Frequently asked questions for producers

Curbside Recycling is in transition from the Compensation Plan (CP) to an Extended Producer Responsibility (EPR) system.

• The CP is based on an Annual Schedule of Contributions, which is a retroactive payment to compensate municipalities for costs incurred in the year preceding the year of declaration
• EPR involves funding for the year following the declaration (prospective), to enable the PRO to pay “real-time” invoices for the system service providers

For 2025 and 2026, the funding of the two systems will overlap, with producers having to pay at the same time for costs incurred in the past (CP) and for the current year’s costs (EPR).

To help producers avoid the burden of paying for two full years in one, the Quebec government has provided for a staggered payment schedule for the last year of the CP, until 2026. The 2025 Schedule of Contributions will be the last Schedule of Contributions.

Éco Entreprises Québec forecasts that the costs producers will have to pay are as follows:

• In 2024: $308 million
• In 2025: $653 million
• In 2026: $659 million

Why ?

• Increased collection and transport costs;
• Increased investment to upgrade sorting centres (MRFs);
• 100% Producer funding (including awareness programs, etc.)

The financial transition between the Compensation Plan (CP) and Extended Producer Responsibility (EPR) runs from 2024 to 2026.

This decision comes from the Quebec government, not our organization. Since we need to transition from one system to another, there is an overlap in the funding of the two systems between 2024 and 2026.

Since 2005 under the Compensation Plan (CP), and with the principle of Extended Producer Responsibility (EPR) in place since 2022, businesses marketing packaged products, containers, and printed paper are collectively responsible under the Regulation for ensuring the financing of the curbside recycling system, which includes the transition from the CP to EPR.

We know that producers are concerned about this financial transition. Although certain factors, such as inflation and the economic situation, are beyond our control, ÉEQ has several levers to mitigate the increase in curbside recycling costs and, ultimately, stabilize them:

• Bundling contracts with municipalities to achieve economies of scale
• Staggering and moderating the investment needed to upgrade the curbside recycling system
• Optimize the marketing of materials by pooling sorted volumes
• Identify new obligated producers to mitigate the impact of increased costs per producer by sharing these costs with a larger pool of producers

At this time, ÉEQ has estimates for the overall costs of curbside recycling and is not in a position to provide a precise estimate of the impact of this transition for each producer, as the amount varies according to the type of material marketed by each producer. However, it is still possible to make some very high-level projections by comparing your annual contribution with ÉEQ’s estimate of the change in costs per year to be borne by producers, which is as follows:

• 2024 : $308 M
• 2025 : $667 M
• 2026 : $622 M

This would double your costs between 2024 and 2025. However, it is very important to bear in mind that a quick pro rata can give an idea of how much you will have to pay, but is by no means a representative estimate of the final invoice.

Based on current projections, producers can expect to see a stabilization of curbside recycling in the early 2030s, once the roll-out of all our new responsibilities has been completed.

Several new responsibilities and charges for ÉEQ, including the gradual extension of service to the IC&I, will be deployed between 2025 and 2030.

Cost increases are to be expected until 2030, as regulatory responsibilities are added, after which we should see some stabilization and then maturity of the system.

To achieve economies of scale, we must first have a solid system for curbside recycling: investments must be made to enable sorting centres to achieve the desired levels of performance.

Despite this, a period of stabilization is expected in the early 2030s and it is expected that reductions in costs per ton will start to materialize from 2034 onwards.

Producers will receive 3 types of invoices during this period, namely:

• Three invoices for the contribution provided for the 2025 Schedule of Contribution, under the Compensation Plan (CP)
• A special PFP as per the ÉEQ policies, under EPR, only applicable for the 2023 and 2024 reports
• A series of 4 annual PFP quarterly invoices: as per the ÉEQ policies, under EPR, from the 1st quarter of 2025

The 2024 Special PFP invoices are issued once the 2024 report is submitted.

Invoices for the 2025 annual PFP will be issued in the autumn of 2024. These will be payable in 4 instalments from the beginning of 2025. Applicable rates will be based on reported quantities submitted in your 2024 report.

The contribution under the Schedule of Contribution will cease to exist with the end of the Compensation Plan (CP). The final payment for the 2025 Schedule of Contribution will be made in 2026.

The Annual PFP will be the only invoicing remaining once the transition is complete. It will be payable in 4 instalments (only 1 for producers eligible for a flat fee) each quarter.

Thus, in 2026, producers will report their data for the 2025 calendar year and, in autumn 2026, once the rates have been set, they will receive their annual PFP invoicing (divided in 4 quarterly instalments, payable in 2027). The amounts paid will be used to fund the curbside recycling system in 2027