Circular Construction

The construction sector is major driver of Canada’s economy, generating over $ 140 billion of the country’s GDP (2020). However, the sector is responsible for 1/3 of all solid waste, other than being extremely energy- and resource-intensive. Only houses and buildings account for 13% of total carbon emissions in Canada. In the last two decades, several standards and certifications for a greener built environment were thus adopted, with a focus on buildings durability and design for reuse. 

This sector presents great opportunities for circular innovation across its entire value chain. National efforts include prioritising low-carbon and renewable building materials and in particular timber, since Canada is a major producer of wood. Recycled plastics are also being deployed in the production of furniture, decking, fences and interior textiles like carpets. Local expertise in prefab buildings and modular construction is also increasing, representing a promising opportunity for business collaborations. Increasing raw material prices are also gradually driving demand for recovered materials such as timber from demolished buildings. 

The development of circularity in the sector varies greatly by province and region. British Columbia, Quebec and Ontario are currently leading the circular construction transition at provincial level via targeted initiatives and support to business innovations. For example, the City of Vancouver mandated that 75% of all materials from homes built before 1950 and one- and two-family homes be recycled after demolition already in 2014 to support resource recovery. 

Circular Economy Leadership Canada is currently driving several projects to foster circularity in Canadian construction, including supporting the development of a roadmap and action plan for the built environment sector, coordinating experimentation on cement recycling and reuse, and nation-wide life cycle extension projects for buildings. The Consulate General of the Kingdom of the Netherlands in  Toronto initiated the Dutch Canadian Circular Alliance, a bilateral platform that facilitates exchange of knowledge and best practices in the Circular Economy, the network includes many Dutch and Canadian companies working in the construction and urban planning sectors.

Agriculture and Food Waste Management

Canada is a world exporter of agrifood products, with 1/8 local jobs being related to the food system. The agriculture industry is responsible for a considerable amount of the country’s emissions and environmental impact and has already started to invest in cleaner and more sustainable innovations to also improve its resilience to climate change. National initiatives and targets include a more efficient and safer use of fertilisers, and considerable investments into climate-smart agriculture technologies, for example through the Canadian Agricultural Partnership.  

Attention is also paid to diversifying farmer’s revenue streams. One avenue is harvesting feedstock for biofuels productions. Another comprises the alternative uses of crop residues or manure for the bio-based products sector, such as for bio-based chemicals for household cleaning products, and the employment of agricultural waste for bioenergy production to supply locally. In this area, innovative business models such as entrepreneurial co-operatives can play a pivotal role in bringing about the necessary change.

The federal government has also undertaken a 5-year plan to invest over $26 million in initiatives that help reduce food waste and thus cut greenhouse gas emissions. Recent estimates showed that more than 50% of the Canadian food supply ends up as waste, with a loss of around $50 billion in avoidable food waste and considerable methane emissions as a result. Scaling biowaste-to-energy business models is seen as a particularly promising way to both tackle food waste and reduce emissions from electricity generation. Other areas for fruitful business collaborations include improved packaging design for longer shelf life and technologies to reduce the amount of discarded food as a result of inefficient food processing techniques in factories. 

Plastics and Waste Management

The increasing amounts of landfilled waste in Canada represent a considerable source of methane emissions, which federal and local governments are now specifically tackling. With the Strategy on Zero Plastic Waste, the goal of decreasing waste by 50% by 2040 was introduced. Efforts to divert products and materials from landfills are primarily aimed at promoting reuse, repair and refurbishment activities. In particular, goods such as clothing, furniture, electronics and household appliances are at the core of the nation-wide value-retention promotion programs. As these processes are estimated to be worth CAN$ 56 billion annually, Canada is preparing a targeted national strategy to support the growth in this sector.

The plastics production industry in Canada is a major economic sector, worth $35 billion in revenue. The country disposes of 3 million tons of plastics annually, of which around half is packaging. With only around 12% of disposed plastics currently being recycled, the potential for circular innovation in the sector is enormous. Thrown away plastics are forecasted to become an $11 billion industry by 2030. To drive the circular transition in the sector, the Canada Plastics Pact Roadmap was launched in collaboration with multiple value chain stakeholders from the public and private sectors. Amongst others, the Pact aims at recycling or composting 50% of plastics packaging and at 30% recycled components in all plastics packaging by 2025. 

The solid waste management and plastics sectors present multiple opportunities for Dutch innovators to contribute to the circular transition. At government level, priority is given to the promotion of innovations and business models for plastics avoidance, reduction or substitution from the design phase, and for improved collection, sorting and recovery techniques at the end of each lifecycle. In particular, Dutch businesses active in enhancing plastics recyclability, innovating (food) packaging design and materials, and improving the quality and reusability of recycled plastics could find good grounds for expansion in Canada.