Welsh Cabinet Minister for Environment Llyr Gruffydd told a Senedd debate on Wednesday (15 July 2026) that he “hopes to bring a positive conclusion to [the DMO appointment] in short order.”
However, a government spokesperson explained that no appointment has yet been made: “We are working at pace on a formal process to appoint a Deposit Management Organisation which will be concluded soon.
“It would be inappropriate to prejudge the outcome of this process.”
While Exchange for Change was not explicitly named, they are currently thought to be the only bidder in the tender process.
In April, it was announced that the Welsh Government had reopened applications for a DMO to oversee its planned Deposit Return Scheme (DRS).
Industry sources indicated that Exchange for Change – the appointed DMO for England, Scotland and Northern Ireland – was the sole applicant during the first round but was not selected.
It was confirmed later that month that Exchange for Change was planning to appeal the decision and reapply for the position.
A second application window was opened, with applications expected to be submitted by 2 June 2026.
After the initial rejection, Exchange for Change expressed disappointment at the outcome but emphasised its continued commitment to delivering a UK-wide scheme.
The statement said: “We are disappointed that our application to be the scheme administrator for the Deposit Return Scheme in Wales has not been approved.
“Industry has always been clear that the right outcome is a fully interoperable deposit return scheme across all four nations from October 2027, one that reflects the realities of how the UK retail market operates.”
The group reiterated industry calls for alignment across the UK’s four nations, stating that a single administrator would offer the simplest and most efficient route to delivery.
It added: “While we were clear in our application that significant challenges existed with the regulations in Wales, we believe that our application suggested practical and effective ways to overcome these.”
Welsh Deposit Return Scheme
The Welsh DRS is set to launch alongside the rest of the UK in October 2027.
During the Senedd debate, Gruffydd also reaffirmed that the Welsh scheme will continue to include glass containers and the phased introduction of reuse, explaining that these elements had already been established in law and reopening them now would create “further uncertainty.”
However, Gruffydd said that the Welsh Government remains committed to introducing a deposit return scheme that remains interoperable with the rest of the UK.
He added: “The full requirements in relation to glass need to be implemented pragmatically and when feasible, particularly for SMEs.”
From launch, the Welsh DRS will cover single-use drinks containers made from:
- PET plastic
- Aluminium
- Steel
- Glass
Containers from 150ml to 3 litres will be included.
However, while glass will be in scope from day one, ministers have confirmed a four-year transition period.
During this time, glass containers will be exempt from labelling requirements and will carry a zero-pence deposit.
The Welsh Government said this is intended to give producers and retailers time to adapt and to align with the phased introduction of reuse targets.
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