October 2, 2019

Sarah Edwards: North America Director Eunomia Research & Consulting

RCA Conference

Economic Value of Alberta’s Recycling Sector

1. Eunomia2. Current Assessment

• Scope and Approach • Economic

3. Future Potential• Scope and Approach• Economic Potential

4. Challenges, Takeaways and Questions

Contents

Eunomia Research & Consulting

Manchester

Bristol London

UKGlasgow

Copenhagen, Denmark

Brussels, Belgium

New York, USA

Auckland, New Zealand

(Eunomia NZ)

Athens, Greece

Eunomia’s Locations

Eunomia's Service Areas

Waste & RecyclingService design and redesign, service optimization risk mitigation; in the vanguard of efforts to establish a circular economy; combining policy and operational expertise

Policy & StrategyDeveloping coherent, fully-costed and forward thinking policies and strategies on waste, energy, air pollution, climate change, marine pollution and the natural environment, at the European, national, regional and municipal level.

EvaluationEvaluation of projects and programmes to assess their effectiveness, and make proposals for changes; duel diligence for the clean-tech sector

Sustainable BusinessSupporting businesses to become more resource efficient, reducing impact on the environment whilst generating commercial benefits. Includes circular economy business models and approaches.

Green EconomyDevelopment of policies to support a green economy, spanning environmental fiscal reform, sector-specific policy and regulation, and the development of mechanisms to support the natural environment

ProcurementHelping the public sector deliver value from, and green, public procurement. Supporting businesses to improve life-cycle impacts and enhance resilience of supply chains

Eunomia’s Experience

California (2018)Legislative

review aimed and improving performance)

Ontario (2019)Cost benefit analysis if non-alcoholic DRS alongside curbside

CE in Furniture Sector,

Construction Sector (2017)

France: Impact of DRS on

Municipalities

Economic Impact Assessment of industrial

Sector from Implementing a Circular Economy

(2019)

DRS in Hong Kong

Turkey: DRS Design and Cost Benefit

EU Single Use Plastic Directive

EPR Modulation of Fees

Reducing Littering of Single Use

Plastics (2019)

Litter Pathways to the Aquatic Environment

Kenya: Plastic Packaging Flow

and Illegal Dumping

Alberta (2019)EPR Study

USA (2018)Toolkit for Carpet

EPR

Current: Scope and Approach

Economic Value

Contribution to GDPJobs, Indirect and Induced & Wages

Revenue for Material Investment

Tax Revenues

Programs Sectors

Residential C&DICI Stewardship

ServiceComponents

Collection TransportationSorting

Processing Remanufacturing

Data Data Data

Tonnes(by material

& sector)

Job Activity and Financials

(by activity, sector material and service

component role)

Investment (capital and/or asset depreciation)

Step 1: Gather and review existing publicly available data • Tonnes:

StatsCan• Jobs and

Employment: Eunomia previous studies, other economic reports

• Financial: Annual financial reports

Step 2: Identify service providers in the value chain• RCA

membership list• Contracted

service providers for stewardship programs

• Internet research

Step 3 Design survey tools to verify data gathered and to fill data gaps• Email survey • Telephone

interviews

Step 4: Complete surveys• Non-

Disclosure Agreement to guarantee confidentially and data protection

Step 5: Review and validate • Review

returns• Clarification

questions• Verification

emails

Current: Economic Value

Tonnes

831,500

1,150,100

628,800

403,200

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Statistics Canada 2016

Revised Estimate 2018

Residential (Excl. Deposit) 2018

ICI 2018

Tonnage of Material Collected for Recycling in Alberta

Beverage containers 95k tonnes, 2018

0.0 50,000.0 100,000.0 150,000.0 200,000.0 250,000.0

Stewardship - Beverage

Stewardship - Electronics

Stewardship - Tires

Stewardship - Paint

Stewardship - Used Oil

Residential Recycling

Residential Organics

ICI Recycling

ICI Organics

C&D

Tonnage Collected

Jobs

0 500 1,000 1,500 2,000 2,500

Stewardship - HHWCleanfarms

ICI OrganicsYard/Leaf Waste

Stewardship - PaintICI Scrap Metal

C&DResidential Organics

Stewardship - ElectronicsStewardship - Tires

Other Municipal RecyclingStewardship - Used Oil

ICI RecyclingResidential Recycling

Stewardship - Beverage

Direct Indirect Induced

Jobs per 1,000 Tonnes Collected

0 5 10 15 20 25 30 35 40

Stewardship - HHWCleanfarms

ICI OrganicsYard/Leaf Waste

Stewardship - PaintICI Scrap Metal

C&DResidential Organics

Stewardship - ElectronicsStewardship - Tires

Other Municipal RecyclingStewardship - Used Oil

ICI RecyclingResidential Recycling

Stewardship - Beverage

Direct Indirect Induced

0 5 10 15 20Stewardship - HHW

ICI Organics

Stewardship - Paint

C&D

Stewardship - Electronics

Other Municipal Recycling

ICI Recycling

Stewardship - Beverage

Collection Transportation Processing

Gross Value Added

• Income based approach to measuring the contribution of the sector to GDP

• Compensation to employees – wages• Gross operating surplus of a company

• Gross trading profit before taxes, depreciation, finance charges

• Taxes on production

• $700M resulting from 1.2M tonnes

Total Economic Benefits

• Wages - $370M• $80M value of the

secondary material• $60M in tax receipts

Future Potential: Approach

• Review waste composition data• Review other jurisdiction recycling programs for best

practice• CCME Phase 2 list of • Carryout gap analysis

Identify Recyclable

Material

• Use where applicable waste composition data to ascertain kg/capital

• Where composition not accurate, pro- rata data from other jurisdictions

Quantify Tonnage

• Interviews with recycling processors for additional items

• Literature review• Extrapolate data from existing recycling programs

Calculate Economic Benefits

Future Potential: Economic Value

Tonnes

29,900

173,000

495,000

155,000

300,000

17,700

7,000

16,900

13,300

7200

25,500

0 100,000 200,000 300,000 400,000 500,000 600,000

PPP Residential

Organics Residential

PPP ICI

Organics ICI

C&D Recycling

Electronics, Outdoor Power Equipment, Major …

Mattresses

Textiles

Carpet

Agricultural Plastics - Twine and Grain Bags

Furniture

Incremental Tonnes Diverted Through High Diversion Practices

Additional 1.2M tonnes in total potential

Jobs

220270

2,900120

900320

500150120

5220

5,790

0 1000 2000 3000 4000 5000 6000 7000

PPP Residential Organics Residential

PPP ICIOrganics ICI

C&D RecyclingElectronics, Outdoor Power Equipment, Major …

MattressesTextilesCarpet

Agricultural Plastics - Twine and Grain BagsFurniture

Total

Direct, Indirect and Induced Jobs (FTE)

Total Economic Potential

Current Future Potential

Challenges, Takeaways and Q’s

• Challenges• Availability• Consistency

• Takeaways• Biggest potential is ICI• Expand current electronics stewardship

program potential for programs for carpet and mattresses

• Q’s

Challenges

www.eunomia-inc.com@Eunomia_RandCSarah.Edwards@eunomia-inc.com