Government of Canada invests in Canadian-made solutions to help reduce plastic pollution and waste, expand consumer choices, and build a strong and resilient circular economy

GATINEAU, QC, Oct. 1, 2025 /CNW/ - Plastics play an important role in the lives of Canadians. However, today's linear system of plastics--make, use, and dispose--is neither economically nor environmentally sustainable, with Canada's plastic waste representing a significant lost economic opportunity estimated at nearly $8 billion in 2016.

Today, the Honourable Julie Dabrusin, Minister of Environment and Climate Change, announced more than $3.4 million to support Canadian-made solutions to reduce plastic waste and pollution and build a strong, resilient, and green circular economy that benefits all Canadians. By investing in home-grown solutions and fostering domestic innovation, Canadian businesses and consumers will have access to more choices of sustainable products and systems for a cleaner and healthier environment.

Through the Advancing a Circular Plastics Economy for Canada initiative, 13 Canadian organizations will receive more than $1.8 million for projects to reduce plastic waste and pollution from hospitals and the textile sector and provide better insight into plastic waste generated from the construction sector. Recipient organizations will also carry out initiatives to encourage the use of reusable and refillable packaging for foodware, personal care, and cleaning products in groceries, restaurants, and retail stores, providing Canadians with more sustainable and affordable options for everyday items. This funding will also help assess the economic cost of single-use plastic litter and waste and improve data on how frequently plastic products are found in the environment.

Nearly $1.6 million in additional funding will be provided to two other projects to develop innovative Canadian-made solutions, including a reusable sleeve to replace single-use plastic pallet wrap and an improved approach to sort plastic film and flexible packaging. The funding for these projects is provided through the two latest Canadian Plastics Innovation Challenges.

Today's funding is part of the Government of Canada's ongoing efforts to reduce plastic waste and pollution and move toward a circular plastics economy. It reaffirms the Government of Canada's commitment to building a strong and resilient economy for all while protecting Canadians' health and the environment.

This funding also complements the recent call for proposals to improve our understanding of the socio-cultural and economic impacts of plastic waste and pollution on Indigenous communities and at advancing scientific knowledge to inform future actions on plastic pollution.

Quotes

"We need to work together to turn the tide on plastic pollution. Innovation and targeted solutions are essential to keeping plastics in the economy and out of the environment, improving the circularity of plastics in Canada. We are proud to support made-in-Canada solutions by small- and medium-sized businesses, non-profit organizations, researchers, and others to reduce plastic waste and pollution. Improving how we make, use, and manage plastics is important to prevent plastic pollution and waste, build economic opportunities, recuperate lost value, create jobs, drive investments, and spur innovation."
– The Honourable Julie Dabrusin, Minister of Environment and Climate Change

"Plastic pollution is one of the greatest threats to our environment and we need to find new tools that will help us reduce our plastic consumption. The funding made available by the Innovative Solutions Canada program will allow local companies to reduce plastic use in many industries such as textiles, healthcare, and food packaging. Through initiatives such as the Canadian Plastics Innovation Challenges, Innovative Solutions Canada is helping us move toward a more sustainable economy."
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

Quick facts

• In 2021, Canadians generated almost five million tonnes of plastic waste and approximately 40 thousand tonnes of that entered the environment as pollution. Of all the discarded plastic, roughly 92% was landfilled or incinerated while only 7% was recycled into plastic pellets and flakes ready for use in new products. Packaging accounted for the largest share of discarded plastics.
• In 2024, the Government consulted on two proposed roadmaps to extend the life of products and address plastic waste and pollution from the apparel and textile sector and end-of-use electronics. A What We Heard Report summarizing the main themes that emerged from the textile consultation process was published in March.
• The Canadian Plastics Innovation Challenges are part of the Innovative Solutions Canada program. The challenges seek solutions for sectors that generate some of the greatest quantities of plastic waste and pollution and/or show the greatest opportunity for impact and innovation.
• Since 2018, through 18 Canadian Plastics Innovation Challenges, the Government of Canada has committed over $26.8 million to innovators. Environment and Climate Change Canada, as the sole sponsor, has invested over $8.3 million in eight of these challenges, which have leveraged over $5 million in external funding.

Related products

• Advancing a Circular Plastics Economy for Canada: Project Descriptions
• Recipients of the Two Canadian Plastics Innovation Challenges

Associated links

• Innovative Solutions Canada: Challenges
• Plastics Challenge: Improving the Collection and/or Sorting of Plastic Film and Flexible Packaging
• Plastics Challenge: Advancing Reuse to Replace Single-Use Plastics
• Canada's Zero-Waste Plastic Agenda
• Physical Flow Account for Plastic Materials

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SOURCE Environment and Climate Change Canada

Contacts: Keean Nembhard, Press Secretary, Office of the Minister of Environment and Climate Change, 343-552-2387, [email protected]; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll-free), [email protected]