The circular economy for plastics is a complex and rapidly evolving field from a legal perspective. Its implementation and ultimate success will result from close collaboration between legislators and industry. This article provides an overview of some of the most relevant regulations and legislative provisions. The goal is to present and organize the information in a way that offers both understanding and a comprehensive view of what can be referred to as plastic circularity laws.
- Competition Act
On June 20, the Canadian government added two new provisions to the Competition Act (the “Act”), effectively prohibiting greenwashing and reversing the burden of proof onto the alleged offender.
The first addition, under section 74.01(1)(b1), essentially codifies the Competition Bureau’s usual practice, but explicitly for environmental claims. It was already illegal to promote a product for commercial purposes in a misleading way or to make claims about a product attribute without sufficient and proper evidence. In 2022, Keurig Canada Inc. was required to pay a $3 million penalty because its K-Cups were not recyclable outside Quebec and British Columbia. The Bureau concluded that the company’s recyclability claims were misleading.
The second provision, under section 74.01(1)(b2), prohibits commercial claims related to environmental protection or restoration without supporting evidence based on internationally recognized methods. In practical terms, terms like “net zero,” “carbon neutrality,” or claims suggesting a “green image” are now illegal unless backed by third-party certification. Even future environmental commitments may be considered greenwashing if they are deemed aspirational rather than based on concrete actions.
The Act has real teeth. These provisions reverse the burden of proof, meaning companies must now objectively prove their claims. It is therefore essential to avoid misleading statements, support claims with solid evidence, avoid exaggeration, and favor clear, precise communication. Otherwise, any member of the public can file a complaint, and the company may be presumed guilty of false representation.
- Labeling
One of the most problematic issues with plastic products concerns recyclability labeling. It is therefore risky to display the recycling symbol on plastic packaging without additional clarification.
But what is recyclable? The Canadian government has not yet clearly defined this. According to official publications, the use of the “chasing arrows” symbol would only be allowed when packaging is recyclable at scale. Environment and Climate Change Canada proposes the 80/80/80 rule:
- 80% of households must have access to collection systems
- 80% of items must be sorted
- 80% of collected material must be recycled into new plastic products
To date, no material—including paper, glass, or aluminum—meets these strict criteria.
Meanwhile, California is moving toward a regulation where only PET and HDPE bottles and rigid containers are considered recyclable. All other plastics, including films, would be deemed non-recyclable.
This situation opens the door to private labeling initiatives such as How2Recycle, suggesting a coexistence of public and private systems. Public systems are funded through extended producer responsibility (EPR), while private ones must be self-funded.
- Extended Producer Responsibility (EPR)
RECYC-QUÉBEC is a government corporation under the Ministry of the Environment. It designates organizations like Éco Entreprises Québec (ÉEQ), which help producers comply with regulations under the Environment Quality Act.
In practice, this system transfers the net cost of recovering and recycling plastic waste from municipalities to producers. ÉEQ collects fees from companies, transfers funds to RECYC-QUÉBEC, which then redistributes them to municipalities.
Here, “producer” generally refers to brand owners placing products on the Quebec market—not raw material producers or processors unless they market finished plastic products.
Each producer must register with ÉEQ and pay fees based on the quantity of materials placed on the market. Fees vary depending on management costs and resale value. For example:
- Flexible packaging: ~ $0.91/kg
- Rigid packaging: $0.27–$0.45/kg (Quebec)
- British Columbia rates are higher
- Plastic Taxes
EPR should not be confused with plastic taxes implemented in countries like the United Kingdom and Spain.
In the UK, the Plastic Packaging Tax applies to packaging with less than 30% recycled content, at £210.82 per tonne. Spain plans a tax of €0.45/kg on non-recyclable packaging, excluding certified compostable materials.
- Eco-Design
While EPR shifts waste management costs, plastic taxes aim to reduce virgin plastic use. This is one form of eco-design.
In Quebec, eco-design is integrated into EPR through financial incentives. Companies incorporating recycled content can receive deductions of up to $30,000 annually.
- Federal Plastics Registry
Any circular economy strategy depends on data tracking. The federal government has introduced a plastics registry to quantify material flows.
Three reporting methods are proposed:
- Component-based method: precise weight calculation of each plastic type
- Average weight method: based on product averages
- Fixed-factor method: using agreed-upon estimates
These methods help quantify production, import, and waste volumes.
- Bans
There are two types of bans:
- Statutory bans (e.g., plastic straws, PFAS substances)
- Voluntary bans (e.g., commitments under the Canadian Plastics Pact)
- Collaboration in Food Packaging
In April 2023, the federal government proposed that:
- 75% of fresh produce be sold in bulk by 2026
- All plastic food packaging be reusable, recyclable, or compostable by 2028
Industry raised concerns about food safety and inflation risks. Health Canada committed to revising the approach and developing broader regulations by March 2027.
The success of the plastics circular economy relies on collaboration between government, industry, and stakeholders. Unrealistic targets without proper means can undermine credibility and slow progress. Overall, the legislative framework is coherent and well-designed, but further clarification is needed to unlock its full potential.
By Roger Tambay, Special Collaboration*
Roger Tambay, B.Sc., MBA, B.C.L., LL.B., is a lawyer and Director of Sustainable Development at the Society of Plastics Engineers (SPE) – Quebec Section (roger.tambay@icloud.com)
This article has not undergone thorough linguistic review. It may therefore contain some spelling and syntax errors. Rest assured that the nature of the content and information presented is not affected.
