Marta Kaddour de Elias

The implementation of the Deposit, Return and Refund System (SDDR) will mark a turning point in waste management. But beyond its environmental or regulatory impact, there is a reality that often goes unnoticed: SDDR is, in essence, a distributed digital infrastructure, made up of thousands of connected devices, managed in real time and capable of generating highly valuable data for public administrations, retailers and logistics operators. More than a recycling system, SDDR is a distributed digital infrastructure at national scale. Reverse Vending machines (RVMs) are at the heart of this new ecosystem. Their large scale deployment represents a technological challenge that requires advanced capabilities in IoT, connectivity, analytics, Cybersecurity and remote management. This highlights the role of technology as a key enabler for making SDDR efficient, secure and scalable. A global context accelerating change The adoption of deposit systems is growing worldwide. Countries such as Germany, Norway and Lithuania achieve return rates above 90%, demonstrating the direct impact of financial incentives on consumer behaviour. In Norway, for example, the system has enabled the recovery of more than 97% of PET bottles, significantly reducing packaging waste in landfills and natural environments. Deposit systems not only increase recycling rates, they transform consumer behaviour. The global Reverse Vending machine market reflects this trend and is expected to grow at an annual rate of over 10% until 2030, driven by regulation and the need to improve efficiency in waste management. For example, in Spain SDDR is expected to be implemented in the coming years, with the aim of increasing collection rates for packaging, currently around 41% for plastic bottles, to meet European regulatory targets of 70% by 2025 and higher levels thereafter. Reverse Vending: much more than a recycling machine Although they may appear to be simple return points for packaging, Reverse Vending machines are in fact highly sophisticated systems combining advanced sensors, IoT connectivity and real time processing capabilities. They form the operational core of SDDR and are also one of its most technologically demanding components. Each Reverse Vending machine is an intelligent node within a connected data network. Their operation begins with container identification through computer vision, barcode scanning and sensors that verify weight, shape and material. This process, completed in seconds, not only ensures the validity of the item but also activates internal sorting and compaction mechanisms that optimise storage capacity and reduce logistics costs associated with collection. But the real transformation happens when these machines are connected. Each Reverse Vending machine becomes an intelligent node within a distributed network that requires secure and stable connectivity (4G/5G, fibre or NB IoT) to transmit operational data, fill levels, incidents and usage patterns. Connecting machines is what turns recycling into an intelligent system that can be managed in real time. This information feeds remote monitoring platforms that enable thousands of devices to be managed simultaneously, anticipate failures, plan more efficient collection routes and ensure service availability at all times. In addition, these machines integrate digital screens that can be updated remotely, turning them into a dynamic communication channel. This makes it possible to display instructions, environmental awareness campaigns or even context aware promotional content, enhancing the user experience and creating new interaction opportunities for retailers and operators. All of this requires a robust approach to Cybersecurity, as we are dealing with critical infrastructure deployed in public spaces and permanently connected. Device protection, identity management, encrypted communications and continuous threat monitoring are essential to ensure a reliable and resilient system. Cybersecurity is no longer optional, it is a structural requirement in any connected infrastructure. Overall, Reverse Vending machines are no longer simple recycling devices but advanced digital infrastructure, capable of generating data, delivering services and operating as part of a national waste management ecosystem. However, operating this network of thousands of connected, distributed devices in real world environments introduces significant challenges that go far beyond the devices themselves. Operational and technological challenges of SDDR The implementation of SDDR is not only about changing how we return packaging, it involves building a distributed digital infrastructure that must operate in a coordinated, secure and efficient way across thousands of locations nationwide. This is where the real challenges begin. The challenge is not deploying machines, but operating a massive network of connected devices without friction. System integration Each Reverse Vending machine will need to communicate with management platforms, retailers, logistics operators and public administrations. This is not a single centralised system, but a living ecosystem where multiple stakeholders, technologies and operating models coexist. ■ Ensuring everything works seamlessly requires open architectures, well designed APIs and a shared vision of interoperability. Large scale device management SDDR will involve operating thousands of machines across supermarkets, transport hubs, campuses, events and public spaces. Each one will require constant monitoring to determine whether it is full, has experienced an incident, requires maintenance or needs a software update. ■ Without a robust IoT platform capable of real time monitoring and remote management, the system would become inefficient and costly. Without a robust IoT platform, scaling SDDR would be operationally unfeasible. Service availability Service availability is another critical factor. A machine that is out of service is not just a technical issue, it directly impacts citizen participation and return rates. ■ Keeping machines fully operational at all times requires stable connectivity, rapid recovery mechanisms and predictive maintenance models that anticipate failures before they occur. Cybersecurity And of course, Cybersecurity. These machines will be deployed in public spaces, permanently connected and handling sensitive information. Protecting them against unauthorised access, data manipulation or attacks is essential to maintain trust in the system. ■ This requires encryption, secure identity management, continuous monitoring and a security by design approach. Protecting the network means protecting trust in the entire system. Overall, these challenges show that SDDR is not just an environmental measure or a regulatory requirement, it is a nationwide technological project. A challenge that combines connectivity, data, security and large scale operations. This is precisely where Telefónica Tech provides differential value, helping to build a connected, secure infrastructure ready to evolve alongside the system’s needs. Use cases from retail to public spaces SDDR connects physical spaces with digital intelligence in real time across scenarios such as: Retail and supermarkets: Integration with loyalty programmes, incentive management and improved customer experience. Events and festivals: Connected portable machines to manage usage peaks and monitor operations in real time. Campuses and workplaces: Encouraging sustainable behaviours among employees and generating participation data. Public spaces: Connected municipal infrastructure enabling centralised monitoring and optimised collection routes. Conclusion: SDDR as the digital infrastructure of the future Reverse Vending machines are not just a tool to recycle more, they are intelligent nodes within a distributed digital network, capable of transforming waste management and generating economic, environmental and social value. The future of recycling will be connected, intelligent and data driven. With the arrival of SDDR, has the opportunity to build a modern, connected and efficient infrastructure. At Telefónica Tech, we are ready to support businesses, public administrations and operators in this challenge, providing technology, security and expertise to ensure the system works from day one. Connectivity & IoT A new way of recycling: Smart Containers October 2, 2024 Image: Freepik.