GFL Environmental (GFL) has created the Resource Recovery Alliance (RRA) in response to the Government of Ontario's extended producer responsibility (EPR) regulation requiring product and packaging producers to operate and fully finance Ontario's Blue Box program.
RRA will become a producer responsibility organization (PRO) under the new legislation and will be vertically integrated within GFL's service offerings. GFL also announced that RRA has agreed to acquire Canadian Stewardship Services Alliance (CSSA).
"Ontario has ushered in a new wave of extended producer responsibility in Canada, bringing increased responsibilities for producers, along with new opportunities to innovate and drive greater efficiencies and environmental outcomes," said Patrick Dovigi, GFL founder and CEO. "RRA will combine GFL's extensive international footprint and depth of experience in North America's resource recovery sector with CSSA's leadership in compliance and administration of recycling programs across Canada. CSSA's in-depth understanding of producers and the new and much more rigorous regulatory needs makes them an ideal partner for GFL in the creation of this PRO."
"RRA will bring the experience and expertise of GFL, CSSA, and producers together and provide consumer brands with sustainable solutions they can trust," added Dovigi. "RRA will establish a Producer Alliance Council and directly involve producers in designing the new program. RRA will work collaboratively with the Council to identify, define, monitor, and meet the new and ambitious program expansion, standardization and recovery targets designated by the Government of Ontario."
"This new model of resource recovery announced by the Government of Ontario will be a catalyst for change in the province, and in other jurisdictions across the country looking at extended producer responsibility programs," said John Coyne, CSSA Executive Chair. "GFL's coast-to-coast operations and diversified service offerings coupled with CSSA's compliance and administration expertise presented an exemplary partnership opportunity. Together, we will support producers in meeting their new obligations in Ontario while also ensuring seamless transition and harmonization with new EPR regimes anywhere in Canada, and North America, in the future."
With the acquisition, RRA will be a resource recovery and compliance solution for producers in North America, augmenting GFL's existing capabilities in collection, sorting, processing, marketing, and reporting of blue box material in Ontario.
The acquisition of CSSA is expected to close in Q3 of 2021.