Thank you for inviting me today, Madam Chair and members of the committee.

My name is Allen Langdon. I'm the chief executive officer at Circular Materials.

Circular Materials is a national not-for-profit organization that supports producers across Canada in meeting their obligations under extended producer responsibility regulations for packaging and paper products. This is also known as EPR, which, as a policy approach, is recognized as one of the most effective mechanisms for improving recycling rates. Under this framework, the businesses that supply packaging and paper products are operationally and financially responsible for these materials over their life cycle.

Our mandate is to advance the circular economy and build efficient and effective recycling systems.

One exciting initiative we are developing is a first-of-its-kind material access program, which will return processed material back to producers directly for use as recycled content, new products and packaging. This initiative exemplifies a true circular economy, which keeps plastics looped in the system to be used again and again.

The federal government has set ambitious recycling targets to improve the recycling of plastics in Canada. Supporting investment in infrastructure and innovation nationally is critical for system changes that will effectively enable the recycling of plastic and other material. Most importantly, collaborating with stakeholders in all levels of government on plastic and material management is needed to reach Canada's zero plastic waste plan by 2030.

Our work with partners across the supply chain is helping to advance the circular economy for plastics. Our partnership with the Canada Plastics Pact, for example, helps to scale up investments in infrastructure and innovation.

Recently, with our partners Éco Entreprises Québec and Recycle BC, we issued a request for expressions of interest to identify innovative plastic sorting, mechanical and advanced recycling technologies. We will assess the commercial viability of these technologies to help reintegrate recycled plastics into manufacturing supply chains.

Industry is significantly investing in infrastructure and innovation, but we can't do it alone. A collaborative, cohesive strategy needs to be developed to de-risk investment in the recycling system. A 2019 report commissioned by Environment and Climate Change Canada estimated that $6.5 billion of capital investment is needed to expand the recycling system's capacity and achieve Canada's targets. There has been a decade of public and private sector underinvestment in recycling infrastructure in Canada. Incentives for the private sector are critical for driving innovation, accelerating the scale-up and transitioning to “designed for recyclability” solutions, equipment and technologies.

Supporting pilot and demonstration projects is also a key step towards commercial deployment of modern recycling technologies for sortation and mechanical and advanced recycling.

The Government of Canada has a crucial role to play in supporting the transformation of the country's recycling system. As such, Circular Materials proposes two recommendations for the federal government. One is to incentivize and de-risk private infrastructure investments in innovation and circular plastics projects through existing federal funding programs. The other is to expedite the development of a federal infrastructure and innovation fund that will scale up and commercialize technologies and solutions for the reuse and recycling of plastics.

By investing domestically in recycling infrastructure, Canada can create new, well-paying recycling and manufacturing jobs. Without this collaboration, our economy risks losing these high-value-add investments to other jurisdictions in the U.S. and Europe.

Studies have also shown that a circular economy for plastics and using recycled plastics in new products could result in an annual GHG emission savings of 1.8 megatonnes of carbon dioxide, which would provide further environmental benefits to the country.

Essentially, scaling up investment in infrastructure and innovative technologies is necessary to transition to a circular economy and meet ambitious environmental targets. This cannot happen overnight. A national strategy is needed to ensure the success of a sustainable and thriving future for value-adding plastic materials. Through our continued efforts, we look forward to working with governments and stakeholders to modernize Canada's recycling system. Collaboration is key to driving Canada's circular plastics economy and a more sustainable future.

Thank you for the time to speak. I look forward to answering any of your questions.

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