Plastics Sustainability within a Circular Economy Canadian Plastic Industry Association December 7, 2017

Presentation Outline Circular Economy Policy Framework Resource Productivity and Recovery Authority Amended Blue Box Program Minister’s direction Consultation process Next steps Key Issues for Plastics Industry

Circular Economy Policy Framework Strategy for a Waste-Free Ontario – Building the Circular Economy Released on March 1, 2016 Four objectives: Enhance provincial direction and oversight Enable efficient and effective recovery systems Increase waste reduction and improve resource productivity Create conditions for sustainable end-markets

Circular Economy: Objectives Individual producer responsibility: each producer is individually responsible including for its own performance against objectives All participants strive to: Minimize use of raw materials Maximize useful life of materials through resource recovery Minimize waste generated at the end-of-life of products and packaging

Legislative Framework Resource Recovery and Circular Economy Act, 2016 New regime where producers are accountable for their products and packaging, recovering resources and reducing waste Waste Diversion Transition Act, 2016 Continues existing diversion programs until wind-up as directed by the Minister Provides for winding up the existing programs and IFOs

Resource Productivity and Recovery Authority Established November 30, 2016 as the authority responsible for: Overseeing existing programs until wound up Approving wind up plans developed by IFOs as directed by Minister Overseeing implementation of the approved wind up plans Developing and operating a Registry To accommodate registration and reporting by obligated parties To support monitoring compliance To support assessing progress towards a circular economy Compliance and enforcement

Resource Productivity and Recovery Authority Mission: To promote and enforce accountability for the reduction and management of packaging and products Vision: A waste-free Ontario where all resources are reused and recycled Corporate structure: non-crown, not-for-profit corporation Governance: independent, skills-based, non-stakeholder board Accountable: to the Minister of the Environment and Climate Change Self-financing: through fees levied on parties obligated to register and cost recovery from industry funding organizations and industry stewardship organizations

Amending the Blue Box Program August 14, 2017: Minister directed Authority and Stewardship Ontario to develop a proposed amended Blue Box Program Plan Stewards would assume full responsibility, via Stewardship Ontario, for collection and management of paper products and packaging (PPP) Would replace current arrangement where municipalities are responsible with stewards sharing costs 50:50 Stewardship Ontario and Authority to work collaboratively with stewards, municipalities and other affected stakeholders Authority is responsible to review the proposed amended BBPP for compliance with the WDTA and consistency with the Minister’s direction and, if approved, submit the plan to the Minister by February 15, 2018

Minister’s Direction for Amended BBPP Seamless transition for residents Support reduction, reuse, recycling and re-integration of PPP Continuous improvement of environmental outcomes Effective economic methods to incent behaviour changes (including waste reduction) Drive innovation through collaboration and competition Avoid stranded assets to extent possible Enable transitioned municipalities to choose whether to Act on behalf of Stewardship Ontario to procure and administer contracted collection services or have Stewardship Ontario procure and administer Participate in Stewardship Ontario’s procurement process for post-collection services Address in-kind contribution from newspaper industry at no cost to municipalities

Consultation Process Consultation is focused on: Stewards Local governments First Nations communities Waste management industry ENGOs Other stakeholder organizations Collaborative approach using consultation sessions and meetings Seeking stakeholder input throughout process to test concepts, options, approaches while developing the amended BBPP

Summary of Activities to Date August 14, 2017 – Minister’s letter to Authority and Stewardship Ontario September 2017 – Authority and Stewardship Ontario develop a Stakeholder and Indigenous Peoples Engagement and Communications Plan October/November 2017 – Consultations Stewardship Ontario presents on aspects of amended BBPP proposal Authority monitors the consultation process and engages with Stewardship Ontario on proposal issues via weekly meetings

Next Steps December 14 and 15 – RPRA and Stewardship Ontario Boards consider draft amended BBPP for purposes of consultation December 22, 2017 – Stewardship Ontario posts a draft amended BBPP proposal for next phase of consultation process January 2018 – Consultation meetings at which Stewardship Ontario will present draft amended BBPP proposal; comments submitted will inform preparation of final amended BBPP proposal for submission to RPRA February 8, 2018 – RPRA Board considers the amended BBPP proposal; if approved, submits it to the Minister for consideration prior to February 15

Implications of Amended BBPP for Plastics Minister directed that the proposal for an amended BBPP incorporate: Methods to facilitate the reduction of waste generated such as Increasing reusability and recyclability Reducing or eliminating any impact a material may have on the recyclability of other materials Reducing the amount of waste generated at the end of a packaging’s life Reducing or eliminating the use of any substance that compromises the material's reusability or recyclability Increasing use of recovered resources in the making of the material Means to discourage use of materials that are difficult to recycle and have low recovery rates Mechanisms to identify and address issues associated with problematic materials

Solutions Required for Key Plastics Issues Challenges with export markets putting pressure on North American capacity and quality requirements for recovered plastics Effect of commingled collection on quality of PE film and PS foam Shift from recyclable single resins to non-recyclable laminates Negatively affecting diversion performance of plastic packaging Increasing pressure to resolve technical barriers to laminate recycling Creating demand by incorporating recycled content in packaging Better systems to collect and utilize plastics to avoid environmental impact Public perception that plastic is an environmental problem fueled by coverage of plastics in oceans and garbage gyres

A request to industry: Plastics present a unique set of challenges and opportunities for transition to a circular economy Industry expertise will be critical to designing and implementing effective policy reform RPRA is looking to learn from and collaborate with experts and stakeholders in supporting delivery on the Strategy for a Waste Free Ontario

Contact RPRA Frank Denton, CEO Geoff Rathbone, Director of Transition fdenton@rpra.ca Geoff Rathbone, Director of Transition grathbone@rpra.ca Wilson Lee, Director of Communications and Stakeholder Relations wlee@rpra.ca Mary Cummins, Program Lead mcummins@rpra.ca GR to note that we want to meet with stakeholders, on this or any subject. We are open, transparent and willing to learn from our stakeholders.