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Road to COP29: Our insights
The 28th Conference of the Parties on Climate Change (COP28) took place on November 30 - December 12 in Dubai.
Canada | Publication | November 11, 2024
The Government of Canada is creating a Federal Plastics Registry (the Registry) to help eliminate plastic waste by 2030. For more details on the Registry and its reporting requirements, check out our November 6 update.
In this update, we will focus on which plastics and plastic products are targeted by the reporting requirements.
The Registry requires detailed reporting on certain types of plastic resins and plastic products. These rules are outlined in a notice published in the Canada Gazette, Part I, on April 20, 2024, under the Canadian Environmental Protection Act (the Notice).
Schedule 1 of the Notice provides a list of resins involved in the manufacturing of plastics, and products containing such resins. This schedule is separated into four parts, based on the types of plastics to report. We discuss those parts below, along with the related reporting requirements. We encourage readers to examine the categories set out below thoroughly, in particular those listed in Part 4 of Schedule 1, as they encompass a much wider range of business activities than initially meets the eye.
We also note many terms mentioned in the Notice and in this update are defined in Schedule 2 of the Notice, and we invite readers to refer to that Schedule for additional clarity.
Part 1 sets out a list of 23 plastic resins identified according to the North American Product Classification System (NAPCS) Canada 2022 Version 1.0, including plastic resins such as polyethylene terephthalate (PET), acrylonitrile-butadiene-styrene (ABS), polyvinyl chloride (PVC), thermoplastic polyurethane (TPU), nylon, and more.
Businesses who manufacture or import such resins must report, for each calendar year, the type of resin, its source, the amount manufactured, imported and placed on the market in Canada, and how these amounts were calculated.
Part 2 sets out a list of four plastic resin sources, including virgin fossil-based and bio-based resins, and post-consumer or post-industrial recycled resins.
Businesses who manufacture or import such resins must report yearly on the type of resin, its source, the amount manufactured, imported and placed on the market in Canada, and how these amounts were calculated.
Part 3 sets out a list of rigid and flexible plastic packaging, filled and unfilled, in the following subcategories: beverage containers, food contact materials, packaging for hazardous materials and other packaging.
Businesses who are producers of plastic packaging must report yearly on the resins used in the manufacturing of the plastic packaging, the amount of plastic packaging destined for the residential waste stream, the industrial, commercial and institutional waste stream and the construction, demolition and renovation waste stream, that is manufactured in and imported into Canada, and placed on the market in Canada and in each province and territory, and how these amounts were calculated.
Businesses who are generators of packaging at an industrial, commercial or institutional facility must report yearly on the amount of plastic in all packaging generated at their premises and sent for diversion or final disposal, and how these amounts were calculated.
Businesses who are producers or service providers of plastics must report yearly on the amount of plastic collected at the end of life and sent for diversion and disposal, the amount of plastic subject to certain activities, whether imported into Canada or within Canada (including diversion for reuse, refurbishment, repair, remanufacturing, recycling, processing into chemicals, composting, incineration, or final disposal, such as incineration without energy recovery or landfill), and how these amounts were calculated.
It is important to note that Schedule 2 (Definitions) of the Notice includes a very broad definition of “producer,” which includes, in addition to manufacturers, brand owners and intellectual property owners, importers, retailers, and marketplace facilitators.
Part 4 sets out a lengthy and diverse list of plastic products, by category and subcategory. This list is extensive and significantly broadens the scope of the Registry, as mentioned above. Some businesses that may not appear to be producers of plastics at first glance may be targeted by Part 4.
Categories include electronic and electrical equipment, tires, transportation, construction, agriculture and horticulture, fishing and aquaculture, apparel and textiles, and single use or disposable products. We strongly recommend that readers consult Schedule 1, Part 4 of the Notice for the complete list of subcategories, and Schedule 2 of the Notice for the related definitions.
Businesses who are producers of products must report yearly, on the resins used in the manufacturing of the products, the amount of plastic product destined for the residential waste stream, the industrial, commercial and institutional waste stream and the construction, demolition and renovation waste stream, that is manufactured in and imported into Canada, and placed on the market in Canada in each province and territory, and how these amounts were calculated.
Businesses who are generators of plastic product waste at an industrial, commercial or institutional facility must report yearly on the amount of plastic in all products generated at their premises and sent for diversion or final disposal, and how these amounts were calculated.
Businesses who are producers or service providers of plastic products must report yearly on the amount of plastic collected at the end of life and sent for diversion and disposal, the amount of plastic subject to certain activities, whether imported into Canada or within Canada (including diversion for reuse, refurbishment, repair, remanufacturing, recycling, processing into chemicals, composting, incineration, or final disposal, such as incineration without energy recovery or landfill), and how these amounts were calculated.
Businesses involved in the production, importation, distribution, or management of the plastics and plastic products discussed above will need to comply with the new reporting requirements beginning in 2025. This will involve determining what the reporting obligations are throughout the supply chain and who is required to report, establishing systems to collect and report the required data accurately, engaging with producer responsibility organizations that can assist with data collection and reporting, and monitoring regulatory developments and further guidance and updates from the Government of Canada. Environment and Climate Change Canada is also drafting a guidance document on the Registry to assist industry in preparing reports.
Check out our November 6 update for an overview of the Registry and its requirements, and keep an eye out for our next update, which will further examine the phased introduction of those reporting requirements.
Publication
The 28th Conference of the Parties on Climate Change (COP28) took place on November 30 - December 12 in Dubai.
Publication
Miranda Cole, Julien Haverals and Emma Clarke of our Brussels/ London offices are the authors of a chapter on procedural issues in merger control that has been published in the third edition of the Global Competition Review’s The Guide to Life Sciences. This covers a number of significant procedural developments that have affected merger review of life sciences transactions.
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