The Bulgarian perspective on the Deposit Return System (DRS)

Overview of the draft Waste Management Act

The draft amendment envisages the creation of a National Deposit Operator (NDO) managed and organised by the state. The project proposes that the NDO should be a public enterprise responsible for organising and managing the operation of the national deposit system. The system would be created and funded through contributions from producers, unclaimed deposits, and proceeds from the sale of materials derived from packaging collected within the system.

According to the draft text of the WMA, each producer will be obliged to charge distributors and end-distributors the applicable deposit amount for each package. Failure to do so may result in penalties ranging from EUR 2,500 – 25 000. For each bottle, the producer must pay a deposit to the NDO. All deposit amounts will be determined by a future regulation. The deposit is charged for each product in a deposit package, per package, and is separate from the price of the product itself. This deposit is paid by the end customer upon returning the deposit package to the return equipment provided by NDO. The NDO will refund end-distributors for the amounts paid to cover deposits. It will also reimburse the costs incurred by entities that collect deposit packaging and carry out related handling and storage activities.

How have businesses responded?

Affected sectors support the core idea of the DRS regarding its ecological impact and the guaranteed method to achieve a 70 % recycling rate for packaging waste in 2030 (Eurostat data).

Some of the largest companies – end-distributors – have already implemented systems to promote the circular economy, using eco vouchers that can be redeemed at the relevant store chain without requiring customers to pay the deposit fee. 

However, representative organisations of obligated industries – including the Bulgarian Soft Drinks Association, the Union of Brewers in Bulgaria, the Modern Trade Association and the Bulgarian Industrial Association – together with environmental associations and the National Association of Municipalities in the Republic of Bulgaria, have submitted statements opposing the draft WMA.

Among the concerns expressed in the opinions, the lack of discussion with stakeholders stands out. Businesses acknowledge non-compliance with the legislation regarding the absence of discussion on a matter of public importance. In previous years, public consultations were held but were not taken into consideration, and in 2025 the working groups were dismissed by the Minister of Environment and Water.

Among the strategic objectives set out in the 2022 Draft of the Strategy for Transition to a Circular Economy 2022-2027, it is noted that, based on the analyses prepared to date, the introduction of a separate collection system for packaging waste is associated with high implementation costs. The strategy further provides that a decision should be taken by the end of 2023, following consultations with producers, the commercial sector, organisations and other stakeholders.

There is an expectation and need for a public debate in which interested parties can submit proposals and comments regarding amendments to the WMA.

Legal uncertainty looms over proposed model due to undefined rights and obligations  

The proposed model, under which the national deposit system is entirely managed, organised and controlled by the state, without the involvement of representatives of organisations and traders, raises concerns among businesses regarding a lack of transparency, unpredictability and potential violations of competition law.

Issues of legal significance for the functioning of the deposit system and related financial arrangements are not addressed in the proposed provisions of the draft. Questions regarding the organisation, activity and scope of the system, as well as financial obligations such as deposit fees, are to be regulated in secondary legislation within six months of the draft's entry into force.

In the course of political discussions, the proposed amendments to the WMA could result in a policy that lacks sufficient transparency. The industry's vision for the DRS is that it should be based on a stable, clear and well-organised regulatory framework.

Looking ahead

The issue of the deposit return system is a frequently raised topic. According to businesses, a project of this magnitude should be discussed with the interested parties, as discussions on the matter have been held in previous years. Consideration should also be given to best practices from already functioning national deposit systems in other Member States.

author: Dilyana Baeva