A review of U.S. and Canada EPR policy changes
Effects on the recycling industry could be seen as soon as 2026
The impact of Extended Producer Responsibility (EPR) legislation is more profound than anticipated because of the entities involved. As the U.S. and Canada gradually roll out policy changes, we are likely to see actual effects on the recycling industry as soon as 2026. Here is a review and outlook of what the next few months hold.
What to expect in 2025 and 2026
Seven U.S. states (Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington) have enacted EPR laws with registration and reporting scheduled for later this year and over the next two years. Connecticut and Nebraska have proposed HB 5019 and LB36 for safe battery collection and recycling. EPR legislation in the remaining states is being assessed.
In Canada, new EPR changes, especially for packaging materials, are expected by the end of 2025, with Alberta, New Brunswick, Saskatchewan, Ontario, and the Yukon at the forefront.
Why we need EPR laws
EPR policies are here to stay, given that policy proposals have received extensive support from industry stakeholders and governments, both regional and federal. Associations such as The Recycling Partnership have lauded the push for change as these laws encourage better accountability from manufacturers and packagers. The laws enable a shift of the financial responsibility to brand owners to manage a material's life cycle effectively.
The Recycling Partnership says that EPR could be vital in transforming residential curbside collection systems and improving recycling rates. According to 2023-2024 data from the American Forest & Paper Association, StatCan, and The Recycling Partnership, overall paper and cardboard recycling rates have been consistent at 35-65 percent.
Moreover, residential generation volumes have been relatively flat at about 40 percent over the last two decades. In a separate report, The Recycling Partnership emphasizes that effective EPR changes could lift statewide paper recycling by 20-50 percent or even up to three times. Participation from residential communities would also improve as access to recycling systems could be more seamless.
Landmark rulings
National and regional government agencies have rolled out several recent changes. However, a few stand out and are indicated to be more effective in bringing about the much-needed overhaul.
California's Department of Resources, Recycling, and Recovery (CalRecycle) expanded its covered materials categories (CMC) list to include coated paper and liquid packaging. The list, under EPR, became effective in July 2024. It covers corrugated, paper, cardboard, and molded fibre that also have plastic components. This means that cartons or paper cups with plastic coatings are deemed recyclable.
According to the Department's recent findings, nearly 70 percent of California's residential communities can now recycle Aseptic and Gable Top cartons, with 68 percent of the state's counties served by material recovery facilities that accept and sort these materials.
In Ontario, the Ministry of the Environment, Conservation, and Parks amended the province's Blue Box Program to maintain existing recycling services and reduce costs. According to a June 2025 decision, the Blue Box regulation will allow for current recovery targets of paper, metals, rigid plastics, and glass. Any increases are deferred until 2032 instead of 2026, as proposed earlier.
Navigating foreseeable challenges
Concerns regarding consistency and expected recycling targets have been primary for industry stakeholders. EPR laws differ by state and province, and with that, legal definitions tend to vary based on regional legislation. Each region defines covered or recyclable materials based on demographics, which means a material that is exempt in one region may be included or regulated in another.
Another challenge is that a higher anticipated compliance fee could increase the cost of packaged goods. However, according to The Recycling Partnership, that cost will be integrated into the business instead of being passed on to consumers.
Finally, recycling targets need to be clearly defined, although these may vary between regions. A minimum percentage cap will become mandatory as EPR laws widen.
This article originally appeared in the November/December issue of Recycling Product News.
