Plastics challenge: Advancing Reuse to Replace Single-Use Plastics

From: Innovation, Science and Economic Development Canada

Environment and Climate Change Canada (ECCC) is seeking environmentally acceptable and cost-effective innovative systems or technologies to increase the adoption of reuse systems to replace single-use plastic packaging.

Challenge sponsor:
Environment and Climate Change Canada (ECCC)

Funding mechanism:
Grant

Opening date:
September 12, 2023

Closing date:
October 31, 2023, 14:00 Eastern Time

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Prospective applicants should refer to the Innovative Solutions Canada Grant Instructions and Procedures.

 

Challenge
 

Problem statement

The use of single-use plastic packaging has increased exponentially in recent decades, contributing to the growing issue of plastic waste. Approaches that include upstream solutions, such as reduction and reuse, are the most effective means to prevent plastics from becoming waste in the first place. Reusable packaging that is safely and efficiently refilled and reused for its original purpose can reduce waste while providing additional benefits to consumers and industry.

New and established businesses continue to implement elements of reuse to provide more sustainable purchasing options. However, while public demand for sustainable options is increasing, the adoption of reuse systems (such as refillable container systems) remains low due to increased cost and lack of convenience (perceived or real), among other factors. Opportunities exist both to improve and to increase the implementation of reuse systems.

Several issues are hindering the growth and spread of reuse systems, and innovation is needed for both consumers and businesses to transition toward reuse in greater numbers. Existing habits that rely on the convenience of single-use, upfront costs, and safe cleaning processes, among other factors, present barriers to the growth of this sector. To increase environmental benefits and financial viability, reuse systems must also ensure that packaging is returned as many times as possible, and that collection and reuse (e.g. reverse logistics) are efficient.

This Challenge aims to identify innovations that will help overcome barriers to facilitate the expansion and implementation of reuse systems.

Desired outcomes and considerations

Essential (mandatory) outcomes

Proposed solutions must:

  1. Accelerate the adoption and/or scaling of reusable packaging solutions to displace single-use plastics, such as tools or systems to increase the number of times that reusable packaging is returned and recirculated
  2. Minimize environmental impact in comparison to existing reuse practices (e.g. reduced waste, energy consumption, decreased transportation movements leading to lower greenhouse gas (GHG) emissions) where comparable practices exist. Where no comparable practices exist, be environmentally acceptable
  3. Be safe for human health (e.g. appropriate sanitisation procedures, where applicable)
  4. Be cost-effective
  5. Demonstrate convenience of use and functionality, either by improving existing practices where such practices exist or as a viable alternative to existing reuse practices, including improved or novel packaging designs

Additional outcomes

Proposed solutions should:

  1. Leverage or build upon existing habits or business practices
  2. Reduce the use of difficult-to-recycle single use primary food plastic packagingFootnote 1
  3. Take into account varying levels of access to technology and digital literacy among members of the public
  4. Address the challenges associated with scaling reuse systems across rural and/or remote areas
  5. Aid users in the return of reusable goods for further distribution. This could include supporting reverse logistics to facilitate intra-business reuse or supporting logistics needed for the precompetitive inter-business sharing of pooled reusable resources
  6. Utilize novel technological opportunities, such as quantum computing and artificial intelligence, to improve one or more aspects of reuse programs, such as reverse logistics
  7. Produce a reuse system that generates zero plastic waste through using alternative materials in product design
  8. Be applicable to sectors other than packaging to reduce plastic waste (e.g. textiles, construction, automotive)

Background and context

Plastic packaging and single-use plastics form a significant part of the Canadian plastics economy, making up over 37% of all plastics placed on the market in 2019. Due to their short lifespan (typically less than one year), they also make up over 50% of all plastic waste generated in Canada, but less than 14% are recycled, meaning the vast majority of plastic packaging and single-use plastics end up in landfills or in the environment as pollution after only one use.

Following the waste management hierarchy, reducing plastic use and adopting reusable options are the preferred options for addressing plastic waste. There are over 150 companies currently exploring, deploying, or operating reusable packaging systems in Canada. There are several models of reuse systems, including ‘return from home’ (where reusable packaging is used and then collected from users’ homes or workplaces), ‘refill on the go’ (where reusable containers are refilled at stores), and ‘return on the go’ (where packaging is returned at drop-off sites or at designated machines). Current return-focused models typically use a deposit system where consumers pay a fee at the point of purchase which is returned to them when packaging is returned. These deposits can restrict participation in reuse systems, particularly when a less expensive, single-use option is also available.

Additionally, a key challenge for return-focused models is that a sizeable portion of users fail to return reusable goods. While innovations like smartphone apps and the use of QR codes on packaging have attempted to simplify return processes for consumers and businesses, innovations to further facilitate this process could improve existing reuse systems and encourage the creation of new systems. Return-focused reuse systems also pose challenges related to logistics for businesses, as current systems are optimized to ensure that truck, floor, and warehouse spaces are maximized, leaving little room for reusable packaging to be collected and stored.

The Government recognises the importance of innovation in addressing plastic waste and preventing pollution. Through the Canadian Plastics Innovation Challenge program, the government has provided funding to Canadian businesses to spur innovation and the development of technologies that address issues such as difficult to recycle plastic film food packaging and the separation of mixed plastics. ECCC is committed to supporting restaurants, grocers, and other businesses develop and implement innovative solutions that reduce plastic waste and pollution. Federal, provincial, and territorial governments are also working together through the Canadian Council of Ministers of the Environment (CCME) to achieve zero plastic waste and transition to a circular economy for plastics in Canada. Working with partners from every stage of the plastics lifecycle, Canada aims to keep plastic in the economy and out of landfills and the environment.

Maximum grant value and travel

Multiple grants could result from this Challenge.

Phase 1:

  • The maximum funding available for any Phase 1 Grant resulting from this Challenge is: $150,000.00 CAD
  • The maximum duration for any Phase 1 project funded by a grant resulting from this Challenge is up to 6 months
  • Estimated number of Phase 1 grants: 3

Phase 2:

  • The maximum funding available for any Phase 2 Grant resulting from this Challenge is: $1,000,000.00 CAD
  • The maximum duration for any Phase 2 project funded by a grant resulting from this Challenge is up to 12 months
    • Note: Only eligible businesses that have completed Phase 1 could be considered for Phase 2.
  • Estimated number of Phase 2 grants: 1

Note: Selected companies are eligible to receive one grant per phase per challenge.

This disclosure is made in good faith and does not commit Canada to award any grant for the total approximate funding. Final decisions on the number of Phase 1 and Phase 2 awards will be made by Canada on the basis of factors such as evaluation results, departmental priorities and availability of funds. Canada reserves the right to make partial awards and to negotiate project scope changes.

Travel

No travel is anticipated in Phase 1.

Kick-off meeting

All communication will take place by telephone or videoconference.

Progress review meeting(s)

Any progress review meetings will be conducted by telephone or videoconference.

Final review meeting

All communication will take place by telephone or videoconference.

Eligibility
 

Solution proposals can only be submitted by a small business that meets all of the following criteria:

  • for profit
  • incorporated in Canada (federally or provincially)
  • 499 or fewer full-time equivalent (FTE) employeesFootnote **
  • research and development activities that take place in Canada
  • 50% or more of its annual wages, salaries and fees are currently paid to employees and contractors who spend the majority of their time working in CanadaFootnote **
  • 50% or more of its FTE employees have Canada as their ordinary place of workFootnote **
  • 50% or more of its senior executives (Vice President and above) have Canada as their principal residenceFootnote **

Evaluation criteria

The applicant must complete the Challenge Stream Electronic Submission Form with a degree of information sufficient to enable Canada’s assessment of the proposal against the criteria and the Evaluation Schema. The information must demonstrate how the proposal meets the criterion.

Mandatory Criteria

(Bidder's proposal must address)

Question 1 a: Scope

Describe the proposed solution and demonstrate how it responds to the challenge. Include in your description the scientific and technological basis upon which the solution is proposed and clearly demonstrate how the solution meets all of the Essential Outcomes (if identified) in the Desired Outcomes section in the Challenge Notice.

Evaluation Schema (Mandatory — Pass/Fail)

Pass

The Bidder's proposed solution is clearly articulated, within the scope for the challenge and addresses all Essential Outcomes (if identified) in the Challenge Notice.

Fail

The proposed solution is articulated as out of scope for the challenge.
OR
The proposal does not clearly demonstrate how the proposed solution addresses all Essential Outcomes listed in the challenge.
OR
The proposed solution is poorly described and does not permit concrete analysis.
OR
There is little to no scientific and/or technological evidence that the proposed solution is likely to meet the challenge.

Question 2: Current Technology Readiness Level (TRL)
  1. Indicate the current TRL of the proposed solution. (Drop Down Menu of the Challenge Stream Electronic Submission Form)
  2. Describe the research and development activities that have taken place to bring the proposed solution to the stated TRL.
Evaluation Schema (Mandatory — Pass/Fail)

Pass

The Bidder has demonstrated that the proposed solution is currently between TRLs 1 and 6 (inclusive), and provided justification by explaining the research and development (R&D) that has taken place to bring the solution to the stated TRL.

Fail

The Bidder has not provided sufficient evidence to demonstrate that the current TRL is between 1 to 6 (inclusive) including:

  1. There is insufficient/no evidence provided for TRL judgment.
  2. The solution involves the development of basic or fundamental research.
  3. The solution is demonstrated at TRL 7 or higher.
  4. Insufficient/unclear/no justification explaining the R&D that took place to bring the solution to the stated TRL.
  5. The explanation simply paraphrases the description of a given TRL level.
Question 3a: Innovation

Demonstrate how the proposed solution meets one or more of the ISC definitions of innovation below:

  1. An invention*, new technology or new process that is not currently available in the marketplace.
  2. Significant modifications to the application of existing technologies/components/processes that are applied in a setting or condition for which current applications are not possible or feasible.
  3. An improvement in functionality, cost or performance over an existing technology/process that is considered state-of-the-art or the current industry best practice.

* An "invention" is defined for the purposes of ISC as: "A manufacturing design or any other new and useful improvement that is new or novel, that is, not commonly known or not an obvious derivative of an existing way of doing things."

Evaluation Schema (Mandatory — Pass/Fail)

Pass

The Bidder has demonstrated that the proposed solution meets one or more of the ISC definitions of innovation.

Fail

The Bidder has not provided sufficient evidence to demonstrate that the current TRL is between 1 to 6 (inclusive) including:

  • Bidder has not provided sufficient evidence to demonstrate that the proposed solution meets any of the ISC definitions of innovation; OR
  • Bidder has demonstrated that the proposed solution is an incremental improvement, "good engineering", or a technology that would go ahead in the normal course of product development (i.e. the next version or release).
Question 3b: Advance on State of the Art

Describe in detail the competitive advantages and level of advancement over existing technologies. Where appropriate, name existing technologies as well as potential substitutes or competitors.

To demonstrate this, proposals should include the following information:

  • Improvements (minor or major) over existing technologies or substitutes. Use direct comparison.
  • How the proposed innovation will create competitive advantages in existing market niches or market spaces.
Evaluation Schema (Mandatory Criteria — Pass/Fail + Points)

0 points/Fail:

  • The Bidder has not demonstrated that the proposed solution advances the state-of-the-art over existing technologies, including available competing solutions; OR
  • The proposed solution improves minimally upon the current state of the art, though not sufficiently enough to create competitive advantages in existing market niches; OR
  • The stated advancements are described in general terms but are not substantiated with specific, measurable evidence.

5 points/Pass:

  • The Bidder has demonstrated that the proposed solution offers one or two minor improvements to existing technologies, including available competing solutions that have potential to create competitive advantages in existing market niches.

12 points/Pass

  • The Bidder has demonstrated that the proposed solution offers three or more minor improvements to existing technologies, including available competing solutions, that together are likely to create competitive advantages in existing market niches; OR
  • The Bidder has demonstrated that the proposed solution offers one significant improvement to existing technologies that is likely to create competitive advantages in existing market niches

20 points/Pass:

  • The Bidder has demonstrated that the proposed solution offers two or more significant improvements to existing technologies, including available competing solutions that are likely to create competitive advantages in existing market niches and could define new market spaces; OR
  • The Bidder has demonstrated that the proposed solution can be considered a new benchmark of state of the art that is clearly ahead of competitors and that is likely to define new market spaces

Part 2: Point-Rated Criteria

Proposals must meet the overall minimum pass mark of 50% to be deemed responsive. Proposals that do not achieve the minimum pass mark will be declared non-responsive and given no further consideration.

Point-Rated Criteria

(Bidder's proposal to address)

Question 1b: Scope

Demonstrate the scientific and technological basis of how the proposed solution addresses the Additional Outcomes(if identified) in the Desired Outcomes section in the Challenge Notice. If no Additional Outcomes are identified in the Challenge Notice, text entered in this section will not be considered.

If no Additional Outcomes are identified in the Challenge Notice, Bidders will receive 10 points.

Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate that the solution will address any of the Additional Outcomes. 0 points
  2. Information provided clearly demonstrates that the solution will address some (<50%) of the Additional Outcomes. 3 points
  3. Information provided clearly demonstrates that the solution will address most (50% or more) of the Additional Outcomes. 6 points
  4. Information provided clearly demonstrates that the solution will address all (100%) of the Additional Outcomes. 10 points
Question 4: Phase 1 Science and Technology (S&T) Risks

Describe potential scientific and/or technological risks to the successful development of the proof of feasibility and how they will be mitigated in Phase 1.

Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate that the Bidder has considered potential risks and mitigation strategies and/or information provided contains significant gaps. 0 points
  2. Information provided demonstrates that the Bidder has considered some potential risks and associated mitigation strategies but there are minor gaps in risks and/or associated mitigation strategies. 5 points
  3. Information provided clearly demonstrates that the Bidder has sufficiently considered the risks and defined associated mitigation strategies. 10 points
Question 5: Phase 1 Project Plan

Demonstrate a feasible Phase 1 project plan by completing the table.

  • Indicate if any milestones and activities will be completed concurrently
  • Indicate the estimated exit TRL at the completion of Phase 1. (Drop Down Menu of the Challenge Stream Electronic Submission Form)
Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate a feasible project plan for Phase 1 and/or the project plan exceeds the maximum duration indicated in the Challenge Notice. 0 points
  2. Project plan for Phase 1 is conceivably feasible but not clearly demonstrated and/or includes gaps. 10 points
  3. Information provided clearly demonstrates a feasible project plan for Phase 1. 20 points
Question 6: Phase 1 Project Risks

Describe potential project risks to the successful development of the proof of feasibility and how they will be mitigated in Phase 1.

Bidders should address the following risks, as applicable:

  • Human Resources
  • Financial
  • Project Management
  • Intellectual Property
  • Other project-related risks

Note to Bidders: S&T risks should not be included in this section. Question 4 addresses S&T risks.

Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate that the Bidder has considered potential risks and mitigation strategies and/or information provided contains significant gaps. 0 points
  2. Information provided demonstrates that the Bidder has considered some potential risks and associated mitigation strategies but there are minor gaps in risks and/or associated mitigation strategies. 5 points
  3. Information provided clearly demonstrates that the Bidder has sufficiently considered the risks and defined associated mitigation strategies. 10 points
Question 7: Phase 1 Implementation Team

Demonstrate how the project implementation team has the required management and technological skill sets and experience to deliver the project plan for Phase 1 by completing the table. A member of the implementation team can have more than one role.

Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate that the project team has the required management and technological skill sets and experience to deliver the Phase 1 project plan. 0 points
  2. Information is provided but there are minor gaps in required management and/or technological skill sets and/or experience to deliver the Phase 1 project plan. 10 points
  3. Information provided clearly demonstrates that the project team has the required management and technological skill sets and experience to deliver the Phase 1 project plan. 20 points
Question 8: Inclusivity

If your business were to receive funding from Innovative Solutions Canada, describe what actions (e.g., recruitment strategy, internships, co-op placements, etc.) might be taken in Phase 1 to support the participation of under-represented groups (e.g., women, youth, persons with disabilities, Indigenous people, visible minorities) in the research and development of the proposed solution. Each Bidder in their response to this question must focus only on describing relevant programs, policies, or initiatives that it currently has in place or would put in place to support the R&D effort in Phase 1.

Note: Do not provide any personal information of individuals employed by your company or that of your subcontractors in the response.

Evaluation Schema (Point-Rated)
  1. No description and/or concrete examples of actions provided that would be taken to encourage greater participation of under-represented groups. 0 points
  2. A description and concrete examples of actions to encourage greater participation of under-represented groups provided. 5 points
Question 9: Phase 1 Financial Proposal

Demonstrate a realistic financial proposal for the Phase 1 project plan by completing the table.

Evaluation Schema (Point-Rated)
  1. Insufficient information provided and/or information provided significantly lack credibility. Does not demonstrate a realistic financial proposal for the Phase 1 project plan. 0 points
  2. Information is provided but some costs lack credibility and/or are unclear for the Phase 1 project plan. 7.5 points
  3. Information provided contains credible elements to clearly demonstrate a realistic financial proposal for the Phase 1 project plan. 15 points
Question 10: Phase 1 Financial Controls, Tracking and Oversight

Describe the financial controls, tracking and oversight that will be used to manage the public funds throughout Phase 1. Bidders should indicate if an individual or firm will be managing the public funds and provide their credentials and/or relevant experience.

Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate the Bidder's ability to manage public funds in Phase 1. 0 points
  2. Information provided is vague and/or contains gaps. The Bidder has some controls, tracking and/or oversight in place to manage the public funds in Phase 1. 5 points
  3. Information provided clearly demonstrates that the Bidder has strong financial controls, tracking and oversight to manage public funds in Phase 1. 10 points
Question 11: Phase 2 Overview

Demonstrate a realistic overview for the prototype development plan if selected to participate in Phase 2.

Responses should include:

  • key tasks
  • estimated cost for materials
  • human resources
  • project risks and mitigation strategies

Note: A more detailed proposal will be requested if selected to participate in Phase 2.

Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate that the Bidder has contemplated a realistic overview for the Phase 2 prototype development. 0 points
  2. Information provided demonstrates a conceivably realistic overview for Phase 2 prototype development, however there are gaps and/or the strategy is vague. 6 points
  3. Information provided demonstrates that the Bidder has a clear and realistic overview. 12 points
Question 12: Commercialization Approach

Demonstrate a realistic overall commercialization approach/business model that can successfully take the technology/service to market, and how the technology/service will help you develop and sell other products.

Responses should include:

  • Target markets (excluding Government of Canada)
  • Non-ISC funding sources
  • Transition to a commercially-ready product or service
  • Any other indicators of commercial potential and commercial feasibility

Note: A more detailed proposal will be requested if selected to participate in Phase 2 or the Testing Stream.

Evaluation Schema (Point-Rated)
  1. Insufficient or no information provided to demonstrate that the proposed solution has commercial potential. 0 points
  2. Some information provided to demonstrate that the proposed solution has commercial potential, however there are gaps in the commercialization approach. 6 points
  3. A realistic commercialization approach is provided that demonstrates that the proposed solution has commercial potential. 12 points
Question 13: Resulting Benefits to Canada

Describe the benefits that could result from the commercialization of the proposed solution. Bidders should consider the potential benefits using the following three categories and provide justification for each claim:

  1. Innovation Benefits: Expected contribution towards the enhancement or development of new industrial or technological innovations within your firm. Responses could include: potential spillover benefits, creation of intellectual property, impact on productivity of the new technology, etc.
  2. Economic Benefits: Forecasted impact on the growth of Canadian firms, clusters and supply chains, as well as its expected benefits for Canada's workforce. Responses could include: number of jobs created, number of high-paying jobs, investment in Canada's economy, etc.
  3. Public Benefits: Expected contribution to the broader public to the degree that the solution is expected to generate social, environmental, health, security or other benefits to Canada. Responses could include: solution-related environmental benefits, solution-related accessibility benefits, and solution-related impact on Indigenous communities.
Evaluation Schema (Point-Rated)
  1. Innovation Benefits
    Benefit not identified or insufficient claim of benefit. 0 points
    Benefit has marginal increment or limited justification. 1 point
    Benefit is significant and well justified. 2 points
  2. Economic Benefits
    Benefit not identified or insufficient claim of benefit. 0 points
    Benefit has marginal increment or limited justification. 1 point
    Benefit is significant and well justified. 2 points
  3. Public Benefits
    Benefit not identified or insufficient claim of benefit. 0 points
    Benefit has marginal increment or limited justification. 1 point
    Benefit is significant and well justified. 2 points

Questions and answers

All incoming questions regarding this specific challenge should be addressed to solutions@ised-isde.gc.ca.

All enquiries must be submitted in writing no later than ten calendar days before the Challenge Notice closing date. Enquiries received after that time may not be answered.

You can also consult the Frequently asked questions about the Innovative Solutions Canada Program.

A glossary is also available.

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