The Welsh Government is to create a deposit return scheme for Wales, after pulling out of a UK-wide approach that did not include glass bottles, it has announced.

England, Wales, Scotland and Northern Ireland had been working towards a long-planned drinks container scheme, due to come into force in October 2027.

Under the plan, which the UK government’s Department for Environment, Food & Rural Affairs (Defra) has been developing since 2017, consumers would get a small deposit back when they return single-use bottles and cans.

The scheme had faced fierce criticism from some in the drinks industry, with differences between devolved administrations over whether to include glass bottles also complicating the rollout.

However, a joint process between the UK government and the devolved governments to appoint the deposit management organization for the respective schemes was due to take place later this month.

But on Monday afternoon Huw Irranca-Davies, Wales’ deputy first minister, issued a statement confirming that Wales was “unable to move forward with the joint process”.

He said problems stemmed from the UK’s Single Market Act 2020, which was “inherited by the UK government” from the previous Conservative administration.

His written statement added: “Wales was already ranked second in the world for recycling, it puts us in a unique position to implement a scheme in an already high recycling nation.

“This means that developing a DRS that will deliver benefits to Wales requires an approach that looks beyond recycling; one that will support Wales to build on our progress to date and take the next step by supporting the transition to reuse.

“Recognizing the effort that everyone in Wales has put into our progress in recycling, it also means that it is important that the introduction of a DRS will build on and not detract from the progress that everyone has worked so hard to deliver .”

Under the scheme, shoppers pay a deposit when they buy a disposable container.

This deposit is then paid back when the product is returned, for example back to a store counter or to a return machine.

Earlier this month, the UK government confirmed it would not include glass in the scheme.

The Welsh Government had always maintained that glass would be part of its deposit return scheme.

Mr Irranca-Davies said it had “not been possible to address the problems with the functioning of the devolution” from the Single Market Act 2020 in the time available.

“This unfortunately means that we cannot move forward with the joint process or notify the WTO (World Trade Organization) in relation to the system at this time,” he said.

It is not clear exactly when the Welsh system would come into force, although ministers hope it would be introduced in the next term in the Senedd, which starts in May 2026.

Mr Irranca-Davies said the plans for Wales would focus on supporting the country’s transition to a circular economy, moving to reuse rather than recycle containers.

He added: “Our active engagement with industry has shown that there is currently a range of views on how best to achieve the transition to reuse.

“We will therefore continue our active commitment to developing a system that supports the transition to reuse for all beverage containers including those made of glass.

“In doing so, we will also continue to draw on international best practice.

“In parallel with the development of the Welsh DRS, we will also continue our work to improve our recycling, having once again seen an increase in our recent recycling rates this year.”

Every year, UK consumers go through an estimated 14 billion plastic drinks bottles and nine billion drinks cans.

Current recycling rates in the UK for containers covered by the take-back scheme are around 70%, leaving around four billion plastic bottles, 2.7 billion cans and 1.5 billion glass bottles unrecycled each year.

Deposit return schemes are used in other countries around the world, including Germany, Finland and Norway which have over 90% recovery rates.

There are reportedly 56 deposit return schemes operating internationally, 49 of which are said to include glass.

In response to the Welsh Government’s announcement, Welsh Conservative ministers called for a reconsideration.

Janet Finch-Saunders, shadow climate change minister, said: “With thousands crossing the Welsh-English border every day, 16 million people living within 50 miles of the border in England and Wales, and trade between both countries being fluid, it is important that we have the same return system for deposits.

“The Welsh Conservatives have been calling for the implementation of a DRS since 2016, taking inspiration from systems around the world.

“Welsh Labor must reconsider their decision and respect the agreement they made with the four British nations.”

Gavin Partington, director general of the British Soft Drinks Association, said: “We regret the Welsh Government’s decision which undermines efforts to deliver a tailored deposit return system across the UK and help the transition towards a circular economy.”

He said the group remained committed to a pledge and polyethylene terephthalate (PET) return scheme and would continue to work with governments to deliver this by October 2027.