Eco-design incentive bonus

The Ecodesign Incentive Bonus Program by ÉEQ offers financial incentives to companies that implement sustainable packaging solutions, encouraging them to adopt ecodesign practices that enhance the recyclability and environmental impact of their products. The program aims to credit up to 50% of the payable contribution for designated containers and packaging, fostering eco-friendly innovations across various industries.

The ÉEQ (Éco Entreprises Québec) Ecodesign Incentive Bonus Program is a structured initiative designed to promote and support the implementation of ecodesign practices among companies in Canada. The program aims to recognize and reward companies that are taking concrete steps to reduce the environmental footprint of their containers and packaging. By providing financial incentives, the program not only encourages companies to adopt more sustainable practices but also helps to drive innovation in packaging design and materials.

Introduced in 2021, the Ecodesign Incentive Bonus Program was initiated as a pilot project by ÉEQ to address the growing need for sustainable packaging solutions. Over the years, the program has undergone several enhancements, including increased bonus amounts and simplified application processes. The overarching goal of the initiative is to encourage companies to take proactive steps towards ecodesign, ultimately contributing to more sustainable and efficient recycling systems.

The Ecodesign Incentive Bonus Program has several key objectives: 1. **Recognition of Ecodesign Approaches:** The program aims to acknowledge and reward companies that have implemented ecodesign strategies for containers and packaging during the reference year. 2. **Documentation of Ecodesign Strategies:** The initiative seeks to document various ecodesign strategies, challenges, and potential solutions, thereby creating a repository of knowledge for future reference. 3. **Environmental Gains:** The program aims to identify and quantify the environmental gains achieved through ecodesign practices, such as reduced material usage, increased recyclability, and lower carbon footprints. 4. **Social and Economic Benefits:** The initiative also looks at the broader social and economic benefits that result from adopting sustainable packaging solutions. 5. **Sharing of Best Practices:** Companies that earn a bonus are encouraged to share their initiatives and best practices, fostering a culture of sustainability across industries.

To be eligible for the Ecodesign Incentive Bonus, companies must meet the following criteria: 1. **Compliance with ÉEQ:** Companies must be contributing members of ÉEQ and have duly submitted their reports and paid their contributions to the Schedule of Contributions (SoC) within the specified timelines. 2. **Detailed Reporting:** Even low-volume producers must complete a detailed report outlining their ecodesign initiatives. 3. **Ecodesigned Packaging:** The company must have placed one or more ecodesigned containers or packaging on the market during the calendar year of 2023. 4. **Timely Submission:** Bonus application forms and supporting documents must be submitted within the prescribed time limits. 5. **Collaboration with ÉEQ:** Companies must commit to collaborating with ÉEQ to document the initiative and consent to the publication of a communication item related to their ecodesign efforts.

Certain materials and categories are excluded from the bonus, including: 1. **Printed Matter:** Such as retail flyers, magazines, and paper for general use. 2. **Non-Fee Materials:** Materials not subject to a fee, such as B2B packaging. 3. **Materials with Malus Penalties:** Materials subject to a malus penalty in the 2024 SoC, including polyvinyl chloride (PVC), polylactic acid (PLA), and other degradable plastics. 4. **Non-Recyclable Materials:** Materials that do not have a recycling stream, such as ceramics and porcelain.

The bonus is driven by ten ecodesign actions categorized into four themes, each associated with a 20% bonus of the payable contribution for designated containers or packaging. An additional 10% bonus may be granted for companies willing to conduct a detailed case study. Companies can accumulate bonuses up to a maximum of 50%. The eligible ecodesign actions include: 1. **Reduction in Material Usage:** Implementing strategies that lead to a significant reduction in the weight or volume of the packaging material. 2. **Recycled Content Integration:** Incorporating post-consumer recycled content into packaging materials to promote circular economy practices. 3. **Improved Recyclability:** Enhancing the recyclability potential of packaging through design modifications, such as eliminating problematic materials. 4. **Environmental Labeling:** Providing clear and accurate environmental labels to inform consumers about the sustainability aspects of the packaging. 5. **Local Manufacturing:** Utilizing locally sourced materials and manufacturing processes to reduce the carbon footprint associated with transportation. 6. **Design for Reuse:** Developing packaging solutions that can be reused multiple times before disposal. 7. **Elimination of Problematic Materials:** Removing or substituting materials that pose challenges to the recycling process. 8. **Self-Declared Environmental Claims:** Making self-declared claims about the environmental benefits of the packaging, supported by credible documentation. 9. **Sorting Instructions:** Providing detailed sorting instructions to facilitate proper recycling by consumers. 10. **Case Studies:** Conducting comprehensive case studies to document and share the details of the ecodesign initiative.

The application process for the Ecodesign Incentive Bonus Program involves several steps, each with specific timelines: 1. **Bonus Request Submission:** Companies must submit the bonus application form along with supporting documents to ÉEQ within the specified submission period. 2. **Applicant Review:** ÉEQ reviews the eligibility of the applicant companies and may request additional documentation, which must be submitted within 30 days. 3. **Initiative Evaluation:** ÉEQ analyzes the supporting documentation and validates the quantities of materials specified in the request. 4. **Bonus Calculation and Validation:** ÉEQ calculates the eligible bonuses and announces the initiatives that received a bonus. 5. **Issuance of Bonuses:** Credit notes applicable to the contribution balance of a subsequent year are issued to eligible companies. 6. **Publication of Results:** Good ecodesign practices and initiatives that received a bonus are published to share knowledge and inspire other companies.

The bonus percentage is set at a maximum of 50% of the payable contribution for designated containers and packaging, with additional details as follows: 1. **Maximum Bonus Per Application:** A maximum of $25,000 per bonus application. 2. **Multiple Applications:** A company can submit more than one application and be granted up to a total of $60,000. 3. **Minimum Bonus:** A minimum bonus of $5,000 per company, or equal to the total contribution if less than $5,000, will be granted if the request is deemed eligible. 4. **Bonus Calculation Basis:** The bonus amount is determined based on the total quantity (in kilograms) of containers and packaging placed on the market and reported during the calendar year of 2022.

Case studies play a crucial role in the Ecodesign Incentive Bonus Program as they provide detailed documentation of successful ecodesign initiatives. Companies that opt to conduct a case study may receive an additional 10% bonus. These case studies serve as valuable resources for other companies looking to implement similar strategies and contribute to the overall body of knowledge on sustainable packaging.

ÉEQ provides a comprehensive FAQ section to assist companies with common queries related to the program. Topics covered in the FAQ include general questions about the program, eligibility criteria, methodology, and the application process. Companies with specific questions or those requiring further assistance can also contact the Ecodesign and Ecomodulation team for personalized support.

The terms and conditions of the Ecodesign Incentive Bonus Program outline the responsibilities and commitments of both ÉEQ and the participating companies. Key points include: 1. **Authorization:** The person submitting the bonus request must be duly authorized by the company and registered with ÉEQ. 2. **Confidentiality:** Sensitive information provided to ÉEQ will be kept confidential, though data may be used in non-nominative form for future studies or research. 3. **Publication Consent:** Companies agree to the publication of their name and ecodesign practices resulting from their initiatives, unless a formal written request is submitted to waive this. 4. **Right to Modify:** ÉEQ reserves the right to modify the terms and eligibility criteria of the program. 5. **Supporting Documentation:** Companies must retain supporting data for their bonus request for five years, and ÉEQ has the authority to request additional documentation or review any bonus request. In conclusion, the ÉEQ Ecodesign Incentive Bonus Program is a forward-thinking initiative aimed at fostering sustainable packaging solutions across various industries. By providing financial incentives and recognizing ecodesign efforts, the program encourages companies to take active steps towards reducing their environmental footprint, ultimately contributing to a more sustainable future.