Science and Research Committee on Oct. 1st, 2024

[Jo-Anne St. Godard]

We work very closely with Recyc-Québec. We're very aligned with and support all of the provincial-based circular economy activities that it's showing and leading there. It's an impressive record. I can't speak for all Canadians, but any public opinion polls that we take, Canadians feel we need to do more. They have absolutely stated that they know industry has a role to play, including those that are brand holders and sellers, but other producers and manufacturers as well.

We have many good examples that we could leverage from the Quebec situation. Leadership is being shown right across the country. There are provincial governments that are transitioning to full producer responsibility where it used to be cost-shared. There are new provinces that are coming online, namely, Nova Scotia, New Brunswick, Alberta, and an expansion in B.C. Right now, there's a lot of activity as it relates to producer responsibility.

I want to call out the leadership of the municipal sectors. Using their bylaws, some of them have banned the use and purchase of certain products and materials. They have made their suppliers and vendors more responsible through their procurement requirements. They are using their power of buying collectively and individually. Of course, their leadership is through their bylaws. Municipalities have been a tremendous convenor in terms of coalescing and educating their residents as well. There's tremendous leadership, and, really, Quebec is at the helm of that.

[The Chair, Liberal, Valerie Bradford]

We'll now turn to MP Ashton for two and a half minutes, please.

[Niki Ashton, NDP, Churchill—Keewatinook Aski, MB]

Thank you very much. My question is for Ms. St. Godard.

Once more, really focusing on the question of disincentives to plastic recycling, could you talk to us a bit about what disincentives prevent a higher percentage of plastics from being recycled?

Are these disincentives technical? Are they economic? Are they regulatory? Could you share some thoughts on that front?

[Jo-Anne St. Godard]

Defining disincentives could be different, depending on the vantage point. With the introduction of producer responsibility, one of its objectives was in fact to disincentivize or incent, depending on which side of the coin you're looking at, producers and manufacturers to look at better designed goods, be it swapping out materials for a better choice or maybe refill or reuse. Then sort of, lastly, it was about really understanding the costs of the system. Before there was producer responsibility, industry had no idea how much municipalities and taxpayers were actually spending on blue boxes.

There are opportunities for us to look at costing pollution. A great example of that is charging for plastic bags at the point of sale. I was involved many moons ago, when the provincial Government of Ontario was contemplating banning plastic bags. There was, obviously, a reaction by the retail sector, as we would expect, and the plastic manufacturers of plastic bags. In lieu of banning them from sale, they worked with the province, and us as a convenor in that discussion, to look at other mechanisms.

What they committed to was actually reducing the supply of plastic bags to consumers by half at a certain time frame. They exceeded that time frame, and they exceeded that amount. Many of them actually priced a plastic bag and offered a reusable one, which we now know is really quite successful. In fact, it carved the runway for the federal government, the Government of Canada, to come in and effectively ban them as a single-use item.

Disincentives and pricing pollution can be a very effective tool to incent the kind of behaviour you want and not to incent the behaviour you don't, and that's at every level.

[The Chair, Liberal, Valerie Bradford]

That's our time.

That brings us to the end of our first panel.

Thank you to the witnesses, Krista Scaldwell and Jo-Anne St. Godard, for your testimonies and participation in the committee's study of innovation, science and research in recycling plastics. Please see the clerk for any questions. You may also submit additional information through the clerk.

We'll suspend briefly to allow our witnesses to leave, and we'll resume with our second panel.

[The Chair, Liberal, Valerie Bradford]

I call the meeting back to order.

Our in-person witnesses haven't appeared yet. In the interest of time, I think we'll start with our virtual witnesses so that we can get under way.

Welcome back. For those participating by video conference, click on the microphone icon to activate your mic. Please mute yourself when you're not speaking. For interpretation for those on Zoom, you have the choice at the bottom of your screen of floor, English or French.

It's now my pleasure to welcome, by video conference from Coalia, Éric Leclair, plastic engineering director. Also appearing by video conference, we have Michelle Saunders, vice-president of sustainability, from Food, Health & Consumer Products of Canada.

Up to five minutes will be given for opening remarks, after which we'll proceed with rounds of questions.

We'll begin with Mr. Leclair. I invite you to make an opening statement for up to five minutes.

[Éric Leclair, Plastic Engineering Director, COALIA]

Good afternoon, everyone.

My name is Éric Leclair, and I am the director of plastic processing at Coalia.

Coalia is a college centre for technology transfer in Quebec, and the only centre specializing in plastics. We are a technology access centre and the only one working in the plastic manufacturing sector in all of Canada. Coalia is a non-profit organization, located at the Cégep de Thetford, in Quebec, and has about 35 employees.

We are active in a variety of sectors, and plastics recycling is an important activity for our organization. We do work for the entire supply chain, whether it be municipal sorting centres, recyclers, users, process managers who mould new parts, or industries that generate plastic waste.

We find the best ways to recycle polymers. We have a wide range of recycling transformation tools. We have good labs specialized in identifying characteristics. We also collaborate with various universities, as well as other organizations such as Recyc-Québec and Éco Entreprises Québec. At the Canadian level, we conduct activities with the Circular Plastics Taskforce.

Having said that, I have no idea why I was called here today.

[The Chair, Liberal, Valerie Bradford]

That's the end of your opening statement. Okay. Thank you.

We will now turn to Michelle Saunders, vice-president of sustainability, for her opening statement of five minutes.

[Michelle Saunders, Vice-President, Sustainability, Food, Health & Consumer Products of Canada]

Thank you very much, Chair and members of the committee. I appreciate the opportunity to speak today on the critical issue of plastics recycling.

Food, Health & Consumer Products of Canada, or FHCP, is the leading national trade association representing manufacturers of food, beverages, consumer goods and health products. Members are Canadian-owned and international companies of all sizes, manufacturing both company-owned, branded products and private label or store brand products. Together, they produce the vast majority of packaged goods sold in every aisle of Canada's grocery stores and pharmacies.

Sustainability is a key priority for FHCP, and our efforts on plastics, plastics recycling and extended producer responsibility, or EPR, impact all of our members.

In 2019, FHCP endorsed the Ellen MacArthur Foundation's vision for a new plastics economy. This focuses on eliminating plastic pollution through better product design and innovation; collecting and recycling, reusing or composting the plastics in the market; and reducing the reliance on virgin, petroleum-based plastic resins to reduce greenhouse gas emissions.

Our work with plastics recycling is threefold.

First, FHCP supports our members in packaging innovations. Our members are largely transitioning their packaging portfolios to align with the golden design rules for plastic packaging, which are a set of common principles to improve design for recyclability.

Second, FHCP and our members are actively engaged in discussions with the federal government on matters related to plastics. Each of the policies considered by Environment and Climate Change Canada—be they the federal plastics registry or policies like recycled content mandates for certain product categories and labelling requirements for recyclability and compostability—directly links to provincially mandated EPR.

Third, FHCP directly engages with provincial governments, regulatory bodies and producer organizations, like Circular Materials and Éco Entreprises Québec, to ensure that provincial policy will result in the development and implementation of effective and efficient recycling programs.

EPR has been in effect in various forms in Canada since 2004, expanding across the country and transitioning all programs to full EPR. This means that industry is assuming the full responsibility for the financing and delivery of province-wide curbside recycling programs. By 2027, 97% of Canadians will live in a jurisdiction with full EPR.

Over the past 20 years, Canadian producers have contributed more than $6.3 billion. In 2024, producer costs across Canada exceeded $1 billion.

We support EPR as the only way to achieve scale and ensure appropriate outcomes for materials, but the rapid pace of massive cost escalation is unsustainable. We need governments, including the federal government, to make strategic capital investments in recycling capacity and new technologies.

Research commissioned by the federal government indicates a $6.5-billion technology gap to achieve a circular economy. This cannot be borne by producers alone. Plastic is a resource. We must ensure that it is collected and does not enter the environment, but not all plastics are the same. Mechanical recycling is a good solution to process rigid plastics, but we have extremely limited outcomes in Canada with flexible plastics and need strategic investments to ensure that we have sufficient and appropriate processing capacity and end markets for this material. We need targets that are ambitious but achievable and reflect the material that is in the market.

Lastly, we need engagement throughout the federal government, including Environment and Climate Change Canada, Health Canada, Agriculture and Agri-Food Canada, Innovation, Science and Economic Development and the Canada Infrastructure Bank. We must work together to scale and accelerate a circular economy for plastics as a priority for the government, for industry and for the environment.

Thank you.

[The Chair, Liberal, Valerie Bradford]

Thank you very much.

It's now my pleasure to welcome our final two witnesses. From BioLabMate Composite Inc., we have Dr. Sarika Kumari, chief executive officer and co-founder, and Sanjay Dubey, chief technology officer and co-founder.

Welcome to our committee. You can make an opening statement between the two of you of up to five minutes.

[Dr. Sarika Kumari, Chief Executive Officer and Co-Founder, BioLabMate Composite Inc.]

Thank you.

Good evening, honourable members of the committee. I am Sarika Kumari, CEO of BioLabMate. It is an honour to speak with you today on the subject of innovation, science and research in recycling plastics, with a particular emphasis on the critical issue of plastic waste generated in research labs and medical facilities.

Globally, we generate approximately 300 million tonnes of plastic waste annually, with a significant portion attributed to the medical and research sector. The COVID-19 pandemic has intensified this challenge, increasing reliance on PPE, testing kits and other disposable plastic items. Research labs alone contribute around 5.5 million tonnes of plastic waste each year, a number equivalent to the total plastic waste output of some small countries.

Single-use plastic in research labs remains a significant but frequently overlooked problem. For instance, a single lab can produce around 44,600 pieces of single-use plastic monthly, depending on the size of the lab, costing in Canadian dollars between $14,000 and $18,000 and weighing up to 60 kilograms or 80 kilograms. When you scale across entire university and research institutes, the magnitude of the problem becomes clear.

At BioLabMate we conducted extensive market research, engaging with over 100 potential customers in research and health care settings. Through this process, we identified bioplastics as a viable and sustainable solution. Our focus is on utilizing locally available renewable resources, specifically seaweed, to create bioplastic that can replace traditional single-use plastic items seamlessly.

While recycling has long been promoted as a solution to plastic waste, it is not enough to address the scale of the issue. Recycling is often hindered by several challenges—for example, contamination. Plastics mixed with food and other waste are difficult to recycle effectively. There are infrastructure gaps. Canada's recycling infrastructure is insufficient for the handling of all recyclable materials. There's also downcycling. Plastics often degrade in quality after recycling, making them unsuitable for reuse in precision environments like research labs.

To address the challenges, we recommend stricter regulations on what types of plastics can be recycled, investment in advanced recycling technologies, and public education, particularly in the research lab, to improve recycling practices and reduce contamination.

At BioLabMate we view bioplastics as a crucial part of the solution to plastic waste in research labs. Unlike conventional plastics derived from fossil fuels, bioplastics are made from such renewable resources as seaweed. These bioplastics are designed to be biodegradable or compostable, significantly reducing their environmental impact. Our seaweed-based bioplastics are ideal for replacing single-use items in labs, such as tips, plates and tubes, thereby cutting both waste and carbon emissions.

Seaweed as the primary material for our bioplastics offers a host of benefits. For example, on environmental impact, seaweed is a rapidly renewable resource that absorbs CO2, helping to mitigate climate change. It grows without fresh water, fertilizers or pesticides, making it a sustainable alternative to land-based crops. In terms of the economic opportunity, seaweed farming provides a new source of revenue for coastal communities, especially in Atlantic Canada, offering job creation and economic diversification.

Despite the potential of bioplastics, there are hurdles to overcome. For example, there's the cost. Currently, bioplastics are more expensive than traditional plastics, but we anticipate that costs will decrease with growing demand and increased production. In terms of infrastructure, the limited number of industrial composting facilities in Canada hinders the proper degradation of these bioplastics. There's also R and D support. Continued research is essential to improve the performance and cost-effectiveness of bioplastics.

We urge the government to provide grants and subsidies for companies like BioLabMate that are developing sustainable alternatives; mandate the use of bioplastics in high-risk sectors, particularly health care and research; support research and development to accelerate bioplastics adoption; and expand composting infrastructure to ensure that bioplastics are processed correctly.

Recycling alone cannot solve Canada's plastic waste crisis. A combined approach of improved recycling practices and the adoption of bioplastics is essential. BioLabMate’s seaweed-based bioplastics offer a sustainable and scalable alternative, particularly for the research and medical sectors. With government support, Canada can lead the transition to a circular economy, significantly reducing both plastic waste and its environmental impact.

Thank you for your time. I look forward to your questions.

[The Chair, Liberal, Valerie Bradford]

Thank you, witnesses, for your opening remarks.

We'll now open the floor to questions. I would ask the members to please be sure to indicate to whom their questions are directed.

We'll start the questioning with MP Viersen for six minutes.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Thank you, Madam Chair.

Thank you to our witnesses. My first questions are for the BioLabMate Composite folks.

You mentioned that seaweed bioplastic is more expensive than traditional plastic. How much more expensive is it? What are we looking at?

[Dr. Sarika Kumari]

This is our product, and we are doing a patent on it. We don't know exactly how much it would cost if we compare it to the fossil fuel plastic. However, it's not that costly. The polymer has two grades. One is when you work with the research lab grade, and one is when it makes it to the commercial base. Seaweed biopellets are near to the same as you would count research-grade pellets.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

We learned at the last meeting that people use the term “bioplastic” in two ways: One meaning it's biodegradable, and one meaning that it's sourced from a plant, basically.

[Dr. Sarika Kumari]

Yes, bioplastic is.... It's very common now, saying “bioplastic, bioplastic”. However, bioplastic is not bioplastic until it is biodegradable and biocompostable, like it's home compostable. We at BioLabMate are making the biopellets that are home compostable. It should be compostable. It should not need any industrial set-up to compost it in a big area.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

That would break it down similar to a seaweed residue.

[Dr. Sarika Kumari]

Yes. As we know, people have used seaweed in their backyards to grow their plants. Yes, it's going to go in the soil, and it's actually going to go as a fertilizer in the soil.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Okay. That's the goal.

[Dr. Sarika Kumari]

That's the goal.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

How would an aggressive pursuit of recycled plastic maybe hamper your...? If we pursue recycled plastic versus bioplastic, what would the impact be on that?

[Dr. Sarika Kumari]

I feel that recycling is one option, but it is not the very best option. Any which way, what we are doing is, again, grinding those plastics, and it's going to stay in there. As bioplastic, we are are making it, and it's going to the end use. Then, it's just going into nature again. It's not going to hamper—

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

Thank you.

This is for the Food, Health & Consumer Products of Canada. We talked with the previous witnesses about the standardization of containers and the reuse of containers. I know, just in my own life, that the 20-litre water jugs, for example, are major plastic items that the private sector has totally developed a reuse circular economy for. I also noticed that where I come from, in the honey capital of Canada, no matter which honey farm I go to, it seems that the honey ends up in the exact same container, just with a different name on it.

What kind of work is being done with that, and how will that impact, say, the recycle versus reuse and the standardization of these products?

[Michelle Saunders]

Thank you for that question.

I think the standardization of packaging for a broad spectrum of products is a pretty hefty ask. I think, within product categories, certainly we are seeing efforts to standardize certain product packaging. However, producers need the opportunity to define and to determine the best material that suits their particular product, whether it is food product, beverage, consumer goods or a medical device or health product. They need to make sure that their consumer can afford it and will accept it.

There are a lot of considerations that go into the packaging decisions. We hear the conversation on standardization. I would just tell you that we are working with a common set of principles to improve recyclability by design.

[Arnold Viersen, Conservative, Peace River—Westlock, AB]

You mentioned the Infrastructure Bank. Do you have any examples of the Canada Infrastructure Bank actually lending any money in the pursuit of recycled plastic or reused plastic?