Welsh government launches DRS DMO application process

The Welsh government has opened the application process to appoint a Deposit Management Organisation (DMO) for its forthcoming Deposit Return Scheme (DRS). The move was announced in a written statement by Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs.

In the statement, the minister said the government had commenced the process to appoint a Deposit Management Organisation, describing it as a key step towards delivering the scheme. He noted that extensive engagement with businesses, local government, recycling organisations and other stakeholders had informed the updated approach.

According to the statement, industry stakeholders expressed a strong preference for aligning implementation dates with other UK nations and taking a phased approach to including glass and reuse. The Welsh government said it has adjusted the scheme design accordingly to support interoperability across the UK while still delivering environmental benefits specific to Wales.

The application window for prospective DMOs opened on Friday, 28 November, and will close on 23 January 2026.

The minister said that drawing from international best practice will be essential, adding that reuse will form a core element of the Welsh scheme. A consultation on the phased introduction of reuse closed on 10 November 2025, and the responses will inform future decisions.

Irranca-Davies also highlighted the need for legal clarity, confirming that the Welsh government has proposed an exclusion for the DRS under the UK Internal Market Act. Without such an exclusion, the statement says, Wales would be unable to implement its own scheme.

Commenting on the government’s announcement, Travis Way, Managing Director at EcoVend, a brand of international circularity firm Reconomy, described the development as “an important and encouraging step.” He said appointing a DMO would be central to ensuring the scheme operates efficiently and that planning for infrastructure, including reverse vending machines, should now accelerate.

“With this momentum, the focus must now shift to implementation on the ground,” Way said, adding that businesses could use the lead time to prepare for new requirements.

The Welsh government said the completion of the WTO notification process and the launch of the DMO application phase mark “another major milestone” in progressing the scheme, which aims to deliver environmental and economic benefits and support the transition to a zero-waste, net-zero Wales.

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