Canada Drafts Rules to Increase PCR Content and Improve Recycling of Plastic Packaging
Brand owners should pay close attention to the proposed Canadian legislation, which may necessitate changes to plastic packaging and labeling.
To further its goal of zero plastic waste, Canada has published a regulatory framework paper (the "Paper") outlining proposed recycled-content requirements and labeling rules for the recyclability and compostability of plastic packaging and single-use plastics (SUPs). The Paper provides a detailed overview of the regulatory approach the Canadian government is proposing for the draft regulations, which are currently under development.
If the proposed regulations become law, they will require the regulated parties (mostly brand owners) to use up to 60% post-consumer recycled (PCR) content in rigid plastic containers by 2030 and up to 50% PCR in flexible packaging, depending on film thickness. Additionally, "recyclable" labeling on plastic packaging will require an 80% threshold for collection, sorting, and reprocessing.
(Unless otherwise stated, statistics, figures, and data included in this article are based on the findings included within the Paper.)
Tackling Packaging Waste
In 2018, plastic packaging and SUPs contributed over 35% of all plastics in the Canadian market, reports the Paper. Due to their short lifespan (typically less than one year), these materials comprise over 50% of all plastic waste generated in Canada. Less than 14% of plastic packaging and SUPs are recycled. Thus, most of these materials end up in landfills or become environmental pollutants after only one use.
Building a circular economy for plastics requires higher collection rates of all plastics while maintaining efficient sorting and reprocessing yields for difficult-to-recycle materials like plastic films and flexible pouches.
Rigid and Flexible Packaging
The recycled-content mandates (as required by the Paper), which establish minimum PCR resin percentages between 30% and 60% by 2030, apply to rigid and flexible packaging. (See Table 1 for a timeline of minimum PCR percentages for package type and product category.) These minimum percent PCR requirements boost demand and expand the market for recycled plastics.
By: Robert Swientek
Date: April 2, 2024
Table 1: Schedule of Required Minimum Annual Percentage of Recycled Content
| Packaging Category | Product Category | 2025 | 2026-2027 | 2028-2029 | 2030 |
| Rigid | Beverage Bottles* | Report only | 20% | 40% | 60% |
| Rigid | Rigid PET/HDPE | Report only | 20% | 30% | 60% |
| Rigid | Other Resin Types | Report only | Report only | 30% | 60% |
| Rigid | Special Categories | Report only | Report only | Report only | 40% |
| Flexible** | Waste Bags | Report only | 10% | Subject to below targets for flexibles | Subject to below targets for flexibles |
| Flexible** | Flexible ≥ 35 μm thickness | Report only | Report only | 30% | 50% |
| Flexible** | Flexible 20-35 μm thickness | Report only | Report only | 20% | 40% |
| Flexible** | Flexible ≤ 20 μm thickness | Report only | Report only | 15% | 35% |
| Flexible** | Special Categories | Report only | Report only | Report only | 30% |
* Other types of beverage containers would be captured elsewhere in the product schedule, according to their format. For example, drink pouches would be subject to targets for flexible packaging.
** Recycled content targets for flexible packaging would be differentiated based on thickness of the packaging material. This approach recognizes the technical barriers to using recycled content in thin flexible packaging, and the potential for higher targets in thicker films that use more plastic. There would be three thickness ranges: 1) thin: less than 20 µm (lowest targets indicated in Schedule); 2) medium: 20-35 µm; and 3) thick: over 35 µm (highest targets in Schedule).
To demonstrate compliance with the recycled-content requirements, the regulated parties (i.e., brand owners) must initially utilize a mass requirement formula and substantiate the results via documentation and verification schemes. As stated by the Paper, starting in 2028, companies must use an accredited third-party certification system for recycled content.
Rigid packaging refers to PET and HDPE containers, beverage bottles, other rigid packaging (e.g., PP, PS, and EPS), and special categories (e.g., cosmetics, pest control products, and consumer products containing a hazardous ingredient). Flexible packaging includes waste bags, films with different thicknesses, and special categories (same product applications as rigid special categories).
Pursuant to Section 3 of the Paper, several packaging sub-categories are exempt from the recycled-content rules. These exceptions include food-contact packaging, durable packaging for long-term storage, packaging that acts as an integral component of the product and its use (e.g., printer cartridge cases, lighters, and earphone cases that act as a charging port), and compostable plastic packaging (subject to the labeling requirements in the regulations).
Moreover, the proposed regulations would exempt any company from the recycled-content requirements with a gross revenue of under $5,000,000 or placed less than 10 tons of plastic packaging on the Canadian market in the prior year.
Recyclability and Labeling
The regulatory framework proposes new rules for meeting recyclability claims. To be marketed as recyclable, the consumer-facing plastic packaging and SUPs must meet an 80% threshold for collection, sorting, and reprocessing. This benchmark means that at least 80% of the population in a province or territory must have access to collection systems that will accept the packaging for recycling.
Furthermore, facilities must sort 80% (minimum) of the collected materials bales and send them to North American re-processors. Lastly, the re-processors must transform at least 80% of the bales into feedstocks that can displace the primary or virgin resin used to make the item.
Plastic packaging that meets all three 80% thresholds must be labeled as "recyclable": a chasing arrows symbol with a checkmark in the center. Plastic packaging that does not meet these thresholds must be labeled as "non recyclable": a chasing arrows symbol with an X in the center or "collected for recycling": a chasing arrows symbol with three breaks in the second arrow in the loop and a checkmark in the center. (See Table 2 displaying the three recyclability symbols with their descriptions.)
Table 2: Proposed Canadian Recyclability Labels and Descriptions
| Symbol | Description |
| | This means that something is recyclable in the areas where it is sold to the public. You can put this item in the recycling bin, and it will be taken to a facility that is capable of recycling it into something new. |
| | This means that something is non recyclable in the areas where it is sold to the public. You should keep this item out of recycling bins, because it may be difficult or impossible to recycle in existing systems. |
| | This means that something is collected for recycling in the areas where it is sold to the public. You can put this item in the recycling bin, but be aware that it may not be recycled. Recycling systems across Canada are changing to recycle more plastics, but they need time to improve. By 2030, this symbol will no longer be allowed, and all plastic packaging and single-use plastics will either be labeled as recyclable or non recyclable. |
Along with the three recyclability symbols, plastic packaging and SUPs must include a QR code that links to an open-access website with information on the item's recyclability.
The proposed rules prohibit using resin identification codes with the chasing arrows symbol.
Pursuant to the Paper, in order to be labeled compostable, the product must be certified by an accredited third party to an acceptable standard specification for compostable plastics. These standards include ASTM D6400, ASTM D6868, and ISO 17088(2021). In addition, the product must undergo in-field testing at a composting facility in Canada, demonstrating that the item attains at least 90% disintegration during the actual composting cycle for that facility.
Compostable products must be labeled as "non recyclable" and cannot use the terms "degradable," "biodegradable," and "home" or "backyard" compostable.
Like implementing the recycled-content rules, the recyclability and labeling regulations would phase in from 2026 to 2030. (See Table 3 for a schedule of labeling rules.)
Table 3: Schedule of Labeling Rules
| Product Category | Plastic Type | 2026 | 2028 | 2030 |
| Single-Use Plastics | All PET or HDPE | Mandatory labeling rules apply (including plastics labeled as biodegradable, degradable, compostable) | Mandatory labeling rules apply (including plastics labeled as biodegradable, degradable, compostable) | Mandatory labeling rules apply (including plastics labeled as biodegradable, degradable, compostable) The "collected for recycling" recyclability category and corresponding labels would no longer be permitted |
| Single-Use Plastics | All Rigid Plastics | Voluntary labeling rules apply | Mandatory labeling rules apply | Mandatory labeling rules apply The "collected for recycling" recyclability category and corresponding labels would no longer be permitted |
| Single-Use Plastics | All Flexible Plastics | Voluntary labeling rules apply | Voluntary labeling rules apply | Mandatory labeling rules apply The "collected for recycling" recyclability category and corresponding labels would no longer be permitted |
| Packaging | All PET or HDPE | Mandatory labeling rules apply (including plastics labeled as biodegradable, degradable, compostable) | Mandatory labeling rules apply (including plastics labeled as biodegradable, degradable, compostable) | Mandatory labeling rules apply (including plastics labeled as biodegradable, degradable, compostable) The "collected for recycling" recyclability category and corresponding labels would no longer be permitted |
| Packaging | All Rigid Plastics | Voluntary labeling rules apply | Mandatory labeling rules apply | Mandatory labeling rules apply The "collected for recycling" recyclability category and corresponding labels would no longer be permitted |
| Packaging | All Flexible Plastics | Voluntary labeling rules apply | Voluntary labeling rules apply | Mandatory labeling rules apply The "collected for recycling" recyclability category and corresponding labels would no longer be permitted |
The information contained in this article is intended for general information purposes only and is based on information available as of the initial date of publication. No representation is made that the information or references are complete or remain current. This article is not a substitute for review of current applicable government regulations, industry standards, or other standards specific to your business and/or activities and should not be construed as legal advice or opinion. Readers with specific questions should refer to the applicable standards or consult with an attorney. It is the customer’s responsibility to determine whether its filled product is subject to any applicable government regulations and to ensure compliance with such regulations.