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Archive for Blue Box

Paper-based Packaging Leads the Way for Ontario’s Household Blue Box Program

Paper-based packaging continues to be a success story in Ontario’s household Blue Box program, as measured by marketed tonnage, based on new data released by the Resource Productivity and Recovery Authority (RPRA), the regulator mandated by the Government of Ontario to enforce the province’s circular economy laws.

RPRA’s new Datacall Report summarizes information generated by the 246 programs participating in the Ontario Blue Box Program in 2021, and highlights residential waste management statistics and trends.

Overall, the program saw a decline in the provincial diversion rate to 49.1%, a stat the program has mostly hovered at for the past 10 years as shown in Figure 1 (all charts in this blog are from RPRA’s Datacall Report).

Diversion is measured after the collected material has been processed at a material recycling facility (MRF). So that essentially means that nearly half of what is placed in the Blue Box does not get recycled, which could be for a number of different reasons, such as contamination (food soiled materials, such as used yogurt or peanut butter containers, for example), materials that are not readily recyclable (e.g., hangers, toys), or residents not properly separating their waste and incorrectly placing non-recyclables (i.e. organics, waste) in their Blue Boxes.

Of interest to the Paper and Paperboard Packaging Environmental Council (PPEC) and its members is marketed Blue Box tonnage (Figure 3), which represents materials that have been sorted and processed by a MRF, and then baled, sold, and used in place of virgin materials.

These are materials that are actually recycled and paper-based packaging – which includes old corrugated cardboard, old boxboard, and a portion of residential mixed papers and mixed fibres packaging – leads the way in the most marketed materials with 289,689 tonnes marketed in 2021 (up from 271,433 tonnes in 2020), representing 39% of the total Blue Box marketed tonnage (736,379).

Paper-based packaging leads the way in the most marketed materials with 289,689 tonnes marketed in 2021.

The second largest material is printed paper – newsprint, household fine paper, telephone books, and catalogues – with 20% of marketed tonnes. However, this category continues to decline year over year as more homes go paperless (when was the last time you saw a telephone book?!).

Printed papers have experienced a nearly 66% decline in tonnage from 2016-2021, as shown in Table 4, while paper-based packaging has increased by 72.5% over the same period.

In analyzing the latest Ontario Blue Box data, it’s clear that paper is a success story. More than two-thirds of all paper that Ontario households generate is not just collected but actually recycled through Ontario’s Blue Box program. And much of the recovered paper fibres are supplied to PPEC member mills who use it to produce new paper packaging products, including boxes and cartons, made primarily of recycled content.

The Ontario Blue Box program begins its transition to a new producer responsibility regulatory framework starting this July, which will see producers take over 100% of the operational and financial management of the program by December 31, 2025.

There is no doubt that paper-based packaging will continue to be an important component of the Ontario Blue Box program – and PPEC expects to see a continued increase in paper packaging as brands shift from other types of packaging to sustainable, renewable, and recyclable paper-based packaging – but we will be watching the transition closely. The hope is that a shift to a producer responsibility will result in improved end markets, better sorting by residents, less contamination, and overall higher diversion and recycling rates in Ontario.

Glossary of Key Recycling Terms
(Definitions adapted from RPRA)
 
Collected Blue Box Tonnes: Blue Box materials that are collected curbside and/or at a depot.
 
Disposed Tonnes: Includes garbage and processing residuals from recycling and composting operations disposed at a landfill or incineration facilities.
 
Diverted Tonnes: Includes recycling activities, municipal organic collection and processing activities, provincial deposit systems for alcohol containers, residential on-property management and municipally operated reuse activities.
 
Generated Tonnes: Includes recycling, reuse and garbage material produced by Ontario residents; represents combination of disposed tonnes and diverted tonnes.
 
Landfilled residential material: Includes garbage Tonnes and processing residues; part of Disposed Tonnes calculation.
 
Marketed Blue Box Tonnes: Blue Box materials sorted and processed by a Material Recycling Facility (MRF) that is then sold and used in place of virgin materials.
 
Diversion Rate: Diverted Tonnes / Generated Tonnes x 100

Rachel Kagan

Executive Director Paper & Paperboard Packaging Environmental Council (PPEC)

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Are we putting the cart before the horse when it comes to EPR in the IC&I sector?

The Paper and Paperboard Packaging Environmental Council (PPEC) monitors environmental issues impacting the Canadian paper packaging industry, especially recycling, since recycled paper-based materials are an important supply of our industry’s feedstock.
 
To that end, we track federal and provincial government activities on Extended Producer Responsibility (EPR), which is a policy approach in which a producer is made financially and physically responsible for ensuring their packaging is properly managed at the end of its life.
 
In Canada, EPR policies have been mostly applied to managing waste and recyclables in the residential sector – that’s you and I at home – while paper and packaging from the Industrial, Commercial, and Institutional (IC&I) sector is managed separately.
 
But lately, some provincial governments have been considering EPR approaches for managing paper and packaging materials from the IC&I sector, similar to the approach used for managing materials from residential sources, leaving PPEC to wonder if we are putting the cart before the horse when it comes to EPR and the IC&I sector.
Current State of EPR
 
Historically, paper and packaging recycling for residential communities has been provided by municipalities as part of their waste management services. And over the last few decades, several provincial governments passed legislation that legally require businesses who make and sell packaging to submit data reports and fund municipal recycling costs. These are known as “cost-shared” program models, wherein municipalities run the programs and businesses pay a portion of the costs.
 
However, over the past few years, there has been a shift to move towards EPR-based models, where businesses would be responsible for 100% of program operations and funding. If municipalities want to continue their role as a service provider, they would need to agree to terms set by industry; otherwise, industry will negotiate with waste collectors, haulers, and processing facilities directly.
 
This EPR model currently only truly exists in British Columbia but is being rolled out in other provinces within the next few years.
The above map shows the status of provincial recycling programs for managing residential paper and packaging, but what about paper and packaging from the IC&I sector…
 
Paper and Packaging in the IC&I Sector
 
In the IC&I sector – which includes office buildings, schools, hospitals, retailers, grocers, malls, stadiums, theatres, restaurants, and manufacturing facilities – businesses are responsible for managing their own waste and recyclables. This is typically done through business-to-business relationships, where businesses contract directly with waste management service providers.
 
But over the last few years, some provincial governments have been discussing the possibility of an EPR approach for the IC&I sector.
 
In fact, Québec became the first precedent-setting province to regulate EPR for managing IC&I materials. It came as part of their move to modernize the existing recycling system for packaging, with the full rollout of the new EPR system for curbside residential and IC&I expected to be completed by January 1, 2025.
 
British Columbia’s EPR Five-Year Action Plan states that the government is evaluating opportunities and policy options related to improving the recovery and recycling of packaging and paper in the IC&I sector. That does not necessarily mean British Columbia will implement an EPR approach for IC&I, but it does appear to be something they are potentially considering.
 
And lately, other provinces that have been consulting on establishing new EPR approaches for residential waste streams have also been considering whether to include some IC&I sources of waste in future EPR programs.
 
PPEC’s Perspective 
 
While PPEC supports increased diversion and recycling of paper packaging materials from all sectors, IC&I included, we believe that EPR is not necessarily the right overarching policy approach for managing these materials, especially since they are currently being collected and recycled in many jurisdictions across Canada.
 
First, we can’t assume the same approach used for residential will work for the IC&I sector, as they are two very different and distinct waste streams.
 
Second, we question if EPR, as it is currently structured and understood, is working as effectively and efficiently as it could be for Canada’s residential Blue Box programs. It may be premature to suggest that the model is right and should be considered for other sectors. The reality is only one province, British Columbia, currently has a true EPR model; while other provinces are in the midst of transitioning programs to EPR or are just starting to develop new programs. It will take time to see if these shifts to EPR result in improved consumer participation, less contamination, better program performance, and overall higher recycling rates.
 
And third, producers are already taking responsibility for managing their waste and recyclables in the IC&I sector. We know materials are being recycled in the sector as we see it happening firsthand in our industry every single day. Most PPEC member mills use recycled paper packaging materials, including cardboard – collected from commercial and residential sources – as their primary feedstock, allowing them to use high amounts of recycled content in the major paper packaging grades made in Canada. In many cases, PPEC members have their own recycling divisions to make sure they have a good supply of recycled paper fibres that they rely on. Using recycled content is an inherent part of the Canadian paper packaging industry’s operations, and it has been that way for decades.

Bales of Old Corrugated Containers (OCC), collected from commercial sources and processed at the Cascades Recovery+ facility in Scarborough, Ontario, are ready to be sent to a mill, where they will be recycled so they can be remade into new paper-based packaging. Photo taken by PPEC on April 14, 2023.

The Need for Data
 
It is important that any policy considerations or future decisions be based on sound data. As we stated earlier, paper and packaging in the IC&I sector is already being collected and recycled as businesses contract directly with waste management service providers to collect and recycle their packaging and shipping materials.
 
PPEC reviewed the latest available data from Statistics Canada’s Biennial Waste Management Survey, which tracks waste diversion from the IC&I sector, and it shows that paper fibres lead the way when it comes to diverted materials from non-residential sources (which includes both the IC&I and the Construction, Renovation and Demolition sectors), with 1,954,655 tonnes of paper fibres diverted in Canada in 2020, representing 46% of total diverted materials (4,214,742 tonnes based on available information) from non-residential sources.

And when it comes to provincial performance, the data shows that several provinces divert more paper fibres from non-residential sources (orange line) than from residential sources (blue line).

We recognize that this data is not perfect, but the trend is encouraging, showing that paper fibres from non-residential sources are being actively recycled and diverted from landfill in Canada.
 
But we know that not all paper fibres are being diverted.
 
According to the Government of Canada’s National Waste Characterization Report, the main waste categories in the IC&I sector in 2016 were food and non-degradables at over 60%, while the category of paper represents 14% (though no information is available to describe the composition of the paper waste).
Average national characterization of waste from the ICI sector in Canada in 2016
The data is piecemeal at best. To gain a better understanding of current IC&I waste diversion activity, better data is needed to inform policy discussions.
 
Key Takeaways and Next Steps
 
To develop effective strategies and policies for IC&I waste diversion, data is needed. We need to know the statistics about waste in the IC&I sector – how much is being generated, recycled, and disposed of, as well as the composition and types of materials – to be able to identify opportunities to increase recycling.
 
The existing data is not complete, but it does broadly illustrate what PPEC believes to be true for the Canadian paper packaging industry: that the major paper packaging grades, such as containerboard (used to make cardboard boxes) and boxboard (used to make cereal or shoe boxes), are being collected from the backs of supermarkets, malls, and factories, and being responsibly recycled and diverted from landfill. We know this because using recycled content is an inherent part of our members’ operations.
 
And when it comes to EPR and IC&I, our message to governments is clear: do not put the cart before the horse.
 
Let’s not assume that the same approach for residential recycling will work for the IC&I sector since they are two different waste streams. And let’s not assume we have the right formula for EPR.
 
In many ways, EPR for residential paper and packaging is in its infancy in Canada, with only British Columbia currently having an EPR approach, while other provinces are transitioning to producer responsibility models. It will take time to see if these shifts result in higher recycling rates and more efficient and effective systems.
 
Let’s get EPR for residential right first before we even consider applying it elsewhere. Getting it right means that consumers understand their important role in properly recycling. Getting it right means focusing beyond just collection, and recycling more of what is being collected. Getting it right means having end markets consistently available to ensure materials are being recycled.
 
In the meantime, PPEC will be watching Québec closely as the precedent-setting province that regulated an EPR approach for managing materials in the IC&I sector; and we will continue to encourage governments to collect updated data to have informed policy discussions; while we keep promoting our industry’s circular economy approach to managing paper-based packaging materials in Canada.

Rachel Kagan

Executive Director Paper & Paperboard Packaging Environmental Council (PPEC)

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Happy Holidays from PPEC

On behalf of the team at the Paper and Paperboard Packaging Environmental Council (PPEC), we would like to take this opportunity to say Happy Holidays and thank you for your unwavering support over the last year.

As we wrap up a very busy year, we wanted to reach out and share a few of the positive actions that PPEC took throughout 2022:

  • Our blog continues to be a go-to resource for information and analysis on some of the most topical issues facing the paper packaging industry. This year, PPEC examined issues like sustainably managed forests, the impact of Canada’s Ban on Single-Use Plastics, the latest biennial Waste Management Survey, the inaugural Circular Economy Month, and so much more.
  • PPEC also worked to help enhance the way the paper packaging industry’s story is told by responding to media articles with more accurate and fulsome information, including responding to a New York Times Magazine article and providing the paper packaging industry’s point of view in response to the Toronto Star article on the Ontario Blue Box program.
  • PPEC launched a new tool focused on answering some of the most frequently asked questions about paper packaging and the environment.
  • Our industry’s positive circular economy story was profiled in an article published online and a printed insert in the National Post.
  • PPEC continued to be a strong advocate to government in representing the members on key environmental issues, including proposed changes to paper and packaging recycling regulations and programs. As PPEC continued to advocate for fairness in legislated paper packaging recycling programs, we participated in government consultations, provided industry’s feedback in numerous submissions, and monitored ongoing changes across the country.

We’re excited about 2023, and we look forward to continuing our work as the trusted and credible environmental voice for the Canadian paper-based packaging industry. Together, we can promote the industry’s environmental sustainability achievements and our strong, relevant, and impactful circular economy story.

Thank you once again for your support and best wishes for a happy, healthy, and safe holiday season.

PPEC Holiday Closure

In celebration of the holiday season, the PPEC office will be closed December 26-30, 2022. The office will reopen on January 2, 2023.

Happy Holidays!

From,

Rachel Kagan

Executive Director
Paper & Paperboard Packaging Environmental Council
(PPEC)

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Statistics Canada’s New Waste Management Survey Results: Paper Represents 35% of Diversion

On November 15, 2022, Statistics Canada released the results of its biennial Waste Management Survey, containing waste diversion data for 2020, broken down by material type and diversion source (residential and non-residential).

The new data shows that Canadian households and businesses diverted 9,903,027 tonnes of waste in 2020, and of the total amount diverted, 3,502,683 tonnes were paper fibres (which includes newsprint, cardboard and boxboard, and mixed paper), representing 35% of the total amount diverted in 2020.

While paper diversion represents the majority of materials diverted from landfill in Canada, paper diversion has been trending slightly downward year over year since 2014, which could be partly attributed to the continued decline of newsprint materials due to the shift from print to digital.

The next leading category of materials diverted in Canada for 2020 was organics with 32% of the total share of diversion.

Digging deeper into the paper diversion data, of the 3.5 million total tonnes diverted in Canada in 2020, about 44% was diverted through residential sources (ie. Blue Box residential municipal recycling programs), while the remaining 56% was diverted through non-residential sources (ie. Industrial Commercial and Institutional (IC&I) collection).

Below is a breakdown of the sources of paper diversion by province, with the two most populous provinces, Ontario and Quebec, diverting the most paper fibre from both residential and non-residential (IC&I) sources.

Of the other 33% of diverted materials, Statistics Canada reported that “diverting plastic waste to avoid its disposal has become a challenge because of the many types of hard-to-recycle plastics being produced for consumption and entering the waste stream.” Of the 9.9 million total tonnes of waste materials diverted in Canada in 2020, 368,343 tonnes of plastics, or about 3.7%, were diverted.

The Government of Canada has been working to address plastic waste as part of its Zero Plastic Waste Agenda. PPEC continues to monitor government and industry activities related to plastics and we recently wrote about how Canada’s new ban on single-use plastics may impact the paper packaging industry. And while the plastics industry is looking to create a circular economy for its materials through various initiatives, including the Canada Plastics Pact, the paper packaging industry has long held a large-scale circular economy for its materials.

Using recycled materials is an inherent part of our members’ operations. For decades PPEC members have used recycled paper materials as its primary feedstock in making the three major paper packaging grades in Canada (containerboard, boxboard, and kraft paper). They use old corrugated cardboard and other paper-based materials, collected from the backs of factories, supermarkets, office buildings, and from residential recycling programs to make new paper-based packaging.

PPEC’s membership represents several different components of our industry’s recycling supply chain, not just as providers of recyclable paper-based packaging, but also as processors of collected paper materials, and as mills who are recycling and reusing the collected materials, which allows them to be remade into new paper packaging products again and again, keeping valuable raw material out of landfill.

Rachel Kagan

Executive Director Paper & Paperboard Packaging Environmental Council (PPEC)

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Government Amends Ontario Blue Box Regulation

The Government of Ontario made amendments to the Blue Box Regulation, which came into effect on April 14, 2022.

The amendments do not change the original intention of the regulation – to transition the existing Ontario Blue Box model from a shared funding model to a full producer responsibility model – and do not impact collection requirements, diversion outcomes, or key dates (transition will still begin July 1, 2023). The amendments were made to clarify the process for creating the province-wide system for collecting Blue Box materials. The key changes include:  

  • Removing the rule creation process, including the allocation table, from the regulation.
  • Allowing producer responsibility organizations PROs to collaborate on a province-wide collection system; and requiring PROs that represent producers that supply more than 66% of Blue Box tonnes to submit an operational plan to RPRA for how they will operate the system by July 1, 2022.
  • Exempting newspaper producers (whose supply accounts for at least 70% of their total Blue Box supply) from collection, management, and promotion and education requirements for two years; newspapers will remain an obligated material under the regulation, and will continue to be collected in the Blue Box system.

RPRA Webinar May 18 

The Resource Productivity and Recovery Authority (RPRA), which is the regulator mandated by the government to enforce the province’s circular economy laws, is hosting a virtual Q&A for stakeholders on May 18 at 11:00am EST to review the amendments; to register click here.

Newspaper Associations Support Newspaper Exemption

On the news of newspaper producers being exempted from the Ontario Blue Box amended regulations, both the Ontario Community Newspaper Association (OCNA), who represent provincial community newspapers, and News Media Canada, the voice of the print and digital media industry in Canada, expressed their support for the government’s decision.

Alicia McCutcheon, president of the OCNA said: “We do applaud the Ford government for doing this… We’ve never viewed ourselves as the same as the tin can or the plastic wrap people of the world, we’re not packaging,” according to the National Post’s Newspaper lobby group ‘applauds’ exemption from Ontario’s new recycling program.

And Paul Deegan, president of News Media Canada, issued a statement:

Canada’s newspaper publishers applaud the Ontario government’s leadership in recognizing that newspapers are not packaging and should be exempt from extended producer responsibility fees. We hope other provinces will follow Ontario’s lead in eliminating this punitive measure. The unintended consequence of EPR on newspapers is to reduce the number of pages in a newspaper or for the paper to simply close or go online only…. Newsprint has the highest level of collection of all recyclable materials, a stable end market, and high commercial value.” 

Newsprint and the Ontario Blue Box Program

Stewardship Ontario’s 2020 Annual Report states that: “Historically, newspapers have represented a large volume of material in the Blue Box and, because of their high recycling rate, boosted the performance of the Blue Box program overall.”

In 2010, newsprint accounted for over 55% of the total Blue Box marketed tonnes, but it now makes up 23% of tonnage, according to RPRA’s 2020 Datacall.

2020 Marketed Ontario Blue Box Materials (in tonnes,, expressed as a percentage)

Marketed tonnes represent the tonnage sorted and processed by a Material Recycling Facility, which are then baled, sold, and used in place of virgin materials. 

Paper-based Packaging – which includes old corrugated cardboard, old boxboard and a portion of residential mixed papers and mixed fibres packaging – has the largest component of Ontario Blue Box marketed tonnes (271,433 tonnes), representing 35.9% of total Blue Box marketed tonnage (756,984). 

As for the performance of Ontario’s Blue Box program, the 2019 recycling rate was 57.3%, down from 60.2% in 2018, the decline explained by Stewardship Ontario in their 2020 Annual Report:

“The reduction of newsprint, magazines and catalogues and other printed paper materials, along with higher residue rates and higher contamination standards imposed by end markets, are the main reasons for the overall decline in recycled tonnes.”

Table 4 of RPRA’s 2020 Datacall Report shows Marketed Blue Box Tonnes from 2015 to 2020, with Printed Papers – which includes newsprint, household fine paper, telephone books, and catalogues – showing a nearly 62% decline in tonnage over the five-year period; while Paper-based Packaging is up nearly 73% over the same period.

Marketed Ontario Blue Box Tonnes, 2015-2020

PPEC Commentary

It will take some time to understand the implications of the regulatory amendments, and any impacts they may have on the transition to a producer responsibility model for the Ontario Blue Box program. PPEC continues to remain concerned about the feasibility of meeting the paper targets under the new transitioned program, which we have previously written about. We will continue to monitor developments.

Rachel Kagan

Executive Director Paper & Paperboard Packaging Environmental Council (PPEC)

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Discussing the Toronto Star’s Ontario Blue Box Article

On March 19, the Toronto Star published The Ford government is overhauling Ontario’s blue box recycling program — and critics say it will be a disaster, by Business Feature Writer Richard Warnica.

The Paper and Paperboard Packaging Environmental Council (PPEC) was interviewed for the article on February 4, but our comments about paper-based packaging in Ontario’s Blue Box program, including concerns over the new paper targets and the importance of the consumer role, were not included.

The focus of the detailed article is primarily about the multiple Producer Responsibility Organization (PRO) model, and the confusion surrounding the final Blue Box regulation, which was released in June 2021, and sets out the framework to transition to a producer responsibility model.

The new model will transfer the full operational and financial management of the Ontario Blue Box program to producers, with implementation beginning July 2023.

It marks a significant change from the existing shared model, which sees producers pay 50% of municipal Blue Box costs. Producer responsibility for packaging and printed paper is not new, with British Columbia being the first province to implement a full 100% industry funded and controlled program in 2014, run by Recycle BC.

But back to the Star article. The general feeling is that the new regulation is confusing.

Jo-Anne St. Godard of the Circular Innovation Council (formerly Recycling Council of Ontario) said: “This is the most bizarre approach to packaging regulation and EPR we’ve seen.”

Denis Goulet of Miller Waste Systems said: It’s confusing to people who’ve been in the industry for 30 years.”

Duncan Bury, a consultant specializing in producer responsibility, said: “What they’ve developed is way more complicated than it needs to be, and I think there’s real worries about how this will actually roll out.”

Warnica writes that the confusion could have consequences, including meeting regulated timelines and potentially higher costs:

“It would force some municipalities to sign expensive contract extensions with existing suppliers…or work out new deals in a tight market already constrained by supply chain backlogs.”

Transition to Full Producer Responsibility Timeline

Multiple PROs…and David vs. Goliath?

Part of the confusion and complexity, some say, have to do with having a multiple PRO model, versus the current single PRO model, which is also the case in British Columbia.

The PROs that have registered to date include: Circular Materials Ontario, a not-for-profit created and governed by producers; Resource Recovery Alliance, owned and operated by GFL Environmental; and Ryse Solutions Inc.

Warnica’s article quotes Patrick Dovigi, CEO of GFL Environmental, who said: “The government at the time decided to go out with multiple PROs because they think it created competition…. All the multiple PROs dynamic does is create inefficiencies where all the costs really are.”

The article speaks to specific concerns regarding GFL. First, that their PRO may create a conflict of interest – ie. having a waste management company operate a PRO who is also contracting out business to waste management companies – and second, that they could have an unfair advantage given their size.

Jo-Anne St. Godard explained it this way: “I think you need to be able to have separate church and state,” going on to say “if you have a monopoly service provider, or one that has a very big dominant position, the buyers of that service may find themselves only having one price-taker effectively.”

In the article, Dovigi refers to himself as David, as in David vs. Goliath, with Goliath being the major producers.

David vs. Goliath and Blue Box recycling bin

Dovigi went on to say: “People are making me out to be the bad guy…and we’re just little GFL from Toronto.”

As the article points out, GFL is the fourth largest waste management company in North America with a market cap of $12.3 billion. GFL also completed 46 acquisitions in 2021, and are planning another 25-30 deals this year, according to Waste Dive.

But back to the issue of competing PROs. According to the article, both the Resource Recovery Alliance and Circular Materials Ontario have requested changes to the regulation, specifically “to reverse the central tenet calling for competing PROs, and to impose a single Producer Responsibility Organization to oversee the entire system.”

Though not everyone agrees with that. The Ontario Waste Management Association (OWMA) reaffirmed its support for the current Blue Box regulation. OWMA wrote a letter to Minister Piccini that they do not support any amendments to the regulation “that would create uncertainty for public and private waste service providers and residential customers.”

PPEC Concerns with Paper Targets and Needing to Recognize the Role of the Consumer

When PPEC spoke to Warnica in February, we talked about our concerns with the feasibility of meeting the new Ontario paper diversion targets (80% for 2026-2029, and 85% for 2030 and beyond). The below graph plots the material composition of the Ontario Blue Box program (stacked bar) and total recycled tonnage (broken line) from 2004 to 2019. Paper is the largest component of the Blue Box (the orange and blue), but the overall composition of the paper category has been changing for years, which impacts diversion. Printed paper makes up much less of the Blue Box than it used to, and paper packaging has doubled, while overall recycled tonnes are on a downward trend.

Ontario Blue Box Material Composition and Total Recycled Tonnes Chart: 2004 to 2019

With less being collected in the Blue Box, such as newspapers, while other categories, such as corrugated boxes already achieving 98% recovery from Ontario households (according to the 2020 Blue Box Pay-In Model), it begs the question of how will the overall paper diversion rate increase to meet the government’s new, higher targets?

Confusion over targets - person with question mark with "80%" and "85%" thought bubbles

PPEC commissioned a study, conducted by Dan Lantz at Crow’s Nest Environmental, to examine Blue Box diversion data to help determine if the government’s proposed diversion targets could be achieved. The study found that the proposed targets could not be met:

“A 90% target is unreachable. This would effectively require 95% of the population capturing and putting out for recycling 97% of their paper and making sure it is not contaminated at all. And then the recycling facility would have to capture 98% of all that paper (including paper that’s shredded) and send it on to the end-market.”

Diversion targets lowered but still out of reach

We also spoke about how the new model could help achieve harmonization through a more standardized system. There are 444 municipalities in Ontario, with 250 programs participating in the Blue Box program. That’s 250 separate programs, with different collection lists, and different approaches to educating their residents, aka the consumer.

And the role of the consumer is paramount to the success of any recycling program, including Ontario’s Blue Box program. At the end of the day, it is the consumer who makes the decision of how to dispose of their waste and recyclables. The more aware and educated they are, the more likely consumers are to clean and empty their recyclables, and separate them from waste and organics. Standardization may help deliver a more uniform educational message to Ontarians, which could help increase diversion and reduce contamination (the higher the contamination, the harder it is to achieve better recovery rates).

The latest Ontario Blue Box data shows that the recovery rate increased slightly in 2020 to 59.9%, which means that a little over 40% of what is placed in the Blue Box ends up in landfill.

It goes without saying that it is in everyone’s best interest to ensure that programs run efficiently, are able to capture the value of materials, prevent recyclables from ending up in landfill, and ensure consumers understand their role.

PPEC will continue to monitor the developments related to Ontario’s Blue Box regulation, and the transition to the new producer responsibility model.

Rachel Kagan

Executive Director Paper & Paperboard Packaging Environmental Council (PPEC)

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Will plastics problem spur the eventual return of deposits to Ontario?

Pile of plastic trashI love fish. Plastic not so much. This puts me in good company, it seems, with Prime Minister Justin Trudeau, who recently told the World Economic Forum that the “plastics issue” will be the main theme at the G7 leaders’ summit in Charlevoix, Quebec in June.

Trudeau’s announcement follows in the footsteps of Coca-Cola saying it intends to make bottles with 50% average recycled content by 2030 (12 years away). And Unilever calling for the consumer goods industry to step up its efforts to tackle the mounting challenge of ocean plastic waste and create a circular economy for plastics.

All good and stirring words. But how are they going to get there? Not using plastics in the first place is one option, of course. British frozen food retailer, Iceland, has just done that, committing to become the first major retailer globally to eliminate plastic packaging from all its own brand products by the end of 2023. But elimination aside, you need the most effective and efficient, not to mention the most “environmentally friendly” way to get plastics back. And what would that be?

Only 29% of plastics packaging is currently being recovered in Ontario’s multi-material Blue Box system. The Stewardship Ontario “recovery” rate for PET and HDPE bottles does the best of the plastics at 53%, followed by the mixed resins of “Other Plastics” at 32%, with plastic film lagging way behind at only 12 per cent. Nothing much has changed on the bottle front over the last 13 years of Blue Box EPR or “industry-pay” stewardship; the recovery rate for plastic bottles improving a paltry 3% over that time.

Is the answer throwing millions of dollars in promotion and education money at the good people of Ontario, to try and persuade them to increase the Blue Box plastics recovery rate from its current 29% to 50% or higher? It won’t work. Especially when there are no penalties for non-performance in the amended Blue Box program that Stewardship Ontario has passed on to the new Resource Productivity and Recovery Authority for approval. The plan indicates there will be a lot of talk about “problem materials” and maybe some research and development and “collaborative forums,” but no actual penalties for not performing.

So, what about the deposit option? Ontario is one of the few Canadian provinces not to have a full deposit/return system alongside its Blue Box. Traditionally, the Coke and Pepsi folks have been opposed to deposit schemes because they single out beverages, and the retailers have been opposed because they don’t want to become return-to-retail depots.

But maybe things are changing. Coca-Cola recently said it would consider “well-run” deposit systems. What exactly does that mean? Does it mean globally? Does it mean anything in the Ontario context? While those big questions remain unanswered, Coke is saying that it wants to get to a 50% recycled content average within 12 years. To do that you need recycled plastic feedstock, and a lot of it. Deposit schemes certainly provide that.

The recovery of plastic bottles and aluminum cans in Canada’s many provincial deposit/return programs is quite respectable. BC’s Encorp Pacific, for example, reports a 74% recovery rate for plastics and 82% for aluminum cans. In Ontario’s multi-material Blue Box, by comparison, the recovery rate for PET and HDPE bottles is 53% and aluminum food and beverage cans, a mere 42 per cent. (In fact, if you take out the non-PET (HDPE) from the bales, the real Ontario recycling rate is even lower. A direct aluminum comparison is a little tricky too. Deposit programs take only used beverage cans (UBCs). Non-deposit programs are more comprehensive, including cat food and other aluminum containers).

The plastic, steel, aluminum and glass industries may not say it publicly for fear of offending some of their major customers, but privately they are not at all opposed to deposit/return systems. And the reason is simple. They get far more material (economies of scale matter), and it’s in far better (less contaminated) condition. Quantity and quality count. On the other hand, deposit programs are known to be very expensive, with the transportation of light-weight, high-volume containers being a major cost.

A key question, of course, is what impact a deposit scheme would have on the major material remaining in the Blue Box. Paper today supplies 63% of the generated material, 75% of the recovered material, and 52% of Ontario Blue Box revenues. Basically, the Blue Box is a paper box. Would paper quality (and revenues) increase enough to make a difference?  Maybe if the stewardship body (or bodies) kept pounding on the collectors to reduce contamination, it might have some impact.

Any supportive decision by Coca-Cola, Pepsi and the retailers would clearly boil down to economics and avoided costs. We estimate that to get plastic bottles alone to a 50% recovery rate under the current Blue Box system in Ontario would cost stewards around $185 million, based on reported costs and revenues.

If you threw those plastic bottles instead into a deposit/return scheme and added other containers and factored in the avoided costs of contamination for all materials at both collection and processing stages, plus increased revenues for better quality product, including perhaps paper, then a deposit/return system with the Blue Box for paper might make sense, maybe. But you would still need the Blue Box for non-deposit containers. In British Columbia, for example, it’s understood that about 25% of the Blue Box is plastic, glass, aseptic/polycoated containers and metal material that’s not on deposit.

There are so many variables in this discussion and competing objectives. Lots of fish hooks too.

Ontario Blue Box recovery rate slips, but paper steady

Draft Blue Box Recovery Rates 2016

The reported recovery rate of Ontario’s residential Blue Box system has fallen to its lowest level since 2005. The draft recovery rates, to be finalised by Stewardship Ontario in December, show a 2016 recovery rate of 62.4%, down 2% on the previous year. This will make the recent “request” by Ontario’s minister of environment and climate change for a new Blue Box recovery rate of 75% rather interesting.

Some 75% of what’s currently being recovered is paper of one kind or another, the same as it was back in 2003. Printed paper (newspapers, magazines and catalogues, telephone books and printing and writing paper) has the highest recovery rate overall (81%), followed by glass packaging (70%), paper packaging (67%) and steel packaging (63%).

Paper packaging is the only material grouping whose recovery rate has either stayed at the same level or improved in every category (boxboard up 9%), with corrugated boxes again the recovery leader overall at a hard-to-believe 98 per cent.

The glass recovery rate has dropped significantly from 2015 but the Blue Box laggards continue to be aluminum and plastics packaging at 38% and 29% recovery respectively. Plastics packaging recovery has gone down in almost every category and now represents 43% of what ends up going to disposal (on a weight basis). It’s also by far the most expensive material to recover (the net cost of recovering plastic film, for example, is listed at $2,646 a tonne).

Here are the latest (draft) numbers for 2016 with a comparison to 2015 and way back to 2003.

Estimated Recovery Rates 2016

Recycled content must be recognised in setting circular economy targets

The Ontario Ministry of Environment and Climate Change (MOECC) is in the process of considering what it calls specific material “management” targets for Ontario Blue Box recyclables such as paper, plastic, glass, steel and aluminum. It has already stated that it wants to see a collective 75% Blue Box diversion rate, up from the current 64 per cent.

But before we get into the details of specific targets for materials, there’s a major issue that we need to address that has everything to do with the circular economy that the minister and the province say they want to embrace. And that’s the issue of recycled content. The use of recycled content keeps materials flowing around in a circular loop for as long as possible.

Most corrugated boxes and boxboard cartons made in Ontario, for example, are already 100% recycled content: made from used boxes and paper collected from the back of factories and supermarkets, from offices and hospitals, and from curbside (Blue Box) collection and depots. The Ontario paper packaging industry achieved this milestone over many years with the expenditure of millions of dollars in new cleaning and screening equipment. Indeed, the mills of Southern Ontario led North America in incorporating residentially collected old boxboard into their recycling mix back in the 1990s. Today some 94% of Canadians can recycle it.

Ontario Blue Box chartThe industry’s environmental council, PPEC, has been very public in tracking and reporting on the industry’s progress towards a more circular economy. But now its members find themselves competing in the marketplace against virgin materials that have made minimal or little progress towards higher recycled content or “circularity.”

The plastics industry, for example, does not publish any numbers on average recycled content that we can find, and plastics’ overall Blue Box diversion rate is frankly poor (32%). Plastic film diversion has gone from 6% to 12% over the last 13 years, and polystyrene from 3% to 6% over the same period.

If we are going to have a level playing field between materials, we need public policy that encourages the greater use of recycled content and/or some recognition of recycled content achievement in the Blue Box funding formula and/or performance targets. We don’t see it at the moment, and yet paper packaging faces increasing competition from cheaper virgin plastics. How about the province set a target of 40% average recycled content for all packaging sold within Ontario by 2020 and 70% by 2027 ? That would put us on the path to a more circular economy and create a more level playing field at the same time.

The big “hurry up” on the Blue Box in case the Liberals lose

When Ontario released the final version of its waste strategy six months ago, dealing with the future financing of the province’s popular Blue Box program was at the backend of the queue. Sorting out the respective roles and responsibilities of municipalities and industry, not to mention the thorny issues of legal contracts and stranded assets, was considered so complicated and politically sensitive that the Ministry of Environment and Climate Change pencilled in 2023 (safely after the next provincial election) to complete its transition to 100% industry-pay and individual producer responsibility.

Now the ministry wants a new plan by February! What changed? The governing Liberals started to tank in the public opinion polls and industry and municipal leaders feared that not only wouldChris Ballard a great opportunity to move forward be lost, but also that an incoming government of different political stripes in 2018 would inevitably mean further delays and a possible fracturing of the current and welcome climate of common interest.

To their credit, municipal and industry leaders have been meeting over the last few months and cobbling together an accord, with the quiet blessing of ministry staff. In July, they asked then minister Glen Murray to buy into their plan to transfer the legal obligations and responsibilities of municipalities to collect and manage the Blue Box to industry stewards (brand holders and others with a commercial connection to the supply of printed paper and packaging into Ontario). This would be done through an amended Blue Box plan that would allow municipalities to opt in or out of providing collection services, and to have an opportunity to participate in processing Blue Box recyclables.

Newly appointed minister, Chris Ballard, leapt at this offering in August and has now directed the also new Resource Productivity and Recovery Authority and Stewardship Ontario to develop a proposal for an amended Blue Box Program Plan that will lead to individual producer responsibility down the road. But of course, he couldn’t resist adding a bit of direction in an addendum to his approval.

The amended plan shall (not may) “use means to discourage the use of materials that are difficult to recycle and have low recovery rates” (plastics be warned); increase the diversion target to 75% for the material supplied by stewards in the municipalities where Stewardship Ontario collects and manages the printed paper and packaging (the current Blue Box diversion rate is 64%); and “establish material-specific management targets.” We are not quite sure where material-specific “management” targets differ from material-specific “diversion” targets, but guess we’ll find out shortly.

If all goes well, Ontario will have a new Blue Box plan in February/March and the Liberals will be able to go to the polls saying they have saved the Blue Box (yet again)! Isn’t politics fun!