policymakers determined at least 1,200 return locations were needed in the new system, and stipulated regions should have access to a certain number of return locations depending on population. The regulations place responsibility for this on the beverage industry-run PRO. Retailers 375 square meters and up are required to take back containers. The PRO is required to negotiate sorting, pickup and compensation with participating retailers. If the parties cannot agree on terms, they are escalated to a formal mediation process. Retailers sharing a parking lot may collectively finance a return center on their lot. To be eligible to open a return center, participating retailers must be located within a certain distance of one another depending on the area’s population. In addition, to serve high-volume redeemers, the beverage PRO is authorized to open high-volume depots. 
• Modernized the EPR for Packaging system at the same time: Quebec has operated an EPR for Packaging program since 2006. The system was achieving subpar performance, with a 52% household recycling rate and minimal recycling of glass.^vi Policymakers undertook modernization of both the DRS and the EPR for Packaging program at the same time, including setting binding performance targets for both collection systems. 

Quebec’s deposit return system modernization has already started to make an impact 

By reaching the 90% return rate, a government study projected that each year the DRS would divert 50,500 tons from landfill and avoid the GHG emissions equivalent to removing more than 5,600 cars from the road for one year. The same study found that modernizing the DRS and the curbside collection system would create around 500 new jobs.^viii