site.btaModern Trade Association: Bulgaria Should Begin Building Deposit System Today to Avoid Fatal Delay

The latest postponement of the deposit system for beverage packaging waste to 2029, which is the deadline under the EU regulation, will be paid for by everyone in Bulgaria, Modern Trade Association Executive Director Nikolay Valkanov told BTA.

"The truth is that we are already behind schedule," he noted, arguing that setting up such a system requires extremely serious preparation. According to him, even the experience of other countries shows that a year and a half is not always enough to organize an effective deposit system.

The price that society pays for the lack of a system for taking back beverage packaging waste is, on the one hand, environmental pollution and, on the other hand, a pure financial loss, Valkanov explained. Valuable raw materials worth millions of euro are being lost, and consumers are paying in three other ways: through product taxes when purchasing beverages, through household waste taxes, and, last but not least, through the fines that Bulgaria pays for not meeting its EU targets for recycled plastic. 

According to Eurostat data, Bulgaria is among the EU Member States with the lowest share of material use within the circular economy. Bulgaria reported less than 5% use of recycled materials in 2023, compared to an EU average of 11.8%.

The introduction of a deposit system for bottles and cans is a long and responsible process, which first requires very good planning and secondly, serious investment, Valkanov told BTA. Another difficult task for businesses will be the development of special software and its integration with retail outlets, as well as with the entire logistics system for the return, counting, and processing of waste.

That is why the latest postponement of the deposit system to 2029 may in itself lead to further delays. According to Valkanonv, entering into another election process and forming new governments will lead to additional delays. "One of the reasons we have reached this point was actually the lack of stable central government for a very long period of time, as discussions on the creation of a deposit system have not been going on since yesterday, but for over two years, I would say three years, perhaps," explained Valkanov. 

Since April 2025, the dialogue between the parties involved in the introduction of the system has stalled, he added. "The least that could have been done from April until now is to have a change in the vision, to have it developed in sufficient detail and presented so that it could be discussed with the interested parties," he commented.

Another controversial issue is who should manage the future bottle and can return system - the State or businesses. According to Valkanov, retailers, who are expected and required to take back bottles and cans, have the infrastructure and are interested in managing such a model because it would ensure its effectiveness. The Modern Trade Association sees the role of the State in exercising its supervisory and control functions and in reporting on the targets to be met.

Valkanov also called for timely decisions at the State level, which play a leading role in the creation of the deposit system, so that delays do not prove fatal.

The EU Packaging and Packaging Waste Regulation is new legislation that aims to reduce pollution and promote recycling through strict rules within the Union. The legislative act replaces an old directive to meet new environmental requirements. It entered into force in February 2025 and its implementation will begin in August 2026.