PPEC Environmental Outlook (CONT’D FROM PAGE 14)
Canada-US-Mexico Agreement (CUSMA) While trade policy is not environmental policy, it can have potential impacts on recycling systems and packag- ing decisions. As PPEC previously noted in its blog, Ex- ploring the Environmental Implications of Potential Tariffs , trade measures targeting specific materials or jurisdictions can influence supply chains, sustainability planning, and environmental outcomes in subtle ways. The Canada–US–Mexico Agreement (CUSMA) is scheduled for its first six-year joint review in July. While the review is not expected to result in direct changes to recycling regulations, changes could potentially affect re- cycling systems, packaging decisions, and sustainability planning. Per- and Polyfluoroalkyl Substances (PFAS) Per- and polyfluoroalkyl substances (PFAS) – a class of chemicals used across various industries, found in prod- ucts such as firefighting foams, textiles, cosmetics, and some types of food-contact packaging – remain an evolv- ing issue, with regulatory activity accelerating. Key issues for the paper packaging industry include the need to distinguish between intentionally added PFAS and unintentional, or legacy, PFAS, and how recycled con- tent may be affected. As regulatory approaches continue to develop in Canada and globally, understanding how PFAS move through supply chains and recycling systems, and how they can be managed and mitigated, remains an evolving area of research. Environmental Claims PPEC continues to monitor developments related to making environmental claims in Canada, including Budget 2025’s proposal to amend certain greenwashing provi- sions under the federal Competition Act. Proposed chang- es include removing the requirement that environmental claims be substantiated using internationally recognized methodologies. This comes on the heels of a recent leadership change at the Competition Bureau, as Commissioner Matthew Bo- swell ended his term early. Under his leadership, the Com- petition Act was amended to strengthen provisions aimed at addressing greenwashing, which is the act of making misleading or false environmental claims. Taken together, these developments introduce uncer- tainty about how environmental claims will be interpreted and enforced going forward. As this evolves, businesses should be mindful of a shifting environmental claims legal and regulatory landscape in Canada and review company and product sustainability disclosures to assess risk and ensure appropriate substantiation. PPEC’s Bottom Line These issues reflect a common theme: environmen- tal policy affecting packaging and recycling is becoming more complex and the impacts are adding up. In 2026, the industry will be dealing with several policies at the same time, many of which are still evolving.
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16 February 23, 2026
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