Canadian court upholds “toxic” classification for plastic packaging, reshaping regulatory landscape

CANADA – The Canadian Federal Court of Appeal (FCA) has upheld the federal government’s decision to list plastic-manufactured items (PMI) as “toxic” under the Canadian Environmental Protection Act (CEPA), restoring Ottawa’s authority to regulate single-use plastics nationwide.

In a unanimous ruling issued on January 30, 2026, the FCA found that PMIs qualify as a “substance” under CEPA and that their designation was “reasonable and lawful.”

The decision overturns a 2023 Federal Court judgment that had deemed the listing unconstitutional and beyond federal jurisdiction following a challenge led by plastics producers and food and beverage associations.

The ruling allows the government to continue regulating items such as checkout bags, straws, and cutlery, and potentially introduce further controls on plastic packaging formats.

Anthony Merante, senior plastics campaigner at Oceana Canada, described the decision as a “landmark ruling” that recognizes plastic pollution as a serious environmental and public health issue.

He argues it enables a precautionary and responsive approach to curb the most harmful single-use plastics while strengthening waste management systems.

Industry groups, however, warn of unintended consequences for supply chains. The Canadian Produce Marketing Association (CPMA) says fragmented packaging regulations across federal and regional markets risk disrupting trade and undermining competitiveness.

Daniel Duguay, CPMA’s senior director for sustainability, points to earlier measures enabled by the PMI designation, including the 2023 non-compostable PLU sticker ban and Pollution Prevention planning requirements, as examples of rules that the association believes increased food waste and logistical complexity.

CPMA maintains that both virgin and recycled plastic packaging provide substantial food safety benefits by protecting fresh produce from contamination and reducing recalls.

The association has urged the federal government to collaborate with North American partners to avoid regulatory divergence that could constrain packaging material choices and composition, with knock-on effects for food loss, hygiene, and transport efficiency.

The FCA decision comes as global scrutiny of plastics intensifies. The EU’s Single-Use Plastics Directive and state-level laws in California have tightened restrictions on problematic items, while South Korea has expanded producer responsibility schemes.

Canada’s reaffirmed federal authority under CEPA aligns it more closely with these jurisdictions, potentially accelerating investment in reuse systems and advanced recycling.

Still, both environmental advocates and industry stakeholders agree on one point: clarity is critical.

CPMA president Ron Lemaire says prolonged uncertainty has already slowed investment in packaging innovation and waste mitigation infrastructure.

As Ottawa considers its next regulatory steps, the court’s decision sets the stage for a more assertive plastics policy, one that must balance environmental protection with trade, food security, and industrial competitiveness.

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