EPR isn’t a Panacea: Our Made-in-Alberta Solution for Beverage Containers Outperforms EPR, and Then Some

As Alberta takes its first big step to benefit from Extended Producer Responsibility (EPR), this is the time to remember that not every public policy issue benefits from the same solution.

Still to come this fall session is legislation that; if supported, will enable Alberta to apply EPR as a policy tool to enhance recycling systems.

While the term is EPR confusing, the concept is straightforward. EPR makes manufacturers legally responsible to pay for and manage the systems that collect and recycle the products and packaging they sell into the marketplace.

For some materials such as packaging and paper products, single-use plastics, and household and special waste, EPR will bring Alberta a lot of benefits. Right now, municipalities and their taxpayers bear the burden and risk of managing these materials. ‘Manage’ is a key word because municipalities do not have a lot of control over the recyclability of these materials, their value on commodity markets or influence to find end markets that will recycle them. As a result, a lot of these materials go to landfill. EPR will change that.

For other materials (notably beverage containers), the exciting concept of EPR is a red herring. It sounds great until you learn Alberta already has all the very best EPR has to offer embedded in its “partial EPR” approach to beverage container recycling, and some unique additions that help get even better results.

How can this be?

Alberta’s beverage container management system:

• is a world-class Deposit Return System, which is complementary to EPR;

• relies on funds collected from consumers: both unredeemed deposits from the Deposit Return System and Container Recycling Fees and revenues from material sales to end markets, which is similar to EPR; and

• is managed by manufacturers, which is similar to EPR.

In addition, Alberta’s system also:

• has a common collection system which puts Albertans first by ensuring they can recycle and receive a deposit return for the same types of beverage containers (via Bottle Depots) across the province;

• requires manufacturers to pay Bottle Depots to collect and sort beverage containers into clean material streams, which makes them desirable to end markets for recycling;

• has a regulator who oversees fair negotiations and business practices between manufacturers and Bottle Depots; and

• has a regulator with a stakeholder board that works as partners to ensure a high performance recycling system.

The result is that Alberta collects the largest number of different types of beverage containers in all of Canada. It also has the highest overall collection and recycling rates for beverage containers, is the lowest cost beverage container system to operate, and has a system where, with the guidance of the system regulator, manufacturers and Bottle Depots are enabled to work in partnership to put the interests of Albertans first. Alberta’s results are important. They are results that aren’t being achieved by EPR for beverage containers anywhere in Canada.

British Columbia moved its Deposit Return System for beverage containers to EPR in 2004. While B.C. manages a variety of materials through EPR, it is, quite notably, the only jurisdiction in Canada with EPR for beverage containers. In the 17 years, B.C. has had to demonstrate to Canadians that EPR improves recycling outcomes for beverage containers - it has not. Its collection rates remain stagnant and lag sorely behind Alberta. In 2020, B.C.’s collection rate was 76%. In the same period, Alberta’s was 82%.

Obviously, environmental policy should enhance environmental results. Otherwise, what is the benefit?

In the case of EPR, the argument might be it removes the cost burden from taxpayers and puts it on manufacturers. In Alberta’s case, the beverage container management system is funded through the same means as EPR in B.C. and is the lowest cost system in Canada.

The other argument could be EPR gives manufacturers more freedom to innovate and find highly effective and lower-cost means of collecting beverage containers for recycling. This argument only holds weight if manufacturers demonstrate they are innovating and getting better results.

Albertans have always taken pride in made-in-Alberta solutions, and our beverage container management system should be no different. We have a world-class policy approach that has long embraced the benefits of EPR and consistently delivered a high environmental, economic, and social ROI to Albertans. EPR has a place in Alberta, but only for underperforming recycling programs. At the same time, concrete policy action is also necessary to ensure our beverage container management system remains for the long-term.