Ontario’s Ford government is moving to roll back key components of its upcoming recycling reforms after industry leaders warned of skyrocketing costs under the new producer-pay model. The proposed changes would delay and dilute several planned targets, undermining a system originally designed to shift responsibility from taxpayers to manufacturers.
The province began transitioning in 2023 to a system where producers are accountable for recycling their packaging, paper, and single-use items. That shift was set to ramp up in 2026 with stricter targets and expanded collection areas. But now, citing unsustainable costs and operational chaos, the government is proposing to delay those deadlines to 2031, remove several collection requirements entirely, and allow incineration of non-recyclables to count toward recycling quotas.
Environmental groups have blasted the changes, accusing the government of caving to industry pressure at the expense of sustainability. “The original regulations were meant to create incentives for better packaging design and less waste,” said Karen Wirsig of Environmental Defence. “Instead, we’re seeing the province pull back just as progress was within reach.”
Under the new proposal, targets like recycling 80% of paper and 50% of rigid plastic—previously set to become enforceable next year—will now be postponed. Even more controversially, up to 15% of producers’ targets may be met by burning non-recyclable materials. Requirements to expand recycling in schools, long-term care homes, and public spaces would also be scrapped.
Flexible plastics—such as food wraps and pouches—will see their 25% recycling target slashed to just 5%, and not until 2031. Officials say this reflects current diversion rates, though data on most material streams remain unavailable due to the ongoing system transition.
The Retail Council of Canada says costs to producers have already surged 350% in three years, with projections of another near-doubling by 2026 if changes aren’t made. “This system is fragmented, inefficient, and lacks real accountability,” said Michael Zabaneh, the Council’s vice-president of sustainability. “We’re in the dark on actual recycling rates, and the administrative complexity is driving costs through the roof.”
The council argues for a single producer responsibility organization to streamline operations and increase transparency. Currently, four such organizations operate in Ontario, adding layers of logistical and financial burden.
Producers like the Canadian Beverage Association say they support sustainability goals and need access to recycled materials to support circular economy efforts. “We want the plastic and aluminum back,” said association president Krista Scaldwell. “We’re committed to recycling, but the system needs to be both transparent and financially viable.”
Environment Minister Todd McCarthy defended the proposed rollback, stating the government is trying to strike a balance between environmental goals and economic realities. “The costs were a big deal,” McCarthy said. “We want to improve the system, not break it.”
Public comments on the regulatory changes are open until July 21, but environmental advocates warn that if passed, the rollback could set Ontario’s recycling efforts back by years—both in credibility and performance.