Modeling the Economic Impacts of Increasing Diversion in Ontarios Industrial, Commercial and Institutional (IC&I) Sector

This study examines the challenges and opportunities for increasing diversion in Ontario’s Industrial, Commercial and Institutional (IC&I) sector. The IC&I sector is responsible for more than 75% of all waste generated in the province, but manages to divert only 12% of end of life material from landfills. Using a system based cost model, focus is placed on analyzing 1) What are possible factors that contribute to poor IC&I diversion performance? 2) What would happen to provincial recycling costs if IC&I diversion increased? 3) What material types should policy planners prioritize when attempting to increase overall diversion? The results of this analysis show that Ontario’s poor diversion may be explained by low landfill disposal costs and high recycling costs relative to other jurisdictions. While there are significant opportunities to increase diversion in the IC&I sector, particularly for printed paper and packaging materials, the costs associated with doing so may prove prohibitive to businesses. Significant investments in collection and processing infrastructure may be necessary to accommodate for increases in diverted material from the IC&I sector. The findings of this study suggest that Ontario prioritize certain materials for increased diversion (due to high levels of recyclability and low cost), and support the sector through revised legislation that addresses who is legally mandated to divert material and who should pay for it.