The Federal Court of Appeal has upheld the federal government’s decision to classify “plastic manufactured items” as toxic under the Canadian Environmental Protection Act, 1999 (CEPA), reversing a lower court ruling and reinforcing Ottawa’s authority to regulate single-use plastics.
In a unanimous decision issued on January 30, a three-judge panel overturned the Federal Court’s 2023 ruling in Responsible Plastic Use Coalition v. Canada (Environment and Climate Change), which had struck down the classification as unreasonable and overly broad. The appellate court found the federal government acted within its legal authority in adding plastic manufactured items to Schedule 1 of CEPA’s List of Toxic Substances.
The ruling preserves the current regulatory framework, including prohibitions on the sale, import and manufacture of designated single-use plastic products across Canada.
The case marked a major legal test of the federal government’s environmental powers after industry groups challenged the classification, arguing it amounted to regulatory overreach and infringed on provincial jurisdiction. They also contended that only a small fraction of plastics becomes pollution and that broadly labelling all manufactured plastic items as toxic was unjustified. Specifically, industry groups argued that only 1% of plastic manufactured items, or PMIs, enter the environment each year.
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“The respondents latch on to this, contending that this fact is conclusive evidence that the Order is unreasonable,” the court wrote in its decision. “This argument fails as it, in effect, invites this Court to develop its own measurement or yardstick to assess the reasonableness of the Order.”
Industry groups also suggested that there is an absence of quantitative testing establishing which particular plastics cause particular harms.
The Chemistry Industry Association of Canada (CIAC) expressed disappointment in the decision.
“While we respect the Court’s decision, CIAC remains concerned that the government’s approach departs from the core principles of CEPA, which require decisions to be based on robust, substance-specific scientific risk assessments,” said Greg Moffatt, President and CEO of CIAC, in a statement.
The court affirmed that plastic manufactured items can be categorized as a “substance” under the law and that sufficient scientific evidence exists to support their listing based on potential environmental harm.
The court further emphasized that CEPA is designed to operate under a precautionary principle, allowing federal regulators to act where there is credible risk of harm, even in the absence of complete scientific certainty.
A number of environmental organizations welcomed the decision. The Canadian Association of Physicians for the Environment, David Suzuki Foundation, Environmental Defence Canada, Greenpeace Canada and Oceana Canada intervened in support of the federal government. The groups were represented by environmental law charity Ecojustice.
“From production to end-of-life, plastic is a ubiquitous and persistent pollutant that threatens the environment and burdens our economy,” announced Lindsay Beck, a lawyer at Ecojustice, in a statement from the David Suzuki Foundation. “In today’s ruling, the Federal Court of Appeal recognized that listing ‘plastic manufactured items’ as toxic under CEPA is entirely in line with the law’s purposes of preventing pollution and protecting Canada’s biodiversity.”
Beck added that the decision affirms the federal government’s ability to respond to emerging environmental risks and implement precautionary measures to prevent long-term ecological damage.
The appellate ruling restores legal certainty after the federal court’s 2023 decision cast doubt on Ottawa’s regulatory framework for plastics. That earlier ruling had concluded the designation was unconstitutionally broad and encroached on provincial authority over waste management.
By overturning that decision, the Federal Court of Appeal has reaffirmed CEPA as a key federal tool for addressing plastic pollution and regulating products that may pose risks to ecosystems and human health.
The decision is expected to have significant implications for Canada’s ongoing efforts to reduce plastic waste and advance its broader environmental and climate policy objectives.
