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Producers are legally required to make a financial contribution for the containers, packaging, and printed paper they put on the market each year. These payments are an essential part of the curbside recycling system.

How is the curbside recycling system funded?

The introduction of extended producer responsibility (EPR) has brought about a new method of financial participation.

The new producer financial participation (PFP) model

What is it?

Under the PFP model, producers must report every year the quantities of materials they marketed the previous year. Their contributions are then used to finance the following year’s operating costs in real time, through quarterly payments. For example, in 2024, a producer would report the quantities of materials they marketed in 2023, and then pay their calculated PFP contribution in 2025.

The three stages of producer financial participation
  1. Collect data on the containers, packaging, and printed paper you market.
  2. File a report.
  3. Pay the PFP calculated from the reported quantities.

Who sets the terms?

As the organization in charge of Quebec’s curbside recycling system, we draw up the annual fee schedules and collect the payments. The PFP is included in the membership contract you sign with us as a producer.

Where does the money go?

We manage it on your behalf to pay for the following:

  • Municipal curbside collection operations
  • Sorting activities, including equipment upgrades
  • Information, awareness, and education activities, such as our Bin Impact initiative
  • The gradual expansion of curbside collection services to multi-unit buildings and remote communities
  • Future obligations in terms of outdoor public spaces, institutions, businesses, and industrial sectors (IC&I)
What is it?

This retroactive financing method came into effect in 2005. Payments made under the plan are used to compensate municipalities for the curbside recycling costs incurred the year prior to the reporting year. For example, contributions made in 2024 compensate for costs incurred in 2023.

The Schedule of Contributions sets out the rate, or fee, per kilogram of material put on the market. It is used to calculate the total contribution producers must pay.

Who sets the terms?

We develop the fee structure and terms in collaboration with producers, then submit a draft Schedule to the Quebec government for approval. Once approved, the Schedule is implemented for the reporting year.

We collect your contributions and pay them to RECYC-QUÉBEC, a provincial Crown corporation, on your behalf. RECYC-QUÉBEC is responsible for distributing the funds to municipalities.

A necessary transition period

The compensation plan and the Producer Financial Participation Model will overlap until 2026. In the meantime, the amounts payable will therefore include both past and present costs.

There are several measures in place to facilitate this transition:

  • Special PFP rates apply for the 2023 and 2024 reporting years.
  • There will be a single annual report for both financing methods.
  • The final payment under the compensation plan will take place in multiple installments to spread out the costs: 60% of the amount will be payable in 2025 (in two installments), and the remaining 40% will be payable in 2026.

Three questions to ask yourself. One simple way to get the answers.
 

  1. Do you know how much you usually pay for curbside recycling in Quebec?
  2. Did you know that this amount is expected to double by 2025? The reason is not only the overlap in financing methods, but also the factors below:
    • As of 2025, producers will be responsible for 100% of the funding for the curbside recycling system.
    • Transport and sorting costs will increase significantly once contracts are renewed.
    • There are plans to build new sorting centres as well as to upgrade existing facilities.
  3. Do you know who to turn to within your organization to help minimize the costs for your business?

If it takes you more than 10 seconds to answer these questions, email us and we’ll be happy to help.


How will billing work during this period?

You will receive three types of invoices:

Invoice type

Time frame

Annual contribution invoice
Provided for in the Schedule under the compensation plan
Issued after you submit your report
Special PFP invoice
Provided for under Éco Entreprises Québec policies
Issued only after submission of your 2023 and 2024 reports
Four quarterly invoices for the annual PFP
Provided for under Éco Entreprises Québec policies
Issued annually from fall 2024 onwards

Important note: These invoices are also payable by businesses filing their first report. They will be required to file reports retroactively.

What happens in 2026, once the transition is complete?

All that will remain is the annual PFP, payable in quarterly installments of 25% each. You will receive one invoice per installment, or four invoices per year.

*Businesses eligible for a flat fee will receive a single invoice, and payment will be made in a single installment.

Do you have any questions or concerns about the transition?

See our FAQ for answers.

What factors affect the amount producers are required to pay?

  1. The cost of curbside recycling: The higher the costs of collecting, transporting, sorting, conditioning, and recycling recovered materials, the higher the rates associated with those materials.
  2. The number of producers that make a contribution each year: The more producers there are, the lower the rates for the same total costs.
  3. The type and quantity of marketed materials: Each material has an associated rate, which you can find in our Materials Guide.
  4. Ecomodulation: You can reduce your contribution amount by using post-consumer recycled materials and committing to ecodesign principles. Visit our Ecomodulation page for more information.

 

 

See also