Thank you, Honourable Chair Lightbound and committee members.
Chemistry and plastics are Canada's third-largest manufacturing sector, adding $54 billion and $28 billion respectively to the Canadian economy. Eighty per cent of the sector's annual plastics production is export-oriented, with the majority destined for the United States.
Our industry is committed to a low-carbon circular economy for plastics. End-of-life plastics represent a lost $8-billion-per-year resource, which will grow to $11 billion by 2030. If recovered, this would strengthen our economy and our export potential while keeping plastics out of the environment. Not only does a circular economy ensure we are using our resources efficiently, but it further provides our industry with substantial greenhouse gas reduction opportunities, thus supporting Canada's net-zero goals.
An example is Quebec's success with polystyrene. Companies such as Pyrowave and Polystyvert use advanced recycling technologies to return post-use polystyrene to its molecular origins, making it indistinguishable from virgin plastic, but with a lower greenhouse gas footprint.
A further example is NOVA Chemicals' aspirations of net zero by 2050, 30% polyethylene sales from recycled content by 2030 and a 30% reduction in their scope 1 and 2 absolute CO2 emissions.
I'd be happy to share other examples of Canadian innovation driving the circular economy during the question period that follows my remarks.
You heard in your last committee meeting about the role that extended producer responsibility, or EPR, plays in a circular economy. EPR makes those that bring plastic products and packaging into the market responsible for their end-of-life management. Industry welcomes this responsibility and is working actively with provinces and territories to develop and implement regulations that will set ambitious recovery and recycling rates.
Although many provinces are in the early implementation stages, B.C. has a very successful EPR. Some highlights include that 99.3% of B.C. households in 183 communities had access to recycling services at no cost to taxpayers. Producers now fund the nearly $110-million recycling program. In just four years, while recycling has been stagnant across Canada, plastics recycling in British Columbia has increased from 42% to 55%, with 97% of all recovered plastics being processed within B.C., which creates new business opportunities. In 2021, greenhouse gas emissions for the program declined by 20.7%.
There is an important role for the federal government in creating the conditions for a successful low-carbon circular economy for plastics.
The first is investment in recycling infrastructure and innovation, as was reflected in the 2021 ministerial mandate letters for both Environment and Climate Change Canada and the industry department. Unfortunately, that fund has not materialized yet, but it is needed to accelerate innovation and investment in circularity as well as to deliver on other federal policy objectives.
The second area is creating incentives to incorporate recycled content into products. This can take many forms, but the one notably already under development is the setting of recycled content minimums for certain plastic products, which in turn relies on innovation and access to feedstocks to meet recycled content requirements. This, again, links back to EPR and investment.
The journey to a circular economy for plastics in Canada is well under way. We welcome this committee's assistance in framing the appropriate supporting roles of the federal government on this exciting and challenging journey.
I look forward to your questions.