Metals & Alloys

Germany marks 20 years of deposit return scheme behind 99% aluminium can recycling

A nationwide Pfand system launched in May 2006 now handles around 20 billion single-use containers a year and underpins Germany's 99 per cent aluminium can recycling rate.

Marta KaczmarekOctober 15, 20265 min read13 views
Unbranded aluminium beverage cans on a conveyor bending into a closed-loop recycling arrow toward a modern sorting facility, illustrating the deposit return route from consumer drop-off to industrial recovery.

Germany's 99 per cent can recycling rate

Germany recycles 99 per cent of its used aluminium beverage cans, the highest rate in its packaging recovery picture. An International Aluminium Institute (IAI) study places aluminium cans ahead of PET bottles at 95 per cent and glass bottles at 81 per cent, within a national packaging recycling performance reported against a European total of 76.3 per cent. Behind that leading position is the country's Deposit Return Scheme (DRS), widely known as Pfand, which gives empty beverage containers a financial value and a convenient route back into collection.

From a mandate to a nationwide system

The current single-use deposit system was built in stages. The mandatory deposit requirement was decided in 2003. In 2005, retailers and the drinks industry jointly established Deutsche Pfandsystem GmbH (DPG) to develop a standardised framework for implementing it. The nationwide DPG system for single-use beverage packaging came into operation in May 2006, supported by an extended take-back obligation requiring the new arrangements to be in place from May 1 that year. The aim was an efficient system with common standards that still allowed retailers, drinks companies and other market participants to manage their respective roles.

Under the scheme, consumers pay a EUR 0.25 (USD 0.28) deposit on eligible single-use beverage containers and recover it when they return the empty packaging at an accepted collection point. Retail take-back, reverse-vending machines and standardised container identification have made returns part of routine shopping. The system now handles around 20 billion containers a year, making it the largest one-way deposit-return system in the European Union, with more than 1,000 companies affiliated as participants and partners.

A dedicated stream of used beverage cans

For the aluminium industry, the significance of DRS is not only the number of cans returned. It is the creation of a reliable, dedicated stream of used beverage cans that enters organised collection and recycling channels instead of being lost in mixed waste. The refund gives consumers a direct financial reason to bring containers back, while container recognition and standardised identification help separate eligible packaging into distinct collection streams. The result is a substantial, recurring flow of packaging for recovery, with the refundable deposit also helping to keep eligible containers out of ordinary disposal routes.

Recycling capacity behind the scheme

Germany's high collection performance sits alongside a sizeable recycled aluminium industry. National recycled aluminium capacity is estimated at around 700,000–720,000 tonnes a year. Novelis operates its Nachterstedt facility, described as the world's largest aluminium recycling facility, with capacity to process up to 400,000 tonnes of aluminium scrap annually. Hydro-owned WMR Recycling GmbH in Dormagen supplies technology-driven sorting equipment and can sort 36,000 tonnes of aluminium scrap a year using X-ray transmission and other sorting technologies. Trimet Aluminium SE has expanded its Gelsenkirchen recycling facility, raising production capacity by 20 per cent to 80,000 tonnes of recycled aluminium. Collection through DRS brings containers into organised channels; sorting and recycling plants then prepare the recovered metal for further use.

Twenty years of Pfand

Germany marked 20 years of its nationwide one-way deposit scheme at anniversary celebrations in Berlin on June 17, 2026. The European Commission and Germany's Federal Environment Ministry highlighted the scheme's contribution to the circular economy. EU Commissioner for the Environment Jessika Roswall said all packaging, whether glass bottles, plastic bottles or aluminium cans, should be sent for recycling to increase efficiency, reduce waste and protect the environment. Antje von Broock, head of the department for circular economy, air pollution control and chemical safety at the Federal Environment Ministry, said the deposit-refund system makes a very important contribution to the circular economy today. DPG managing director Susanne Kürschner noted that the organisation and its partners had maintained stability while making the system more efficient, resilient, future-proof and scalable.

The deposit scheme operates alongside broader packaging collection arrangements, including household sorting through the Dual System, commonly associated with the Grüner Punkt. Eligible single-use beverage containers follow the dedicated deposit route, while other packaging remains subject to the relevant collection and compliance arrangements. As Europe looks to strengthen packaging circularity, Germany's two-decade record offers a practical example of how a collection system can connect consumer behaviour with aluminium can recycling.