The Netherlands' highest administrative court, the Council of State, has been asked to rule on a government plan to significantly increase deposits on plastic bottles or introduce an additional return bonus. The dispute pits environmental regulators seeking to meet recycling targets against industry representatives concerned about consumer behaviour and implementation challenges.
Proposed Changes to the Deposit System
The Human Environment and Transport Inspectorate (ILT), part of the environment ministry, wants industry organisation Verpact to implement one of two options starting January 1, 2026:
Option 1: Higher deposits
Increase deposits on small plastic bottles from €0.15 to €0.30
Increase deposits on large bottles from €0.25 to €0.40
Option 2: Return bonus
Keep current deposits at 15 cents for small bottles and 25 cents for large bottles
Pay consumers an additional 15-cent "return bonus" when they bring bottles back
The goal is to push return rates toward the legally mandated target of 90%, which the Netherlands is currently failing to meet.
Why Regulators Are Pushing for Change
Return rates remain significantly below target despite improvements. In 2024, only 77% of deposit bottles were returned, up slightly from 74% the previous year, but still well short of the 90% legal requirement. Nearly a quarter of bottles were not handed in, leaving consumers with approximately €139 million in unclaimed deposits sitting in the system.
Inspectors argue that stronger financial incentives are essential to encourage more people to return bottles, which would increase recycling, reduce plastic litter in the environment, and help the Netherlands meet EU and national waste reduction targets. The deposit system was introduced four years ago specifically to boost recycling rates and decrease environmental pollution.
Industry Opposition
Verpact, which represents producers and retailers including major supermarket chains and beverage companies, has asked the Council of State to suspend the inspectorate's order. The organisation argues that higher deposits could discourage consumers from purchasing soft drinks and other bottled beverages, potentially harming sales.
Verpact contends the focus should be on convenience rather than higher prices. They advocate for adding more return machines and collection points throughout the country instead of raising financial stakes. The organisation also criticises the penalty structure as "counterproductive."
If Verpact does not adopt one of the ILT's proposed measures by the start of next year, it faces a substantial penalty of €1.5 million per day, capped at a maximum of €21 million.
Additional Requirements Beyond Deposits
The ILT's plan extends beyond simply raising deposits or bonuses. The inspectorate also wants Verpact to:
Expand return infrastructure: Install at least 5,400 additional return machines by the end of 2026. By September 2025, only just over 2,000 machines had been added, and Verpact says finding suitable locations is becoming increasingly difficult.
Mandatory retailer participation: Require shops selling above a certain volume of drinks to accept bottle returns and install deposit machines, forcing wider participation in the system.
Include more bottle types: Add dairy and fruit juice bottles to the deposit scheme. These products currently fall outside the system but account for roughly 16% of all plastic bottles sold in the Netherlands.
The Financial Stakes
The unclaimed deposit issue represents a significant sum. With nearly 25% of bottles not being returned, approximately €139 million in consumer deposits remains uncollected. This money stays with retailers and producers when bottles aren't brought back, creating a financial disincentive for the industry to aggressively promote higher return rates.
Higher deposits or return bonuses would increase the financial motivation for consumers to return bottles while also raising the amount of unclaimed money if return rates don't improve: potentially making industry compliance even more costly.
What Happens Next
The Council of State hearing is scheduled for Thursday, November 21, with a ruling expected in early December 2025. Until then, the dispute creates uncertainty for producers, retailers, and consumers about what the deposit system will look like in 2026.
Whatever the court decides, pressure will continue to mount on all stakeholders to raise return rates from the current 77% to the required 90% and address the hundreds of millions of euros in unclaimed deposits remaining in the system
