The Ontario government is considering legislative changes that would allow it to control the ballooning costs of the province’s privatized Blue Box recycling program, and is threatening to replace Circular Materials, which runs the province-wide program, with a new administrator.
The government is also proposing to cancel curbside collection of flexible plastics and rescind a requirement for curbside pick-up of overflow recycling put out by residents in bales or bags.
Those changes are part of a technical briefing document provided to the Star in advance of a public announcement on proposed legislative amendments expected this week.
If implemented, the amendments would give the province unprecedented control over negotiations between private companies in the recycling industry — the so-called Producer Responsibility Organizations, or PROs, that manage the collection and processing of recyclables, and the industries, institutions and businesses, referred to as producers, that fund the program.
“It appears the government is saying producers are unable to contain costs and drive efficiency and innovations without the government intervening,” said environmental consultant Peter Hargreave.
“It’s a very weird message for a conservative government,” which Hargreave notes has an economic policy centered on building an independent and self-reliant economy.
Circular Materials was founded as a non-profit by a number of major brands, administers the recycling program — a role that was necessary after the province transitioned to a recycling system called “extended producer responsibility,” or EPR, which meant municipalities no longer shared the cost.
The organization, which is also a PRO, said in an email that it is aware of the proposed regulatory changes.
“As the only not-for-profit producer responsibility organization supporting Ontario’s transition to the new Blue Box program, Circular Materials has worked collaboratively with producers, municipalities, collectors, processors, and government partners to implement the largest recycling system transformation ever undertaken in Canada,” said Allen Langdon, the company’s CEO.
“Potentially removing materials and introducing changes now will be challenging as Ontario’s recycling system has been built based on the government’s original intent and regulatory requirements,” said Langdon.
The Canadian Beverage Association said the changes are needed.
“Clearer fee schedules, more consistent cost reporting and stronger contract practices would increase predictability for producers and improve the investment climate for the sector,” said Krista Scaldwell, president of the Canadian Beverage Association.
“While the proposed amendments are a positive step, further work is needed to address escalating costs, improve fee predictability, and deliver value for producer investments,” she said.
The Retail Council of Canada, which represents major retailers and independents, said the transition to EPR has been a “significant undertaking” and that it recognized “the growing cost pressures facing the Blue Box system,” according to an email from Michael Zabaneh, the council’s vice president of sustainability.
However, Zabaneh said that producers, which “fund the system and remain accountable for meeting regulatory obligations…must retain meaningful financial and operational control to manage costs, deliver services efficiently and achieve environmental objectives.”
