This ‘Regulatory Framework Paper’ mainly introduces the regulatory framework document for plastic packaging and certain single-use plastics in Canada, including recycled content requirements, recyclability and compostability labelling rules, etc., aiming to promote the circular economy of plastics and achieve the goal of zero plastic waste.

1. Background and Objectives

Zero Plastic Waste Agenda:

Canadians are concerned about plastic waste and pollution, and the government is taking various measures, such as investing in scientific research, greening government operations and procurement, and cooperating with all parties, to achieve the goal of zero plastic waste. Plastic packaging and single-use plastics account for a large proportion in the Canadian plastics economy, but the recycling rate is low. Circular economy measures can reduce pollution, create revenue and employment opportunities.

Packaging, Single-Use Plastics and the Circular Economy:

Reducing plastic use and adopting reusable options are preferred. However, for plastic packaging and single-use plastics that are unavoidably used, recycling is crucial. Currently, there are efficiency problems in the Canadian recycling system, and it is necessary to improve the collection rate and maintain the sorting and reprocessing rates to achieve the circular economy of plastics.

2. Overview of the Regulatory Framework

Federal Measures: 

The government intends to formulate regulations based on the Canadian Environmental Protection Act, including recycled content requirements, recyclability labelling rules, and compostability labelling rules.

Provincial and Territorial Measures: 

The extended producer responsibility (EPR) policies at the provincial and territorial levels cooperate with the federal regulations. The EPR policies will cover most provinces and territories by 2030 to expand recycling programs, encourage recyclable design, and improve recycling infrastructure and consistency.

Impacts: 

Each measure, alone or in combination, will have a positive impact on trust and participation, ecological design, system efficiency, etc., and promote the achievement of the zero plastic waste goal.

3. Scope of Application

Regulated Parties: 

Targeting entities that have the greatest control over the design and marketing of plastic packaging and single-use plastics, usually brand owners, which is consistent with the provincial and territorial EPR policies.

Application to Plastic Packaging and Single-Use Plastics: 

The regulations apply to the recycled content and labelling requirements of plastic packaging, and the labelling rules also apply to single-use plastics. Packaging is divided into multiple categories, and different categories have different recycled content and labelling requirements, and some packaging is exempted.

4. Recycled Content Requirements

Special Rules: 

Companies with an annual gross revenue of less than 5 million Canadian dollars or placing less than 10 tons of plastic packaging on the Canadian market can be exempted from the recycled content requirements.

Scope: 

Plastic packaging is divided into two broad categories: rigid and flexible, which are further subdivided into different subcategories. Some packaging subcategories related to health, safety, etc. can be exempted from the recycled content requirements.

Recycled Content Levels and Timelines: 

Regulated companies need to use the specified minimum amount of recycled content in each type of packaging and gradually increase the requirements according to the product category and timeline. In the early stage, only reporting is required, and later, actual use is required.

Demonstrating Compliance: 

Companies need to calculate the recycled content mass requirement according to the formula and record it. In the initial stage, they self-certify compliance, and starting from 2028, they need third-party certification or verification to ensure the accuracy of data and calculations.

Acceptable Sources of Secondary Plastic: 

Recycled content only refers to post-consumer resin (PCR). Chemically recycled resin needs to ensure mass balance, and the "book and claim" (credit trading) model is not allowed to obtain recycled content. Companies need to report and record relevant information.

5. Recyclability and Compostability Labelling Rules

Scope: 

Applicable to primary and secondary plastic packaging and single-use plastics for consumers. There are some exemptions for recyclability labelling rules, and there is no exemption for compostability labelling rules.

Prohibited Activities: 

Prohibiting the use of relevant symbols and terms that do not comply with the rules.

Measuring Recyclability: 

Based on the overall system performance and material flow, evaluate the recyclability of items in each province or territory, and meet the three criteria of collection, sorting, and reprocessing.

Recyclability Labelling Requirements: 

Classify and label items according to the evaluation results. The label format is specified and a QR code needs to be included to provide detailed recycling information.

Compostability Labelling Requirements: 

Prohibiting the use of misleading terms such as "degradable", the "compostable" label requires third-party certification, meets multiple standards, and has specific label requirements. Plastic PLU product stickers need to be compostable but are exempted from some wording/coloring requirements.

Timelines: 

The labelling requirements will be phased in until 2030, consistent with the implementation of other policies and projects.

Technical Guidelines: 

The government will develop technical guidelines to help regulated parties understand their obligations.

6. Next Steps:

Invite all parties to provide feedback before May 18, 2023, then publish the draft regulations and solicit comments again. The final regulations are expected to be published by the end of 2024.