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    Coping with Increasing Canadian Regulations

    Canada’s chemical sector is subject to increasing legislative and regulatory change more than any other time in the past.

    Coping with Increasing Canadian Regulations
    J. Gary LeRoux, President & CEO, Canadian Paint and Coatings Association07.27.23
    Canada’s chemical sector is subject to increasing legislative and regulatory change more than any other time in the past. How proposed new regulations are further developed and then administered will greatly impact the CASE sector for years to come. If industry wants positive outcomes over the next several years, the time to engage on these changes is now. It requires a ‘whole of industry’ approach to ensure fair regulations, while continuing to deliver functional products for customers.

    The many proposed regulatory changes noted below will impact all companies doing business in the CASE sector in Canada. The work ahead will be time consuming, challenging and require significant engagement by industry stakeholders with common interests. The coatings industry is among the most heavily regulated sectors of the economy when it comes to chemicals in products. That was evident in the first three phases of Canada’s Chemicals Management Plan (CMP) over the past 15 years where 4,300 chemicals were prioritized for assessment and 1,600 of those are used in thousands of CASE products. The order of magnitude in Canada will very likely be greater when the legislative and regulatory changes noted below ramp up.

    CPCA’s monthly Regulatory Radar for members provides detailed regulatory updates on ‘all’ the issues facing the sector. It details CPCA’s ongoing work for the benefit of all segments of the CASE industry on the proposed changes such as:
    • Lower VOC limits for AIM coatings
    • Ongoing discussions on biocide restrictions for paint preservation including efforts to ‘modernize’ the Pest Control Products Act and its impact on industry
    • New regulatory initiatives assessing 4,700 PFAS chemicals
    • Potentially up to 10,000+ in the coming years
    • Substantive amendments to federal legislation especially amendments to the Canadian Environmental Protection Act (CEPA 2023) adding further requirements for risk assessment and increasing regulations for industry to be determined more precisely in the months ahead with data to be gathered from industry
    • 850 new substances prioritized for assessment in CMP-4 requiring industry’s initial feedback via mandatory data gathering with even more to follow in 2024
    • Proposed regulations for increased labelling of chemicals in consumer products
    • Current initiatives to increase supply chain transparency
    • Proposed use of recycled content in plastic packaging, containers and equipment and new approaches restricting potential microplastic releases; and the list goes one. These are in addition to the already significant regulatory workload for the CASE industry experienced over the past 5-10 years. Over the past 7 years the Canadian federal government increased staffing levels by 40 percent and forging ahead with these increasing regulatory demands.

    A ‘whole of industry approach’ is now required with input from all companies doing business in the CASE industry in Canada.  It will require strong datapoints from every corner of the industry whether it affects manufacturers, suppliers or distributors. Companies may be compelled to provide data to quantify information and/or test procedures or laboratory practices industry must follow in performing required testing. Industry’s goal must be to ensure the short and long-term impacts of proposed regulations remain reasonable, while retaining the product performance demanded by customers. All this will be done while ensuring products are safe and without negative impacts on human health or the environment. That outcome can only be achieved by relying on substantive scientific data to guide the way forward and address the politicization of the proces if and when evidenced-based data is ignored.

    Current and emerging regulatory issues impacting the CASE industry are addressed by CPCA via a comprehensive digital database covering all actions taken by CPCA and its technical committees to ensure positive regulatory outcomes. Details on those actions are available on the Canada CoatingsHUB. Companies must have immediate access to this important source of information outlining industry concerns on proposed regulatory changes before they are finalized. More importantly companies may wish to add valuable insights to strengthen CPCA’s final industry recommendations for even better outcomes. The database is searchable for ease of access and available on all platforms. Based on feedback from more than 250 members using the database, representing the vast majority of CASE products sold in Canada, the CoatingsHUB was enhanced. Members can access more than 2,500 industry resources on 16 issue management categories with 2,947 chemicals tracked on the status of existing regulatory requirements and the many evolving changes. The Hub provides:

    • A personalized regulatory dashboard
    • Industry resources covering 16 critical issue categories
    • Real-time search and tracking of CASE chemicals in commerce by CASRN˚
    • Compliance alerts ensuring deadlines are never missed on existing and pending regulations and government-mandated calls for industry data
    • Up-to-date regulatory information such as formal position papers, aggregated industry submissions, member bulletins, formal consultation letters, etc.

    Canada’s regulatory development process is getting more complex. These regulations are captured and updated on the only digital regulatory database for the CASE industry in Canada, the CoatingsHUB. The CASE industry trusts the CoatingsHUB to support their compliance efforts. A recent survey revealed that 77%, at least 8 out of 10 HUB users, are fully satisfied with their experience.

    The whole CASE sector must now be more engaged and focused on addressing stronger ‘all of industry’ approach to emerging regulations in Canada. It is the only way to ensure new government initiatives are based on sound scientific data, most of which rely on industry sources. At the same time, it must ensure full consideration is given to the impact of proposed changes on the companies subjected to new chemical restrictions or bans impacting global trade. The CASE industry very focused on sourcing more sustainably sourced substances for products and reducing its carbon footprint in manufacturing processes. It also complies with existing and contributes insight on evolving regulations to ensure its customers continued economic success.

    In the end, better data equals better outcomes for the CASE industry and its customers.

    The Canadian Paint and Coatings Association reporesents Canada's leading paint and coating manufacturers and their industry suppliers in the primary product categories of architectural paints, industrial finishes and automotive coatings.


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