Canada to pioneer business waste penalty scheme

Canadian politicians are formulating plans to make manufacturers and retailers pay for the waste they generate, raising the prospect of charges based on the amount of goods and packaging a company produces.

Environmental ministers from the country's federal, provincial and territorial governments have requested comment on two new initiatives; one which calls for an action plan on extended producer responsibility and the second which takes aim at sustainable packaging.

The latest statistics show that in 2006 Canadians generated almost 1,100 kg of municipal solid waste per person, up eight per cent from 2004.

With Canada lagging behind its peer nations when it comes to curtailing waste, the politicians want to make businesses responsible for handling the recovery of everything from compact fluorescent light bulbs to electronics and electrical products to household hazardous waste to automotive products and the packaging and printed materials that come with those products.

If adopted the initiatives would represent one of the most wide-reaching " polluter pays" regimes anywhere in the world and could provide a huge incentive for firms to reduce their packaging levels.

The ministers envisage giving businesses six years to comply and they want to give them a further two years before the plan would cover construction and demolition materials, furniture, textiles and carpets, and appliances, especially those made with ozone-depleting substances.

The environmental ministers expect some opposition to the plan from industry, particularly given the bleak economic outlook.

From a corporate perspective, Proctor and Gamble said that while extended producer responsibility programmes may be efficient for electronics there are negative consequences when dealing with household product packaging.

For instance, the programmes are costly and fees are inevitably passed on to consumers in the price of products so they reduce consumer purchasing power, said P&G in a statement on public policy issues. The company also argues that enforced takeback schemes can discourage the use of functionally useful packages, such as more sanitary beverage containers, because they are more difficult to recycle.

However, the Packaging Association of Canada was more sanguine at the prospect of new legislation. "In a performance-oriented industry where success depends on continuous improvement, the push towards an ever-decreasing impact of packaging on the environment is ingrained," it said.