Quebec Deposit System Costs Will Rise to 450 Million Dollars

Quebec's beverage container deposit system will cost an estimated $450 million in 2027, a 45% increase from $308 million this year, as Consignaction prepares to include wine bottles, spirits bottles, and multilayer cartons in the program beginning March 1, 2027. The expansion will add nearly one billion containers to the provincial recycling system. According to a Consignaction document obtained by Radio-Canada, more than half of next year's projected spending will fund the development of container return locations.

The remaining costs will cover transportation, material processing for recycling, and general system administration. Consignaction expects to collect $225 million, or half of the projected annual costs, through contributions from producers under regulations adopted by the previous Coalition Avenir Québec government. The organization also anticipates a $130 million deficit this year.

Jean-François Lefort, Consignaction's vice president of strategy, said the contribution increases are necessary to maintain the system's financial stability and achieve a balanced budget. Without sufficient payments from producers, the organization would continue to operate at a deficit.

The higher contributions will affect several types of containers beginning in March 2027. Producer fees for plastic bottles will increase from 4 cents to 7 cents per container, while fees for single-use glass containers holding less than 500 milliliters will rise from 4 cents to 8 cents. For single-use glass bottles larger than 500 milliliters, producer contributions will increase from 4 cents to 13 cents. The deposit amounts consumers pay when purchasing eligible containers will remain unchanged.

Consignaction has not determined whether retailers will pass the higher producer costs on to consumers. Karel Ménard, executive director of the Front commun québécois pour une gestion écologique des déchets, expressed concern that households could ultimately bear the additional expense, despite the system's reported collection rate of nearly 80%. Ménard also questioned the high operating costs and said improvements were still needed, particularly in the availability and accessibility of container return locations.

The expansion will bring an estimated 372 million wine and spirits bottles into Consignaction's system. Overall, approximately 553 million glass containers will be covered by the deposit program and processed through its return network. To handle the increased volume, Consignaction plans to build a $60 million glass processing facility in Sorel-Tracy.

The Quebec equipment manufacturer Machinex will operate the plant, which is intended to help meet regulatory requirements for glass reuse. Consignaction maintains that two existing glass processors in Mauricie and Montérégie lack the infrastructure needed to handle the additional volume and meet government requirements. Under the regulations, 50% of the glass supply must be reused to manufacture bottles.

Michel Marquis, president of 2M Ressources, one of the existing processors, disputed that assessment. He said his company has the technology to produce high-quality glass and has done so for 25 years. Marquis also questioned the decision-making process behind the proposed facility.

The decision to build the plant was based on a Deloitte analysis that Consignaction has declined to make public. Marquis said he was not interviewed for the analysis, while Consignaction maintains that his company declined to participate. Marquis has called on Quebec's new government to pause both the expanded deposit program and construction of the facility until the decision can be examined more transparently.

Consignaction, meanwhile, says only a marginal portion of the increased producer contributions will finance the plant, including 1 cent from each container's additional environmental fees. According to Consignaction, companies placing small, single-use refillable containers on the market will pay nearly $6 million annually in contributions, of which $810,000 will help finance the new facility.

The Association québécoise de récupération des contenants de boissons has managed and financed Quebec's deposit system since November 2023, replacing Recyc-Québec and the Association des brasseurs in those responsibilities. The nonprofit organization operates publicly under the Consignaction name.