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@[email protected]