Portugal will impose a fee of up to 15 cents on beer cans and soft drinks and water bottles, according to media reports.
Consumers will be entitled to a full refund upon returning the used cans and bottles at designated collection points.
The measure is expected to come into force in 2023 and will see the addition of the fee to the price of some bottles and cans.
The fee will only apply to bottles of water and juices, soft drink cans, ciders or beer, the report said citing the Jornal de Notícias.
The bottles and cans collected via this initiative will be sent to the traditional 'ecopoints' for recycling, the report noted.
Milk and wine bottles are currently not a part of this plan as they are likely to leave bad smell in the machines.
Fees on bottles with capacities of less than a litre will range between 5 and 10 cents. For bottles of up to three-litre capacity, the amount can reach up to 15 cents.
The Portuguese Environment Agency has requested an evaluation of this measure and believes that it can only be implemented by the end of the first quarter of 2023, the report said.
The cans and bottles will be deposited in designated places such as supermarkets or liquor shops.
Global companies, retailers are implementing several measures to encourage recycling of plastic bottles and cans as part of their efforts to reduce their carbon footprint.