Recycling Product News Logo

Building a national recycling policy key to sustainable development

Canada’s current laws, regulations and tax systems restrict potential

In recent years, governments around the world have been attempting to strengthen their economies while minimizing their environmental impact. The recycling industry is a key component to achieving this goal of sustainable development, but Canada’s current laws, regulations and tax systems restrict the industry from achieving its full potential.

CARI believes this incongruity could be remedied by establishing a national recycling policy that includes procurement policies, separates recyclable materials from waste and promotes fair tax treatment of goods made from secondary resources.

How would a national recycling policy support sustainable development? As the federal government continues to categorize recycling as an “activity” of the waste sector, secondary commodities are subject to laws and regulations from federal, provincial and municipal levels of governments that are designed to control waste. Waste is environmentally and monetarily expensive to manage. According to the 2014 report prepared for the Canadian Council of Ministers of Environment (CCME) – “State of Waste Management in Canada” – local governments spent $2.9 billion on waste management in 2010, including $425 million in tipping fees. Costs had increased by 12 percent from 2008, particularly for landfill maintenance, which rose 60 percent. The report claims this indicates a “missed opportunity to extract value from materials in the waste stream.”

“One can only imagine how much more could be accomplished if recycling were positively reinforced through supportive legislation” Tracy Shaw

A national recycling policy that differentiates the waste and recycling industries and separates recyclable material from waste would provide better industry- specific data and increase research and development into technological advancements.

Promoting sustainable development requires reducing the amount of waste material and decreasing the use of raw materials by incorporating secondary resources in the manufacturing of consumer goods. Some consumers argue there are insufficient products made of recycled content available or that those products that are available are too expensive. Manufacturers argue there is little demand to substantiate the investment required to develop recycled products.

Increasing the demand for recycled products through government and private procurement would encourage more research and innovation by manufacturers to design products for recycling. As demand for recycled products increases, so would production, thereby giving rise to the traditional savings of economies of scale. And as demand for recycled products is generated, more technological development would increase yield and efficiency, thereby reducing costs.

To further encourage the use of recycled material at the production level, Canada must offer fair tax treatment of goods made from secondary resources. A 1995 study released by the CCME found that the majority of virgin materials are taxed less than recycled material. In particular, the cost of production of fabricated metals was 4.5 percent higher for recycled products than for products fabricated from primary metals. This cost difference provides a disincentive to the manufacturing of goods from recycled material. If the government were to equalize tax treatment for secondary commodities, no doubt their use in production would increase.

Policy instruments can be effective incentives to improve recovery of recyclable materials and encourage design for recycling. Policies that enhance recycling by creating new and larger markets and avoid unnecessary regulations or restrictions would promote sustainable development.

One can only imagine how much more could be accomplished if recycling were positively reinforced through supportive legislation.

Company info

Related Articles