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I call the meeting to order.
Welcome to meeting number 99 of the House of Commons Standing Committee on Science and Research. Today's meeting is taking place in a hybrid format. All witnesses have completed the required connection tests in advance of the meeting.
I'd like to remind all members of the following points.
Please wait until I recognize you before speaking. All comments should be addressed through the chair.
Members, please raise your hand if you wish to speak, whether participating in person or via Zoom. The clerk and I will manage the speaking order as best we can. For those participating by video conference, click on the microphone icon to activate your mic. Please mute yourself when you are not speaking. For interpretation for those on Zoom, you have the choice at the bottom of your screen of floor, English or French.
Thank you all for your co-operation.
Pursuant to Standing Order 108(3)(i) and the motion adopted by the committee on Thursday, May 23, 2024, the committee resumes its study of innovation science and research in recycling plastics.
It's now my pleasure to welcome, from the Canadian Beverage Association, Krista Scaldwell, president, and from the Circular Innovation Council by video conference, Jo-Anne St. Godard, executive director.
Welcome. You will have up to five minutes for your opening remarks, after which we will proceed with rounds of questions.
We'll start with Ms. Scaldwell.
I invite you to make an opening statement of up to five minutes.
I would like to thank the members of the committee for providing this opportunity to speak about the leadership role the beverage sector is playing in Canada to increase recycling and advance the circular economy.
The Canadian Beverage Association is the national voice for more than 20 businesses, representing 60 brands of non-alcoholic beverages. Our members directly employ more than 20,000 Canadians, pay more than $977 million in federal tax revenue and contribute more than $5 billion to Canada's GDP every year.
In addition to our sector's support for jobs and economic growth across the country, CBA members are leaders in sustainable packaging, design, recycling programs and the use of recycled content in packaging.
Today, we have three key points to address: one, align recycled content standards with the available supply of recycled plastic material; two, increase the supply of recycled material by supporting the development of a national framework for deposit-return and recycling programs for non-alcoholic beverage containers; and three, prevent supply chain disruptions and unintended consequences in the recycling system by excluding aluminum non-clad sheet from the aluminum surtax until additional supply becomes available.
Most CBA members have committed to making their packaging recyclable, reusable or compostable by 2025. CBA members are supplying their beverage products primarily in aluminum cans and plastic bottles, which are recyclable materials collected at a high rate, and they are among the most valuable commodities managed in packaging recycling systems.
CBA members are also taking actions to further improve the packaging they supply by supporting the golden design rules, which require the elimination of plastics and additives that disrupt recycling systems or degrade the value of other recyclables.
CBA members have made recycled content commitments and support the use of recycled content standards, but those standards must align with the available supply of recycled material. To create that supply, Canada requires a national framework of well-designed deposit-return and beverage container recycling systems with measurable, achievable recycling targets to collect, sort and market enough recycled plastic for use as recycled content.
All Canadian provinces except Ontario and Manitoba have a deposit-return system for non-alcoholic beverage containers. Provinces with deposit-return systems, like British Columbia and Alberta, have recovery rates ranging from 77% to 85%, along with high levels of consumer support. Ontario, which relies only on blue box collection, maintains the country's lowest recovery rate for non-alcoholic beverage containers, which is about 50%. Without a deposit-return system in Canada's largest province, beverage producers will have great difficulty obtaining access to the necessary supply of recycled plastic to meet the federal government's proposed recycled content target of 60% by 2030.
We ask the committee and the members of the government to ensure that any federal recycled content standards that increase the demand of recycled plastic align with the available supply of recycled plastic. We further ask the committee and members of the government to support the development of a national framework for deposit-return and recycling programs for non-alcoholic beverage containers to produce the necessary supply of recycled plastic.
Aluminum is one of the most recycled and recyclable materials used in packaging today. Canada's beverage container recycling programs recover more than 80% of aluminum cans. We understand the government's decision to align with the United States on a surtax applied to steel and aluminum products from China, but we ask that you recognize its unintended consequences.
As mentioned, the two primary types of containers for CBA members' beverage products are plastic bottles and aluminum cans. Limiting the import of aluminum used for beverage cans, with little or no time to prepare, will create major supply chain disruptions and could increase plastic usage. To meet demand, beverage companies may have to increase the use of plastic bottles until more aluminum can be sourced in North America. To prevent these supply chain disruptions and unintended consequences, we call on the government to exclude aluminum non-clad sheet from the list of aluminum and steel products from China subject to a 25% surtax until additional supply becomes available.
In summary, our association's requests of the committee are for the support of the following: aligning recycled content standards with the available supply of recycled plastic material; increasing the supply of recycled material by supporting the development of a national framework for deposit-return and recycling programs for non-alcoholic beverage containers; and preventing supply chain disruptions and unintended consequences in the recycling system by excluding aluminum non-clad sheet from the aluminum surtax until additional supply becomes available.
Thank you very much for the opportunity to share our members' perspective today. I'd be happy to answer your questions.
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Good afternoon. Thank you for the opportunity to join today's meeting.
My name is Jo-Anne St. Godard. I'm the executive director of the Circular Innovation Council. We are a leading, independent and not-for-profit organization focusing on accelerating Canada toward a circular economy and away from our current linear take-make-waste-based economy. For those unfamiliar with the concept of the circular economy, it is a model that decouples economic activity from the production and consumption of finite resources.
To offer some context to my comments today, before becoming the CIC, for over 40 years we were the Recycling Council of Ontario. In that capacity, we helped shape many of Canada's waste reduction and recycling policies and programs aimed at shifting markets toward redefining waste to valuable resources and reorganizing systems that allowed discarded materials, including plastics, to become valued feedstocks in the manufacturing of new products. Part of this role required our ability to unite policy-makers, industry interests and other stakeholders. One of our greatest achievements was the launch of Canada's blue box packaging and plastics recycling program created jointly by the private and public sectors. It is currently collecting more than 65% of the plastic packaging from our homes and is now replicated around the world.
With this experience and expertise in mind, and to respond to the committee's pursuit to conduct research to improve plastics recycling in Canada, I offer the following.
Recycling doesn't need more research. Governments and industries alike clearly understand the causation of our current poor recycling rates of plastic discards. It is fundamentally attributed to the economic disparity between the low price and availability of virgin plastics and the negative value and low availability of clean and reliable recycled plastics. For over 50 years, we have been designing and redesigning recycling programs to improve their recycling rates, spending millions on collection, infrastructure, sorting and processing, and matching operational investments with more millions toward consumer education.
If we are honest, we should acknowledge that for decades existing plastic recycling programs have effectively been financed, financially propped up, by the subsidy offered by Canadian municipalities and their respective taxpayers, making it effectively free for industry. Provincial governments are now course correcting, introducing new producer responsibility regulations to transfer these costs to manufacturers, their supply chains and their sellers. The primary objective of this transfer is to require these actors who design and sell plastics into the market to invest in a system that effectively collects and recycles them at end of life. Another objective is that these new costs will incent better design packaging and products for this system.
These relatively new EPR policy interventions are starting to take effect, coalescing in the financial contributions of producers who have taken ownership of the programs becoming intimately familiar with their costs, their limitations and their corresponding opportunity to improve them. It is estimated that Ontario's blue box program alone will cost producers over a billion dollars next year, with a significant portion of that investment dedicated to improving plastic packaging recycling specifically. Similar EPR legislation targeting other plastic products, such as computer equipment, is also expanding. New policies are being contemplated for other plastic products, such as textiles and carpets.
The effects of these new producer funding investments, tied in part to regulated plastic recycling targets, will offer an important market investment toward new plastic recycling processes, including mechanical and chemical, efficient collection and transport infrastructure operations, improved product and packaging design and, of course, expanded public education. As such, I would caution the committee to not proceed with research on plastic recycling at this time but to allow time for these new producer investments to take full effect.
There is, however, an important opportunity for this committee to reinvest and invest in research to better understand the product designs that optimize the amount of post-consumed recycled plastics. As mentioned, the cause of our consistently low recycling rates for plastics is directly attributed to low commodity value caused by a lack of market demand. Designing plastic products and packaging that maximizes the amount of recycled materials, backstopped by policies that require it, will spark much-needed market interest. This market demand will meet the new industry investments being made in recycling operations, which is the perfect recipe for sustained, high-performance and markets-based plastics recycling programs.
Thank you.
My first question is for Ms. Scaldwell. It's in regard to some comments made in a previous meeting by a professor from Queen's.
I asked her about the case of, say, a Coca-Cola or beverage company. They have plastic and they have the aluminum cans, and what's the right way to go? I don't want to put words in her mouth, but she basically said that glass is actually the best way to go. It seems to me that it would be pretty energy intensive.
Is there a thing you can say on the hierarchy of good and evil that aluminum is the best, plastic is the middle and that with the energy it takes for glass, it's the worst? Do you guys look at any of that? What should the beverage manufacturers be doing?
In the case of, say, Red Bull and Monster and those companies, when you go to the convenience store, it looks to me like they're doing aluminum cans, but when you look at companies like Coca-Cola and Pepsi and those companies, they have a variety. They have some plastic, and they have some aluminum in different shapes and sizes.
Why do they do that? Why do they have some in plastic and some in aluminum? Why don't they just do them all in aluminum?
Hello, everyone, and thanks to the witnesses for coming in today.
My questions will be for Ms. St. Godard.
I'm particularly interested in the reuse program that aims to eliminate single-use plastic waste on a national basis. I'm wondering if you can describe and unpack more of what that program is.
Do you think you could point out to Canadians when we could expect to see this program active in stores?
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Thanks for the question.
This is a program we've been working on as an organization in partnership with some leading grocery retailers for the better part of about two years now. I'm pleased to say that we are anticipating a launch in Ottawa. The pilot project will be focused in the city of Ottawa initially, tested and perfected, and then expanded across the country.
What makes this reuse experiment or pilot unique is that it has a collaborative approach. I spoke in my comments about our role as an organization in bringing otherwise competing entities together around a common good and a common interest, and this is exactly what we've done with the reuse project.
We worked with three grocers—Walmart Canada, Metro, and Sobeys and Farm Boy together under the Empire group—to identify a common set of reuse containers they can utilize in-store. They have autonomy in terms of decisions about where in-store they want to use those. In a place-based way, working with the City of Ottawa.... I might say that we were also funded by Environment and Climate Change Canada to run this pilot. With the support of all of these entities, we've worked and identified a catchment area in Ottawa where we'll be deploying these containers at six grocery locations. In fact, we have gone door to door at neighbouring restaurants to see if they want to share in the pilot. At this date, as of today, 11 of them have confirmed.
What we're trying to do is build a critical mass and provide containers as a service as opposed to containers as an asset. Each of the participating entities, be they grocers or restaurants, will share in the container use, the washing and sanitization services, the deployment of the containers and the logistics of moving them about in the system. As I mentioned, the launch date is October 17. I'm very much looking forward to seeing all of you with one of our reuse containers in your hands for lunch.
We'll be running the pilot for 12 months, collecting all of the data—both in terms of costs and environmental and social benefits as well as job creation—testing the existing ecosystem of service providers, and then growing the businesses in Ottawa and diversifying their services by onboarding them into this pilot.
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As the kids say, we'll talk.
Just a few moments ago, you talked about reaching out to other businesses to get involved. We're talking about change, which can be very complex. It can be hard to get people on side with a new approach or process.
I'm curious about this: When you reached out to businesses, what was your pitch? I find, whether it's government policy on any level or just general change management, people need to understand the why. What was your “why” when you went to them?
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It was slightly different, depending on who we were talking to.
The pitch was really informed by a year of research to understand where there were barriers. What were these barriers? Were they costs? Were they management? Were they understanding? Were they education? Were they culture? Were they language? There were a variety of different barriers that we identified. We didn't look just to the Canadian context. We looked around the world. We plucked, if you will, the “best in show” attributes of working reuse programs and we combined them.
The pitch, to answer your question directly, was really distilled down to a couple of things.
First, there was a misunderstanding that reusing containers was harder or required more effort, more cost or more management than having single-use. We were able to dispel that myth by bringing real-time, time-bound studies and demonstrating, by working with each restaurant and grocery store independently, that there really wasn't much change. A container is a container. That's one of the myths we've had to dispel.
The second was absolutely cost. Again, unique to our pilot, nowhere is there any geography like Canada, where we're so disaggregated. It's a very large geography. It's very expensive for a grocery store, given it has locations across the country, to create a program by itself. It would have to move these containers between its locations, and it gets quite complicated and quite expensive.
The availability for it to pay a subscription or membership fee to get access to this program made it much more cost-effective. It eliminated its need to purchase single-use containers. Most importantly, it also got to subtract the reuse containers it was able to deploy from its extended producer responsibility fees, because reuse does not attract an EPR cost. When it combined those elements of cost savings, it was a bit of a no-brainer.
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Of course, if they are manufacturing in a Canadian context, they are probably employing people. I imagine there is a job benefit and a social benefit to doing that.
The reality is that we don't manufacture many plastic anything in Canada. The increasing single-use plastics in the Canadian market do very little for the Canadian economy. Of the 400 billion tonnes of plastics produced globally, we're at less than 6% in terms of what we manufacture here. We have much more opportunity to grow our green economy by improving our ability to innovate around collection and recycling and by designing, with our innovation, more recycled content of plastics in products and packaging.
I think we learned very clearly in the pandemic, when we saw single-use plastic use triple, that having long supply chains can make us quite vulnerable. There is an opportunity for us to look domestically and shorten our supply chains in terms of production. Also, rather than going through all the expense and effort of our citizens collecting and then shipping this raw material to other parts around the world, only to buy products that actually have these recyclables as part of the makeup, we'd be better off trying to find ways of creating and shortening the supply chain and creating an economy of plastics right here.
I would like you to share your views based on science and research. Some companies are currently taking legal action. Since this is in the public domain, I can name them: Dow Chemical, Imperial Oil and Nova Chemicals, whose representatives came to testify before the committee to present a completely different point of view.
When parliamentarians wonder about the toxicity of plastic, I wonder if they have ever read a scientific study on the subject. Maybe they just don't believe in science. I would like to hear your opinion on that, since you are a scientific expert for the Circular Innovation Council, an environmental group.
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I don't think there's any dispute related to plastic discards and plastics pollution leaking into our environment. I know there's a growing body of research that is trying to quantify its effects in terms of not only what it's doing to our environment, but also what it's doing to wildlife and to human health. That body of research is growing. There's really been no dispute, even in the early research, that there are grave negative impacts as it relates to microplastics and other chemical compounds that are part of fossil fuel-based plastics in the system. I think that's undisputable.
Unfortunately, the rate of production of plastics continues to grow, and our rate of recycling is declining. We're headed in the wrong direction. There's no question about that. It's pretty self-evident why some of the chemical companies or other manufacturers might have more interest in trying to support recycling efforts than they would reduction efforts in terms of self-efficacy and self-continuation. We have a long way to go on the recycling side, but we will not recycle our way out of this problem. I think you've heard this at committee several times. No research or science will tell us that. We know this already.
This is going to be a combination of eliminating, reducing, swapping out plastic materials to other alternatives and, of course, expanding recycling.
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I think I would agree with my other friendly witness that deposit return systems have proven to be successful. The beer industry is one great example. For almost 100 years, they've been able to recover all of their containers, irrespective of material type, to somewhere between 85% and 95%. It's just really stood the test of time. They have an integrated system where they use reverse logistics to drop off new product and to take back containers.
I might mention that a portion of what they've been able to do so successfully, which has an economic opportunity as well, is to refill. Deposit return places a financial bounty. It creates a value where there might not be any. I spoke of the low value of plastic discards, and that's why we have disparity in the system and why we can't incent recycling. It places a financial bounty or a reward, if you will, on the consumer to do their part, in this case, using the beer example, to take it back when they pick up a new case of beer.
We know that financial incentives are very impactful. We also know that there is some evidence that municipalities have tried other disincentives with mechanisms like clear bags at the end of the curb. It might show, if there's some inspection, if you will, which is very basic, there are too many recyclables in the garbage bag and they give you a little sticker sometimes. It's not a pleasant sticker; it says that you need to try harder. There are disincentives that are placed there as well.
I think, between the two, I would certainly say that we need to really exploit and to take seriously the mechanisms in the market that have worked. There is no question that deposit return is our best result in that regard. I do think that extended producer responsibility is also another incentive, if you will. Making producers pay and internalizing those costs builds incentive and motivation for them to be able to go back and redesign improved packaging and products.
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Thank you for sharing that.
I also wanted to ask about your organization's work and perhaps about work that you're aware of when it comes to making recycling realistic in northern and indigenous communities. I am joining you from northern Canada, of course, from my constituency.
Many people in indigenous and northern communities want to recycle and don't have a realistic option to do so. Many, particularly in remote communities, have very small landfills. Due to chronic federal underfunding, dealing with those landfills is anywhere from a headache to full on hazardous.
I'm wondering if you could share how important it is to get a handle on ensuring recycling is available to all Canadians, frankly, including in northern and indigenous communities.
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I do know a little bit about that.
I also wrote the waste reduction strategy for the Nishnawbe Aski Nation. I was privileged to work with them in their communities to look at what is possible in the north, which is sort of exciting. Sometimes it's a negative, and it comes with negative serious conversations.
What's interesting and unique about the north is that these are small circular economies of their own. They can take self-care measures and actually take some control in terms of gatekeeping what comes into their community, how it's used in their community and what happens to all of these products at the end of their life. Moreover, they can have a different kind of relationship with the companies and retailers that bring products and packaging into their communities that ultimately could end up as waste materials.
There's no question that they have unique circumstances, but I think there is an opportunity to really leverage those unique circumstances. In NAN, by way of example, we actually looked at reuse as a community. We looked at what's consumed and where there are opportunities to supplant single-use anything with some reuse systems, given that they have this closed ecosystem. We really think that in a circular economy there's tremendous opportunity, not just to make them equal but to actually give them a leadership position and learn from them.
Also, I would say that culturally we have a lot to learn in terms of utilizing everything to its highest value and really doing a gut check in terms of the way we consume individually and what that means collectively to those communities.
There's a lot to learn from first nations communities as well. I think they're going to be a very important part of our transition towards a circular economy in Canada.
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I think we have a long way to go before I would term us a “superpower”, but I do think that we have an opportunity to do much better than we're currently doing.
There is an opportunity when you look at the use of deposit-return systems, for example, province by province, for getting the products back. The commitment that my fellow witness spoke about was the extended producer responsibility. The producers are very committed to this. They want the materials back. I think there's a huge opportunity.
Things that prevent us from getting there quicker are things like how we do it province by province. It makes data collection very expensive. If you have a different deposit at a border, then you get border fraud. I think that a national framework could help us leap forward.
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It's a tough question because it also depends on the retail market in different countries in terms of things like return to retail.
Canada, for example.... I'm told all the time that we're ahead of the U.S. That said, how do we get to be a leader? If we could take an opportunity to collaborate, we have recycling affiliates in each of the provinces. We could take a look at the data, look at what's working in the provinces and help the lagging provinces come along, as well as invest in public education. Right now we confuse Canadians because how you recycle something in Alberta is different from how you recycle something, potentially, in Quebec or in Ontario.
Our opportunity lies in setting up a framework that would help producers and also help the recycling affiliates. We collect data as producers by province. It's super inefficient, very expensive and duplicative. Where's that opportunity? Collect the data nationally. Look at what's working in what region, at what's not working in another region and bring that forward. It's only going to make us better.
Another thing would be a national education campaign, but we can only do that if we have national framework where it's the same across the country.
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Yes, I think that in some cases we actually are already a superpower. It depends on the material you're speaking about. We lag in plastics. In other materials, we are actually doing quite well: paper, fibre, metals and glass. We actually have some great Canadian case studies and stories to tell, but there is a tremendous opportunity.
If we're going to really focus on plastics, which is the conversation today, to me it's nonsensical that we are spending now billions of dollars creating, using producer money and relying on average Canadians to collect, transport and clean, only to ship this material elsewhere for production into new products. Sometimes it's shipped loose, and other times it comes in the form of pellets. If we're talking about 9% recycling, we're only talking about collection, not actually recycling. There's a difference, so how much we are actually recycling in this province is probably even lower. There's a tremendous opportunity for us to keep the materials domestic and to redirect them to more domestic productions of other products right here as well.
Yes, I do think we could be a superpower.
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There was a tremendous uptick in single-use plastic utilization during that period of time for a number of different reasons. In fact, supply chains—in terms of both recycling and production—were shut down, if not slowed. There was stockpiling of materials. It got to a point where there wasn't sufficient room and it wasn't cost-effective to stockpile them anymore, so they were landfilled. There may be some skewing of the numbers as a result of the pandemic, for sure.
I think single-use plastics are replacing some other types of packaging specific to the packaging portion of the plastics faction. I know there is more data that we're collecting from outside the home, that is, away-from-home consumption, on the go or in our parks. Litter is part of that as well.
It's also what's being consumed and eventually discarded in the commercial-institutional sector. Canada doesn't have very good data there. We have extraordinarily accurate data on residential because of producer responsibility and legislation. We have very poor data in the IC and I sector on waste in general and on plastics specifically. We are very much in favour of the registry the federal government is going to create, because it will tighten that data up and make it available to all Canadians, including in industry, so we get a better handle on what our performance is.
The IC and I data is being collected at some provincial levels. I imagine this also had an effect on the data you're speaking about.
Of course, unless you have data, you don't know what you want to achieve. Obviously, you won't want to measure progress towards improvement.
Ms. St. Godard is clearly talking about the federal plastics registry.
Ms. Scaldwell, could you comment on your industry's feelings about the registry that was announced a few weeks ago, in terms of the potential burden of reporting on a very regular basis? How does your association view that?
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Thank you. It's a great question.
We support the concept of a national reporting mechanism like the plastics registry. However, as it's currently structured, it imposes a strong regulatory burden, and it's not harmonized with the data collected by the provincial and territorial organizations. It's asking for data not currently available or data under the purview of producers that may be...such as end-of-life fate. One of the issues we face is the cost of trying to figure out that data.
At the end of the day, anything that increases our cost of manufacturing and doing business is an increase in price for consumers. If we could see that data come to a place where it's harmonized with data collection by the provincial and territorial organizations that currently collect the data....
:
Thank you, Madam Chair.
Ms. St. Godard, you know that Quebec is different for a number of reasons. The proof is that nearly 35 years ago, the Government of Quebec created Recyc‑Québec, an organization that prioritized the circular economy. We are aiming to move away from the current linear and extraction‑based economic model.
One could say that his model is held in great esteem by several parties. I think that's true for the party in power, but also for the Conservative Party. I have to say that it seems to suit them well. For our part, we value the principle of extended producer responsibility, whereby the responsibility for managing products at the end of life lies with the companies that put them on the market.
I would like you to tell us what you think about the rest of Canada, since we didn't wait for the federal government to help us with recycling.
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We work very closely with Recyc-Québec. We're very aligned with and support all of the provincial-based circular economy activities that it's showing and leading there. It's an impressive record. I can't speak for all Canadians, but any public opinion polls that we take, Canadians feel we need to do more. They have absolutely stated that they know industry has a role to play, including those that are brand holders and sellers, but other producers and manufacturers as well.
We have many good examples that we could leverage from the Quebec situation. Leadership is being shown right across the country. There are provincial governments that are transitioning to full producer responsibility where it used to be cost-shared. There are new provinces that are coming online, namely, Nova Scotia, New Brunswick, Alberta, and an expansion in B.C. Right now, there's a lot of activity as it relates to producer responsibility.
I want to call out the leadership of the municipal sectors. Using their bylaws, some of them have banned the use and purchase of certain products and materials. They have made their suppliers and vendors more responsible through their procurement requirements. They are using their power of buying collectively and individually. Of course, their leadership is through their bylaws. Municipalities have been a tremendous convenor in terms of coalescing and educating their residents as well. There's tremendous leadership, and, really, Quebec is at the helm of that.
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Defining disincentives could be different, depending on the vantage point. With the introduction of producer responsibility, one of its objectives was in fact to disincentivize or incent, depending on which side of the coin you're looking at, producers and manufacturers to look at better designed goods, be it swapping out materials for a better choice or maybe refill or reuse. Then sort of, lastly, it was about really understanding the costs of the system. Before there was producer responsibility, industry had no idea how much municipalities and taxpayers were actually spending on blue boxes.
There are opportunities for us to look at costing pollution. A great example of that is charging for plastic bags at the point of sale. I was involved many moons ago, when the provincial Government of Ontario was contemplating banning plastic bags. There was, obviously, a reaction by the retail sector, as we would expect, and the plastic manufacturers of plastic bags. In lieu of banning them from sale, they worked with the province, and us as a convenor in that discussion, to look at other mechanisms.
What they committed to was actually reducing the supply of plastic bags to consumers by half at a certain time frame. They exceeded that time frame, and they exceeded that amount. Many of them actually priced a plastic bag and offered a reusable one, which we now know is really quite successful. In fact, it carved the runway for the federal government, the Government of Canada, to come in and effectively ban them as a single-use item.
Disincentives and pricing pollution can be a very effective tool to incent the kind of behaviour you want and not to incent the behaviour you don't, and that's at every level.
That brings us to the end of our first panel.
Thank you to the witnesses, Krista Scaldwell and Jo-Anne St. Godard, for your testimonies and participation in the committee's study of innovation, science and research in recycling plastics. Please see the clerk for any questions. You may also submit additional information through the clerk.
We'll suspend briefly to allow our witnesses to leave, and we'll resume with our second panel.
:
I call the meeting back to order.
Our in-person witnesses haven't appeared yet. In the interest of time, I think we'll start with our virtual witnesses so that we can get under way.
Welcome back. For those participating by video conference, click on the microphone icon to activate your mic. Please mute yourself when you're not speaking. For interpretation for those on Zoom, you have the choice at the bottom of your screen of floor, English or French.
It's now my pleasure to welcome, by video conference from Coalia, Éric Leclair, plastic engineering director. Also appearing by video conference, we have Michelle Saunders, vice-president of sustainability, from Food, Health & Consumer Products of Canada.
Up to five minutes will be given for opening remarks, after which we'll proceed with rounds of questions.
We'll begin with Mr. Leclair. I invite you to make an opening statement for up to five minutes.
:
Good afternoon, everyone.
My name is Éric Leclair, and I am the director of plastic processing at Coalia.
Coalia is a college centre for technology transfer in Quebec, and the only centre specializing in plastics. We are a technology access centre and the only one working in the plastic manufacturing sector in all of Canada. Coalia is a non-profit organization, located at the Cégep de Thetford, in Quebec, and has about 35 employees.
We are active in a variety of sectors, and plastics recycling is an important activity for our organization. We do work for the entire supply chain, whether it be municipal sorting centres, recyclers, users, process managers who mould new parts, or industries that generate plastic waste.
We find the best ways to recycle polymers. We have a wide range of recycling transformation tools. We have good labs specialized in identifying characteristics. We also collaborate with various universities, as well as other organizations such as Recyc-Québec and Éco Entreprises Québec. At the Canadian level, we conduct activities with the Circular Plastics Taskforce.
Having said that, I have no idea why I was called here today.
:
Thank you very much, Chair and members of the committee. I appreciate the opportunity to speak today on the critical issue of plastics recycling.
Food, Health & Consumer Products of Canada, or FHCP, is the leading national trade association representing manufacturers of food, beverages, consumer goods and health products. Members are Canadian-owned and international companies of all sizes, manufacturing both company-owned, branded products and private label or store brand products. Together, they produce the vast majority of packaged goods sold in every aisle of Canada's grocery stores and pharmacies.
Sustainability is a key priority for FHCP, and our efforts on plastics, plastics recycling and extended producer responsibility, or EPR, impact all of our members.
In 2019, FHCP endorsed the Ellen MacArthur Foundation's vision for a new plastics economy. This focuses on eliminating plastic pollution through better product design and innovation; collecting and recycling, reusing or composting the plastics in the market; and reducing the reliance on virgin, petroleum-based plastic resins to reduce greenhouse gas emissions.
Our work with plastics recycling is threefold.
First, FHCP supports our members in packaging innovations. Our members are largely transitioning their packaging portfolios to align with the golden design rules for plastic packaging, which are a set of common principles to improve design for recyclability.
Second, FHCP and our members are actively engaged in discussions with the federal government on matters related to plastics. Each of the policies considered by Environment and Climate Change Canada—be they the federal plastics registry or policies like recycled content mandates for certain product categories and labelling requirements for recyclability and compostability—directly links to provincially mandated EPR.
Third, FHCP directly engages with provincial governments, regulatory bodies and producer organizations, like Circular Materials and Éco Entreprises Québec, to ensure that provincial policy will result in the development and implementation of effective and efficient recycling programs.
EPR has been in effect in various forms in Canada since 2004, expanding across the country and transitioning all programs to full EPR. This means that industry is assuming the full responsibility for the financing and delivery of province-wide curbside recycling programs. By 2027, 97% of Canadians will live in a jurisdiction with full EPR.
Over the past 20 years, Canadian producers have contributed more than $6.3 billion. In 2024, producer costs across Canada exceeded $1 billion.
We support EPR as the only way to achieve scale and ensure appropriate outcomes for materials, but the rapid pace of massive cost escalation is unsustainable. We need governments, including the federal government, to make strategic capital investments in recycling capacity and new technologies.
Research commissioned by the federal government indicates a $6.5-billion technology gap to achieve a circular economy. This cannot be borne by producers alone. Plastic is a resource. We must ensure that it is collected and does not enter the environment, but not all plastics are the same. Mechanical recycling is a good solution to process rigid plastics, but we have extremely limited outcomes in Canada with flexible plastics and need strategic investments to ensure that we have sufficient and appropriate processing capacity and end markets for this material. We need targets that are ambitious but achievable and reflect the material that is in the market.
Lastly, we need engagement throughout the federal government, including Environment and Climate Change Canada, Health Canada, Agriculture and Agri-Food Canada, Innovation, Science and Economic Development and the Canada Infrastructure Bank. We must work together to scale and accelerate a circular economy for plastics as a priority for the government, for industry and for the environment.
Thank you.
Good evening, honourable members of the committee. I am Sarika Kumari, CEO of BioLabMate. It is an honour to speak with you today on the subject of innovation, science and research in recycling plastics, with a particular emphasis on the critical issue of plastic waste generated in research labs and medical facilities.
Globally, we generate approximately 300 million tonnes of plastic waste annually, with a significant portion attributed to the medical and research sector. The COVID-19 pandemic has intensified this challenge, increasing reliance on PPE, testing kits and other disposable plastic items. Research labs alone contribute around 5.5 million tonnes of plastic waste each year, a number equivalent to the total plastic waste output of some small countries.
Single-use plastic in research labs remains a significant but frequently overlooked problem. For instance, a single lab can produce around 44,600 pieces of single-use plastic monthly, depending on the size of the lab, costing in Canadian dollars between $14,000 and $18,000 and weighing up to 60 kilograms or 80 kilograms. When you scale across entire university and research institutes, the magnitude of the problem becomes clear.
At BioLabMate we conducted extensive market research, engaging with over 100 potential customers in research and health care settings. Through this process, we identified bioplastics as a viable and sustainable solution. Our focus is on utilizing locally available renewable resources, specifically seaweed, to create bioplastic that can replace traditional single-use plastic items seamlessly.
While recycling has long been promoted as a solution to plastic waste, it is not enough to address the scale of the issue. Recycling is often hindered by several challenges—for example, contamination. Plastics mixed with food and other waste are difficult to recycle effectively. There are infrastructure gaps. Canada's recycling infrastructure is insufficient for the handling of all recyclable materials. There's also downcycling. Plastics often degrade in quality after recycling, making them unsuitable for reuse in precision environments like research labs.
To address the challenges, we recommend stricter regulations on what types of plastics can be recycled, investment in advanced recycling technologies, and public education, particularly in the research lab, to improve recycling practices and reduce contamination.
At BioLabMate we view bioplastics as a crucial part of the solution to plastic waste in research labs. Unlike conventional plastics derived from fossil fuels, bioplastics are made from such renewable resources as seaweed. These bioplastics are designed to be biodegradable or compostable, significantly reducing their environmental impact. Our seaweed-based bioplastics are ideal for replacing single-use items in labs, such as tips, plates and tubes, thereby cutting both waste and carbon emissions.
Seaweed as the primary material for our bioplastics offers a host of benefits. For example, on environmental impact, seaweed is a rapidly renewable resource that absorbs CO2, helping to mitigate climate change. It grows without fresh water, fertilizers or pesticides, making it a sustainable alternative to land-based crops. In terms of the economic opportunity, seaweed farming provides a new source of revenue for coastal communities, especially in Atlantic Canada, offering job creation and economic diversification.
Despite the potential of bioplastics, there are hurdles to overcome. For example, there's the cost. Currently, bioplastics are more expensive than traditional plastics, but we anticipate that costs will decrease with growing demand and increased production. In terms of infrastructure, the limited number of industrial composting facilities in Canada hinders the proper degradation of these bioplastics. There's also R and D support. Continued research is essential to improve the performance and cost-effectiveness of bioplastics.
We urge the government to provide grants and subsidies for companies like BioLabMate that are developing sustainable alternatives; mandate the use of bioplastics in high-risk sectors, particularly health care and research; support research and development to accelerate bioplastics adoption; and expand composting infrastructure to ensure that bioplastics are processed correctly.
Recycling alone cannot solve Canada's plastic waste crisis. A combined approach of improved recycling practices and the adoption of bioplastics is essential. BioLabMate’s seaweed-based bioplastics offer a sustainable and scalable alternative, particularly for the research and medical sectors. With government support, Canada can lead the transition to a circular economy, significantly reducing both plastic waste and its environmental impact.
Thank you for your time. I look forward to your questions.
This is for the Food, Health & Consumer Products of Canada. We talked with the previous witnesses about the standardization of containers and the reuse of containers. I know, just in my own life, that the 20-litre water jugs, for example, are major plastic items that the private sector has totally developed a reuse circular economy for. I also noticed that where I come from, in the honey capital of Canada, no matter which honey farm I go to, it seems that the honey ends up in the exact same container, just with a different name on it.
What kind of work is being done with that, and how will that impact, say, the recycle versus reuse and the standardization of these products?
:
Thank you for that question.
I think the standardization of packaging for a broad spectrum of products is a pretty hefty ask. I think, within product categories, certainly we are seeing efforts to standardize certain product packaging. However, producers need the opportunity to define and to determine the best material that suits their particular product, whether it is food product, beverage, consumer goods or a medical device or health product. They need to make sure that their consumer can afford it and will accept it.
There are a lot of considerations that go into the packaging decisions. We hear the conversation on standardization. I would just tell you that we are working with a common set of principles to improve recyclability by design.
What we've seen across the country—whether it's with provincial EPR or federal plastics policies—is governments implementing or proposing regulations, and then lifting their hands. What we need are governments that remain engaged and make strategic investments that enable and accelerate scalable solutions to recycling plastics, encouraging recycled content where it's appropriate and safe to do so.
We believe there is opportunity within Environment and Climate Change Canada, Innovation, Science and Economic Development, and the Canada Infrastructure Bank to make sizable strategic investments, rather than piecemeal—
Thank you, witnesses.
I want to continue along the line of questioning that Mr. Viersen was just going down with Ms. Saunders.
If we look at provincial and federal responsibilities in this area, the Canadian Council of Ministers of the Environment has come up with a strategy for zero plastic waste for Canada. They have 10 items in that strategy. The eighth item in the strategy has to do with science and research, which is where this committee picks up the thread. It says, “decision makers require robust evidence” and data in order to make the proper decisions, and that the research can happen “on a number of fronts, to improve understanding of where macro- and micro-plastic [waste] comes from, how it enters the environment and, the impacts it has on people and the environment.”
I'm wondering, from your perspective, in terms of research.... A previous witness today said that we've researched this thing more than it needs to be. It seems to me there's still research needed around where plastic is entering the waste streams, how much plastic waste is being generated, and how plastic waste is being reused and entering other applications as an input to other industries.
Could you comment on where the industry is at in terms of monitoring plastic waste and the opportunities? It isn't waste. It's plastic resource. How do we use a resource that isn't fit for purpose in one application but may be in others?
:
Thank you very much for that thoughtful question.
We fundamentally agree that plastic is a resource. It is both a material and an economic resource to be recovered. It should never enter the environment.
We work with all of the provincial governments across the country and the federal government on data collection. Our members are constantly reporting on the materials coming into the system that they are supplying, either through import or domestic manufacturing. That's at the provincial level.
We also work with producer responsibility organizations, which then report on the outcomes. That's an eventuality. We don't have that nuance in the system yet.
We're working with the federal government on the federal plastics registry. The aim of that initiative is to help harmonize the data among the EPR programs and understand the flow. We fundamentally support good data to make all informed decisions. We have some concerns and have made some recommendations to the government. Producers are pretty stretched in their ability. The volume and granularity of data being asked of them is pretty tough for anyone other than the largest companies, but we certainly support good data.
In the field of research, basic or applied, the crux of the matter is money. Here at the Standing Committee on Science and Research, we have heard from a number of witnesses. I have spoken many times with representatives, including people from Synchronex and the network of college centres for technology transfer, the CCTTs, who always talked about the difficulty in obtaining funding from the federal government.
The unique features of CCTTs are not necessarily recognized. Actually, there are currently 59 of them in Quebec. I am proud to be able to tell everyone that the first ever CCTT is located in my region, the Lower St. Lawrence. As we know, Quebeckers have a creative and innovative side, but money is needed to carry out projects.
One of the requests made several times by CCTT and Synchronex representatives was that the Natural Sciences and Engineering Research Council of Canada provide CCTTs with funding in excess of $100,000. In the rest of Canada, it provides $350,000 to technology access centres, which you mentioned in your presentation.
It's as if because of the amount of innovation coming from CCTTs in Quebec, the council feels justified in limiting funding to $100,000. Have you ever been the target of this injustice that the CCTTs in Quebec are currently experiencing?
:
Thanks. I'm always happy to talk about EPR. It is what keeps our members awake at night.
It is a policy tool whereby industry across the board assumes responsibility for funding and delivering recycling programs that we call “blue box” in most provinces. We work with provincial governments and producer responsibility organizations.
It really is a way for producers to have control of the system to make sure that we're designing systems and materials that go together and can be collected. We have greater insight when industry is leading EPR versus the old, historical municipal programs that really didn't allow for scale.
One of the things we need to be exploring with EPR is producers having access to their materials once they've been collected, because we have to be recouping for recycled content. We can't just be purchasing on an open market. The demand is significant. We're also very mindful of EPR being introduced in the United States. That will really impact the cost of recycled resins in Canada.
We fully support EPR. We think there are a lot of refinements, but we're really looking to work with provincial governments to better align some of the regulatory provisions in their EPR programs.
:
Thank you, Madam Chair.
I appreciate everyone being here today and also your presentations. It's quite helpful that we've heard over the last couple of weeks a lot of very similar information from everybody, especially when we talk. We've learned a lot about bioplastics and where we go between virgin plastic and bioplastic and the steps we need to take.
I find it interesting that the great Paul Harvey once said that self-government does not work without self-discipline. In my previous life, I was the registrar for a profession, and I used to say to my professionals that without self-discipline and self-regulation we're doomed to be falling into the hands of government, and that's a big concern.
You're an industry that wants to regulate itself and should be able to self-sustain as well. We've heard oftentimes throughout these meetings from many people who are coming here and saying, “We want government money.” My question, I guess, to start off with you, Ms. Kumari, is this: What does the profession, the industry, need to do to self-sustain?
That leads into my next question.
A lot of what you talked about regarding issues with bioplastics.... We talk about medicine and health care. The average Canadian listening today hears about plastics and goes, “Okay, well, they're going to bioplastics.” However, the reality is that it's not doable. Look at things like syringes, IV lines, intubation tubes, catheters, masks and gloves. They all contain a PFA—polyfluoroalkyl—which is part of virgin plastics.
If, all of a sudden, this government bans PFAS, it's going to have a huge impact. If we go to a bioplastic and get water on it.... We heard from witnesses just last week. The moment it gets water on it, it becomes compostable, all of a sudden. How do you use that in an IV line you're running a fluid through? How do you do that via a syringe or an intubation tube?
I'd like to get your comments on that, if I could.
:
The first thing we should understand is that we need data. Bioplastics have not been especially used in the research lab or medical facility. We do not have good data.
Sarika and I talked to different labs. We stood around talking to lab managers, seeking data on what kind of plastic they're using, where they are using it and whether they're using it with lifelines—for example, human biocells and such things, which cannot be recycled. Is it just used for experimentation and thrown into the garbage, or can it also be recycled and used?
The thing is that the data is not there, exactly. It's difficult for us to make any judgment on that part. If we have the data, we can come out and say, “Okay, we can replace this kind of plastic.” Sarika and I always say that a biolab should never target replacing everything in the medical sector. However, there are some high quantities that can be replaced with other practices.
We have to know what data is out there, and we always—
:
Thank you very much, Madam Chair.
Welcome to our witnesses.
As an Atlantic Canadian on the panel, I'm going to turn, first of all, to the doctors from Newfoundland. Welcome to our committee.
I read your mandate. It says, “We are on a mission to eradicate the single use of plastic from research labs and medical facilities!” That is the concentration of what you were talking about, particularly in Newfoundland and the Atlantic provinces. I believe that's what I read.
Dr. Dubey, you were talking about not having enough data. How do we get you data, or how do you get data? How does that happen? Who else do you work with, whether it's in Atlantic Canada or anywhere else, in the research you're doing?
:
I think over the last two or three years when we started working with bioplastic, especially with the seaweed, we started seeing new things are coming, like the new accelerator program from the Ocean Supercluster and all those things. They started coming and supporting us. As well, there are provinces like Nova Scotia that are heavily building on those. Newfoundland started seeing the importance of seaweed as a secondary source of revenue for the fishermen, as well as using it for multiple purposes, including bioplastic.
We expect that the federal government can help with the understanding of these regulations on seaweed growing because whenever you are dealing with bioplastic, you require feedstock in a high quantity. There are strict environmental rules, but the growing of the seaweed has no harm on the environment.
There has to be some research done, so, of course, you need some money for the research. I just talked about the European partners, and we see those people, their universities and their governments heavily investing in the enhancement of bioplastic capacity at the university level.
:
Thank you, Madam Chair.
Ms. Kumari and Mr. Dubey, you said that we need more data. I want to understand exactly what data we need.
In the first hour of the meeting, the Circular Innovation Council said that we didn't need to conduct any more research. We already have an overview of the situation and we know what to do. I can understand innovation. However, when it comes to recycling, we already know what to do. We just don't do it.
Can you elaborate on this topic?
We are actively engaged in discussions with Environment and Climate Change Canada on the establishment of the plastics registry. We fully support good data. This will be a really heavy lift for producers that, in fact, don't have a lot of the data that is requested.
Our recommendation to Environment and Climate Change Canada is to more closely and precisely align with definitions and terms in provincial EPR programs so that producers fully understand their obligations.
Really, our priority would be to focus on consumer-facing packaging, which is already captured under provincial EPR programs. That would be our priority as a start.
:
If that's for me, I would love to take that 30 seconds. Thank you very much.
Good data is absolutely mandatory for good decisions. We need that. We need research in plastics recycling and we need data.
Industry needs support. There have been tremendous external realities. The closure of China as an export market for us in 2018 and COVID in 2020 caused massive disruptions, both for the consumer packaged goods sector as well as the waste management sector.
What we're seeing now is cost and a lack of investment over time because we've had other priorities, like keeping businesses running and keeping our employees and families healthy. We need investments because we are faced with inflationary pressure, and we do not have the infrastructure in place today to meet our regulatory obligations or the goals of government. We're really looking for a lot of support and continued collaboration.
Thanks very much for that.
I want to thank our witnesses, Dr. Kumari, Mr. Dubey, Mr. Leclair and Ms. Saunders, for their testimonies and participation in the committee's study of innovation, science and research in recycling plastics.
If you have any additional information that you wish to submit, you may do so in written form through the clerk.
Our next committee meeting will be on Thursday, October 3. That will be our final session on the recycling of plastics.
Is it the will of the committee to adjourn?
The meeting is adjourned.