Environmental Regulations Continue to Grow

Posted by on Aug 11, 2023 in Blog | 0 comments

In our February 8, 2023 blog, we discussed the growing environmental regulatory and enforcement activity in Canada.  Based on recent activity, this regulatory pressure is continuing to mount for businesses.

Increased Regulation for Chemical Industry

In a July 27, 2023 article in Coatings World, J. Gary LeRoux, President and CEO of Canadian Paint and Coatings Association outlined the increased regulation of the Chemical, Adhesive, Sealants, and Elastomer (CASE) industry.

In the article, Mr. LeRoux provides details of proposed increased regulation of the CASE industry, including the following:

  • Lower VOC limits for Architectural and Industrial Maintenance coatings
  • Concerns about biocide restrictions for paint preservatives
  • New regulations concerning the class of per- and polyfluoroalkyl substances (PFAS)
  • Amendments to the Canadian Environmental Protection Act
  • 850 new substances prioritized for assessment in the Contaminant Management Plan 4

Mr. LeRoux goes on to express additional concerns including the proposed use of recycled content in plastic packaging, containers, and equipment.

You can read his article in Coatings World.

Text "Regulation"

Environmental regulatory pressures continue to grow across Canada. (Image by Gerd Altmann from Pixabay).

Additional Regulation of Plastics

In June 2022, the Government of Canada announced the ban of certain single-use plastics.

Earlier this year, the Government announced the “Recycled content and labelling rules for plastics: Regulatory Framework Paper.”  Comments on this proposal closed on May 18, 2023.  It is anticipated that draft regulations will be released this fall that would create the “Federal Plastics Registry.”

While further regulation of plastics is anticipated, the existing plastic regulations are being challenged in court.

According to a blog by the law firm, Dentons, “The proposed Federal Plastics Registry seeks to dovetail with existing provincial extended producer responsibility (EPR) requirements by establishing a national database on end-of-life management of products and packaging and by requiring producers to report on all major categories of plastics products.”

The blog by Dentons includes additional details on the proposed regulations, including anticipated timelines.

Opposition to the Regulation of Plastic

In 2022, The Fraser Institute issued a paper, “Canada’s Wasteful Plan to Regulate Plastic Waste.”  In this report, they wrote “At the end of 2021, the government of Canada launched a regulatory campaign against plastic waste—Zero-Plastic Waste 2030 (ZPW2030)—that will, in the estimation of its own Regulatory Impact Assessment, impose costs on Canadian society exceeding projected benefits.  This fails the first, and arguably most important, test of sound public policy.”

They also state, “As the government’s Regulatory Impact Analysis shows, the monetized costs of the proposed single-use plastics regulations—CA$1.3 billion—will outstrip the monetized benefits—CA$619 million—by nearly 2:1.”

Pending OSFI Climate Risk Management

In our April 14, 2023 blog, we reported about the looming OSFI (Office of Superintendent of Financial Institutions) B-15 Guideline that will require federally-regulated institutions in Canada’s financial sector to report on their climate-related risks.  This will start to be phased in beginning at the end of fiscal year 2024.

The OSFI requirements will include Scope 3 emissions – financed, facilitated, and insured emissions.  This will mean customers of banks and insurance companies will also be required to report such activity as employee commuting, business travel, and much more.

For additional background on the climate risk management program also see, “Canada’s Step Forward on Climate Risk Management and Disclosure: New Guidelines for Federally Regulated Financial Institutions.”

We will continue to monitor and report on the rapidly-developing environmental regulatory issues affecting the regulated community.  In the meantime, if you need assistance with an environmental matter, contact Christopher Pare’, P.Geo., Q.P. at 519-948-7300, Ext. 114.

Dragun Corporation does not use artificial intelligence in drafting our blogs or any other material.

This blog was drafted by Alan Hahn.  Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management.  He has worked in environmental management for 45 years.  He has written hundreds of blogs and articles.  His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.

This blog was reviewed by Christopher Paré, P.Geo.  Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office.  Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning.  Chris is a frequent speaker, author, and expert witness.  See Chris’ bio.

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