The Economic Benefits of Recycling in Ontario

1. The Economic Benefits of Recycling in Ontario 02/23/2012

2. Introduction • AECOM was retained in 2009 to carry out study for Ontario Ministry of Environment (MOE) to look at the Economics of Recycling in Ontario. • The focus was on:

3. Introduction (continued) • The terms of reference were spawned by a series of similar studies in the US. • The study was completed but not released. • The material presented here today is extracted from the study with the permission of the MOE. • Since the study was not publically released the comments and observations made today are those of AECOM. They are not attributable to MOE.

4. Time Frames • Three time frames were employed: A time of Economic Turmoil

5. Data Sources • Key data sources:

6. Some Terms

7. Two View Points

8. Looking Downstream • Iron and Steel • Alumina and Aluminum

9. Input / Output Upstream Program Costs and Revenues Interprovincial Input Output Model Economic Outputs Sector Multipliers Economic Sectors • GDP • Labour Income • FTE Jobs • Gross Output AECOM IO Allocation Model Downstream Commodity Sales into Sectors

10. Material Diverted • Between 2002 – 2007 recycled tonnage grew 25%, with almost all of this growth attributable to the Blue Box • Between 2008 to 2012 recycled tonnage was forecast to grow by 9% with most of this growth attributable to the WEEE and MHSW programs.

11. The Backdrop

12. Blue Box Tonnes and Finances Blue Box Tonnes Marketed Blue Box Costs and Revenues

13. Blue Box - Economic Outputs GDP $340m Labour Income $170m Gross Output $560m 3,430 FTE Jobs

14. Blue Box – Downstream Flows Market Paths Ontario Capture

15. Blue Box – Downstream Flows The Recession 2007 Sales in Ontario = $54m

16. Downstream Outputs

17. Downstream Job Outputs

18. MHSW and WEEE- Economic Outputs MHSW GDP $12m Labour Income $ 8m FTE Jobs 160 Gross Output $27m WEEE GDP $61m Labour Income $42m FTE Jobs 835 Gross Output $144m

19. Total Upstream and Downstream All Programs Upstream Upstream & Downstream • GDP • $714 million • $770 million • Labour Income • $356 million • $387 million • Gross Output • $1.2 billion • $1.3 billion • Jobs • 7,300 • 7,900

20. Program Costs and Revenues Costs and Revenues in $millions An Issue or a matter of perspective?

21. Program Outputs

22. Downstream Outputs – Re-use and Re-manufacture, Equipment Supply 1 – includes tonnes obtained beyond subject programs

23. Sector Comparison in the Ontario Economy

24. The Knowledge Cliff What we collect and process Where does it go and how is it used

25. Three Questions on the Economics Front 3. What is the value add?

26. The Value Chain Market material Sell products into markets Economic Assemble material Create products Environment Social Process material

27. Improving The Value Chain – Can we do Better? Think Synergy Think Leverage Create Value Be Innovative Have a Plan

28. Going Forward

29. In the end Why be bothered? … “because if you don’t know where you are going you might end up someplace else.” Yogi Berra

30. Thank you for your time.Any Questions? Andy Keir AECOM 519 840 2242 andy.keir@aecom.com