The expansion of programs which require manufacturers to pay to recycle the products they create is accelerating innovation in a variety of sectors, the CEO of a B.C.-based recycling non-profit says.

David Lawes, who leads Victoria-headquartered Interchange Recycling, is overseeing the expansion of its motor oil and antifreeze program to Yukon and several U.S. states. Growth of government-mandated extended producer responsibility (EPR) policies are behind this and other initiatives, he told Sustainable Biz Canada in an interview.

“What they’re trying to do is send a price signal back to manufacturers to design the product differently, or reduce the product, or create reuse systems, or make it more recyclable.”

By forcing companies to foot the bill for managing the future of their plastics, paper and metals that wind up in recycling bins, Lawes said these programs will result in less waste, more jobs and increasingly novel ways of building a circular economy.

How Interchange loops oil, antifreeze and containers

Formerly named the British Columbia Used Oil Management Association, Interchange collects motor oil and antifreeze, containers for both, and oil filters from businesses and individuals at no charge. Created by the provincial government in 2003, it is funded by the petroleum industry (companies such as Shell, Chevron, BP, Imperial Oil, etc.) and has members on its board from the manufacturing, automotive and retail industries, local governments and the public.

The purpose, Lawes said, is to incentivize the market to collect the accepted materials and close the loop for the circular economy – a more sustainable way of using resources and goods by promoting reuse and recycling.

B.C. is a trailblazer in EPR, according to Circular Materials, having launched the first full EPR program in Canada in 2014.

Once received at its recycling centres, Interchange processes and cleans motor oil at refineries to be reused or make lubricating oil. Approximately three quarters of the oil can be refined into a new product.

Almost 100 per cent of the antifreeze can be recycled and is then sold to B.C. customers.

Oil filters are recycled to make reinforcing steel, while the containers are transformed into oil containers, drainage tiles and parking curbs.

Interchange claims to reprocess just under 50 million litres of oil and three million litres of antifreeze, six million oil filters and 1.7 million kilograms of plastic containers per year.

Its existence has increased recycling rates as heightened regulations lead to more collection, Lawes said, though he could not provide any figures.

How EPR boosts the economy

Aside from reducing the need for more materials, which consumes natural resources, pollutes the environment and produces more waste, EPR systems are an economic and technological boon, Lawes said.

More recycling infrastructure means more jobs and companies to address the rising demand. EPR programs fund the circular economy and encourage innovations in the field, Lawes noted.

For example, bulk refill stations where drivers can top up on antifreeze without needing to purchase a new container are emerging at Petro-Canada and Canadian Tire locations, he said.

The Toronto-based Circular Innovation Council has mirrored this approach. Inventive startups are emerging to tackle the problem of waste, and circularity supports local businesses and supply chains, the non-profit’s executive director Jo-Anne St. Godard told Sustainable Biz Canada in 2022.

Growing north and south

Greater interest in EPR programs, which are regulated by provincial and territorial governments in Canada, has led to Interchange extending its service to Yukon. The territorial government established regulations which must be enforced by 2025, and chose Interchange to administer the program, Lawes said.

The first materials covered by Yukon’s EPR will be paper products and packaging, as well as hazardous and special products such as batteries, paint, waste oil and antifreeze.

A larger opportunity is emerging in the U.S. With states such as Oregon, California, Maine adding EPR laws, Interchange is forming the Interchange 360 brand. It is being set up to start in Colorado and Vermont.

“There wasn’t a domestic option, because it’s brand new in the U.S,” he said, when asked why Interchange is expanding beyond Canada. “They liked what they saw and they like the way we run our program,” he said of the U.S. interest in utilizing Interchange’s service.

Lawes anticipates more development in EPR policies. He sees “continuous improvement” with the programs nationally, including expansion into textile and mattress recycling.