canada's opportunity: adopting life cycle approaches for sustainable development

LIfE CYCLE AppROACHEs MINIsTERIAL

REfEREncE cAnADAS OPPORTUnITY: ADOPTInG LIfE cYcLE APPROAcHES fOR SUSTAInABLE DEvELOPmEnT

A REPORT BY

THE NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY

NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E

LIfE cYcLE APPROAcHES fOR SUSTAInABLE DEvELOPmEnTA LIfE CYCLE AppROACH Is A sYsTEMATIC wAY Of LOOkINg AT THE LIfE Of A pRODUCT, TECHNOLOgY, OR pROCEss. BY IDENTIfYINg AND UNDERsTANDINg THE INpUTs AND IMpACT s THAT ExIsT THROUgHOUT LIfE CYCLEs, wE ARE BETTER ABLE TO MEAsURE AND REDUCE AssOCIATED COsTs TO OUR ECONOMY AND ENVIRONMENT

National Round Table on the Environment and the Economy, 2012 All rights reserved. No part of this work covered by the copyright herein may be reproduced or used in any form or by any means graphic, electronic or mechanical, including photocopying, recording, taping or information retrieval systems without the prior written permission of the publisher. Library and Archives Canada Cataloguing in Publication National Round Table on the Environment and the Economy (Canada) Canadas Opportunity: Adopting Life Cycle Approaches for Sustainable Development Issued also in French under title: Perspectives pour le Canada : adopter une approche axe sur le cycle de vie lappui du dveloppement durable. Includes bibliographical references. Available also on the Internet. ISBN 978-1-100-20676-9 Cat. no.: En134-56/2012E-PDF 1. 2. 3. I. II. Sustainable development--Government policy--Canada. Sustainable development--Canada. Sustainable development--Decision making. Title. Title: Adopting life cycle approaches for sustainable development. 338.97107 C2012-980107-0

National Round Table on the Environment and the Economy 344 Slater Street, Suite 200 Ottawa, Ontario Canada K1R 7Y3 T 613 - 992-7189 F 613 - 992-7385 E [email protected] W www.nrtee-trnee.ca

Disclaimer: The views expressed in this document do not necessarily represent those of the organizations with which individual Round Table members are associated or otherwise employed. The NRT strives for consensus but does not demand unanimity. The NRTs deliberations included vigorous discussion and debate reflecting diversity of opinion.

HC120 E5 N37 2012

Concept/Design: Quatuor Communication with the participation of Vixo Technologies Suggested citation: Canada. National Round Table on the Environment and the Economy. (2012). Canadas Opportunity: Adopting Life Cycle Approaches for Sustainable Development

AcknOwLEDGEmEnTSThe National Round Table on the Environment and the Economy (NRT) would like to thank the many experts, stakeholders, consultants and government officials that informed the research and convening that helped shape this report. We would like to thank the members of the Expert Advisory Committee for their support and guidance throughout the project. Their advice on the scope of the research and report focus was invaluable. As part of our convening, we heard from more than 100 stakeholders from the Government of Canada, private sector, NGOs and academia in seven sessions. Many thanks to the people who took the time to participate in these sessions, whose insight were instrumental in shaping our research findings. We would like to thank the consultants who helped the NRT conduct this research. In particular, thanks go to Demeter Consulting, ICF Marbek and Stratos Inc. for their assistance with some of the stakeholder sessions and for their contributions to the research findings. Special thanks to Stefanie Bowles (Policy Horizons Canada), Kevin Brady (Demeter Consulting), Edouard Clment (Quantis) and David Smith (Sobeys Inc.) for reviewing a draft version of this report. The NRT would like to acknowledge the efforts of the secretariat staff in the research and convening that made this report possible. Many thanks go to Denise Edwards, administrative assistant, for the organization of many stakeholder and expert sessions. The communications team Marie-Jose Lapointe, Tony Bgin, Edwin Smith, Richard Pilon and Nadra Meigag provided support to the project and managed the design and production of the report. Finally, thank you to Hilary Davies, Sandeep Pandher, Liza Campbell and Ren Drolet for their significant contributions to the research, analysis and writing of the report.

mESSAGE fROm THE vIcE-cHAIRAs Vice-Chair of the National Round Table on the Environment and the Economy, I am pleased to present Canadas Opportunity: Adopting Life Cycle Approches for Sustainable Development. This report helps Canadians understand how Life Cycle Approaches can be used to maintain and enhance economic competitiveness and environmental stewardship. Life Cycle Approaches allow us to understand and act upon both economic and environmental risks and opportunities for Canada. The message is clear - we need to act now to avoid these risks and take advantage of these opportunities. Action is needed in both the public and private sectors to ensure Canadas growth is sustainable.

Canadas Opportunity: Adopting Life Cycle Approches for Sustainable Development sets out recommendations on ways Canada could advance the domestic use of Life Cycle Approaches to ensure it is economically and environmentally healthy for generations to come.

R.W. Slater, CM, PH.D. NRT Vice-Chair

mESSAGE fROm THE PRESIDEnT AnD cEOLife Cycle Approaches to sustainable development are increasingly becoming the gold standard for assessing the economic and environmental sustainability of a product or policy. They help companies identify cost savings and governments make better long-term policy decisions that integrate the environment and economy together. Canadas competitors are taking them on board; we need too also. The NRTs report, Canadas Opportunity: Adopting Life Cycle Approaches for Sustainable Development, sets out the risks and opportunities presented by life-cycle approaches. We show how companies and governments are embedding Life Cycle Approaches in their operations and decisions. We identify clear risks to Canadas competitiveness and environmental reputation if we dont take steps to use Life Cycle Approaches for our own advantage. Increasingly, market access for our resources and goods will be at risk if we dont act. We show how business and government can collaborate to enhance economic competitiveness and foster greater environmental stewardship. Finally, we set out priority actions we can and should take to move ourselves ahead. The Government of Canada asked the NRT to assess Life Cycle Approaches for sustainable development to assist them in their consideration of the issue. Our report provides a focused, cost-effective means of doing so, based on research and input from Canadian companies and experts.

David McLaughlin NRT President and Chief Executive Officer

ABOUT USThrough the development of innovative policy research and considered advice, our mission is to help Canada achieve sustainable development solutions that integrate environmental and economic considerations to ensure the lasting prosperity and well-being of our nation. Emerging from the famous Brundtland Report, Our Common Future, the NRT has become a model for convening diverse and competing interests around one table to create consensus ideas and viable suggestions for sustainable development. The NRT focuses on sustaining Canadas prosperity without borrowing resources from future generations or compromising their ability to live securely. The NRT is in the unique position of being an independent policy advisory agency that advises the federal government on sustainable development solutions. We raise awareness among Canadians and their governments about the challenges of sustainable development. We advocate for positive change. We strive to promote credible and impartial policy solutions that are in the best interest of all Canadians. We accomplish that mission by fostering sound, well-researched reports on priority issues and by offering advice to governments on how best to reconcile and integrate the often divergent challenges of economic prosperity and environmental conservation. The NRT brings together a group of distinguished sustainability leaders active in businesses, universities, environmentalism, labour, public policy, and community life from across Canada. Our members are appointed by the federal government for a mandate of up to three years. They meet in a round table format that offers a safe haven for discussion and encourages the unfettered exchange of ideas leading to consensus. We also reach out to expert organizations, industries, and individuals to assist us in conducting our work on behalf of Canadians. The NRTEE Act underlines the independent nature of the Round Table and its work. The NRT reports, at this time, to the Government of Canada and Parliament through the Minister of the Environment. The NRT maintains a secretariat, which commissions and analyzes the research required by its members in their work.

LIST Of mEmBERSNRT Vice-Chair Robert SlaterAdjunct Professor Environmental Policy Carleton University Ottawa, Ontario

Christopher HilkenePresident Clean Water Foundation Toronto, Ontario

Franklin HoltforsterPresident and Chief Executive Officer MHPM Project Managers Inc. Ottawa, Ontario

NRT Vice-Chair Mark ParentFormer Nova Scotia Minister of Environment and Labour Canning, Nova Scotia

Robert KulhawyExecutive Chairman Calco Environmental Group Calgary, Alberta

David John BishopPartner McKercher LLP Regina, Saskatchewan

Donald MacKinnonPresident Power Workers Union Toronto, Ontario

The Honourable Pauline Browes, P.C.Director Waterfront Regeneration Trust Toronto, Ontario

Robert MillsInternational Advisor, Globe International Senior Advisor, Plasco Energy Group Red Deer, Alberta

Dianne CunninghamDirector Lawrence National Centre for Policy and Management University of Western Ontario London, Ontario

Richard ProkopankoDirector Government Relations Rio Tinto Alcan Inc. Vancouver, British Columbia

John V. HacheyLachine, Qubec

NRT President and CEO David McLaughlin

Timothy R. HaigDirector and Past President and CEO BIOX Corporation Oakville, Ontario

NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND CONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AN BLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRONMENT AND TH NAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE ENVIRO NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMY NATIONAL ROUND TABLE ON THE E

nATIOnAL ROUnD TABLE On THE EnvIROnmEnT AnD THE EcOnOmY

OUR PROcESS IS THE wAY wE wORkfInDInG SUSTAInABLE PATHwAYS

RESEARcHWe rigorously research and conduct high quality analysis on issues of sustainable development. Our thinking is original and thought provoking.

cOnvEnEWe convene opinion leaders and experts from across Canada around our table to share their knowledge and diverse perspectives. We stimulate debate and integrate polarities. We create a context for possibilities to emerge.

ADvISEWe generate ideas and provide realistic solutions to advise governments, Parliament and Canadians. We proceed with resolve and optimism to bring Canadas economy and environment closer together.

TABLE Of cOnTEnTSLIsT Of fIgUREs LIsT Of TABLEs LIsT Of ABBREVIATIONs ExECUTIVE sUMMARY 1.01.1 1.2 1.3 1.4

15 15 16 18 28

INTRODUCTIONCANADA NEEDs TO ADOpT LIfE CYCLE AppROACHEs TO sUsTAINABLE DEVELOpMENT REpORT pURpOsE REpORT sTRUCTURE NRT REsEARCH AND CONVENINg AppROACH Convening Research

30 33 33 34 34 34 35

1.5

CONCLUsION

2.02.1 2.2

UNDERsTANDINg LIfE CYCLE AppROACHEswHAT ARE LIfE CYCLE AppROACHEs AND wHY ARE THEY NEEDED? A fRAMEwORk fOR LIfE CYCLE AppROACHEs Life cycle concepts Life cycle programs Life cycle tools Life cycle data and information

3638 42 44 44 45 47 47 49

2.3 2.4

ExAMpLEs Of LIfE CYCLE AppROACHEs CONCLUsION

3.03.1 3.2

TRENDs IN LIfE CYCLE AppROACHEsDRIVERs fOR THE ADOpTION Of LIfE CYCLE AppROACHEs INTERNATIONAL UsE Of LIfE CYCLE AppROACHEs Public sector Private sector International organizations

5052 53 53 55 56 57 57 61 63 67

3.3

DOMEsTIC UsE Of LIfE CYCLE AppROACHEs Public sector (federal) Public sector (provinces and territories) Private sector

3.4

CONCLUsION

4.0 gAINs fROM LIfE CYCLE AppROACHEs fOR gOVERNMENT AND BUsINEss4.1 INTERNATIONAL COMpETITIVENEss Trade restrictions Lack of market access 4.2 pUBLIC sECTOR LEADERsHIp Enhancing efficiencies in internal operations Consideration of environmental and economic attributes in policy decisions 4.3 fIRM COMpETITIVENEss Enhancing supply chain efficiencies Enhancing internal operation efficiencies 4.4 CONCLUsION

6872 72 77 79 79 81 82 82 84 87

5.05.1

pRIORITY AREAs fOR gOVERNMENT Of CANADA ACTIONCONDITIONs fOR THE sUCCEssfUL IMpLEMENTATION Of LIfE CYCLE AppROACHEs Awareness of benefits Capacity and expertise Life cycle data and information Common standards

88

90 90 91 92 93

5.2

pRIORITY AREAs fOR ACTION Canada needs to develop capacity and expertise in Life Cycle Approaches Canada needs to develop information resources that reflect the Canadian reality Canada needs to play a proactive role in the development of national and international Life Cycle Approach standards The Government of Canada needs to apply Life Cycle Approaches internally to realize economic and environmental efficiencies

94 94 95 98 100 101

5.3

CONCLUsION

6.0 CONCLUsIONs AND RECOMMENDATIONs6.1 6.2 6.3 MOVINg AHEAD RECOMMENDATIONs gOVERNANCE fOR IMpLEMENTATION Of RECOMMENDATIONs

102104 105 110

7.0

AppENDICEsAppENDIx 1: sTAkEHOLDER pARTICIpATION Members of the Expert Advisory Committee Senior officials meeting Public sector workshop Private sector meeting Policy responses meeting Senior officials meeting AppENDIx 2: gLOssARY AppENDIx 3: ExAMpLE Of A spECIfIC LIfE CYCLE AssEssMENT COMpARIsON Of HAND DRYINg OpTIONs AppENDIx 4: sUMMARY Of CHALLENgEs fACED BY THE pUBLIC AND pRIVATE sECTORs

114116 116 116 117 119 120 121 122 124 127

ENDNOTEs REfERENCEs

131 133

LIST Of fIGURESfigure 1 figure 2 figure 3 figure 4 figure 5 figure 6 figure 7Product life cycle stages Integrating Life Cycle Approaches in government policy and program development A framework for Life Cycle Approaches Illustration of the trends in Life Cycle Approaches presented in Chapter 3 Rationale for the uptake of Life Cycle Approaches in Canada Life Cycle Thinking in assessing environmental effects of free trade agreements Recommendations and key actions for the Government of Canada to respond to Life Cycle Approach-related risks and opportunities in Canada Governance for implementation of recommendations Suggested timeline for implementation Life cycle system boundary and key reference flows for the conventional hand dryer Relationship between LCI and impact assessment categories Total life cycle impacts of four hand drying options 38 40 43 52 71 76

106 112 113 124 125 126

figure 8 figure 9 figure 10 figure 11 figure 12

LIST Of TABLESTable 1 Table 2 Table 3 Table 4Summary of Life Cycle Approaches case studies in report Examples of Government of Canada initiatives related to Life Cycle Approaches Life Cycle Approach-related risks and opportunities in the supply chain Summary of challenges identified during National Round Table on the Environment and the Economys research and convening 48 58 83 127

LIST Of ABBREvIATIOnS10-Yfp10-year Framework of Programmes Environmental Assessment Method

LCI LCM LCsA LCT LEED MfA NRC NRCan NRT O&M pCR pwgsC REACH Rfs2 sETAC sLCA sCp sMEs TCA UNEp

Life Cycle Inventory Life Cycle Management Life Cycle Sustainability Analysis Life Cycle Thinking Leadership in Energy and Environmental Design Material Flow Analysis National Research Council Natural Resources Canada National Round Table on the Environment and the Economy Operations and Maintenance Product Category Rule Public Works and Government Services Canada Registration, Evaluation, Authorisation and Restriction of Chemicals Renewable Fuel Standards Society for Environmental Toxicology and Chemistry Social Life Cycle Assessment Sustainable Consumption and Production Small and Medium Enterprises Total Cost Accounting United Nations Environment Programme Sustainable Development

BREEAM Building Research Establishments CCME CEC CfL CIRAIgCanadian Council of Ministers of the Environment Commission for Environmental Cooperation Compact Fluorescent Light bulb Interuniversity Research Centre for the Life Cycle of Products, Processes and Services Design for the Environment Department of Foreign Affairs and International Trade Environment Canada Cycle Assessment

DfE DfAIT EC

EIO-LCA Economic Input - Output Life EpA EpDs Epp EpR EU goC IC IsO LCA LCC LCfsEnvironmental Protection Agency Environmental Product Declarations Environmentally Preferable Purchasing Extended Producer Responsibility European Union Government of Canada Industry Canada International Organization for Standardization Life Cycle Assessment Life Cycle Costing Low Carbon Fuel Standard

wBCsD World Business Council for wRIWorld Resources Institute

ExEcUTIvE SUmmARY

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Todays economy is global, interdependent, and complex. Nowhere is this more apparent than at the intersection of the economy and the environment. Environmental stewardship goes hand-in-hand with economic competitiveness. Using resources efficiently from extraction to consumption is no longer a simple matter of local decisions; it is increasingly a case of global standards. Canada is already affected by this development and will be increasingly affected in the future. As a trading nation, and a resource-rich country intent on exporting commodities, our economic welfare depends on open access to foreign markets and mutually-recognized international rules for trade and investment. With environmental concerns becoming an increasing determinant of the terms of trade, we need to build up our capacity and step up our expertise in integrating the environment and the economy in business and government decisionmaking that means embracing Life Cycle Approaches to sustainable development. Life Cycle Approaches are analytical tools geared to support enhanced economic decision-making through a fuller accounting of associated environmental costs. They provide practitioners with much-needed tools that could play a critical role in elevating Canada as a global leader in sustainable development practices. Governments, companies, and organizations across the world are using Life Cycle Approaches to address current and emerging global economic and environmental issues. Canada used to be a leader in the development of Life Cycle Approaches and now needs to keep pace with the global trend. The increased importance of Life Cycle Approaches domestically, regionally

and internationally has real implications for both Canadas private and public sectors. This report elaborates on the need for a systemic policy response from the federal government to meet this emerging reality and better prepare Canadian businesses to engage with it. It provides a tour dhorizon of Life Cycle Approach terms and trends, shows where business and government can gain from its application, and offers key priorities for action to move us forward. In preparing the report, the National Round Table on the Environment and the Economy (NRT) brought business leaders and experts together. We engaged officials across federal government departments. We sought international perspectives on life cycle developments. We commissioned original research on what this means to Canadas private and public sectors. Finally, we distilled this into what Canada can and should do practically to both respond and lead in this area. Our recommendations are intended to help the Government of Canada (GoC) and other relevant stakeholders in three ways: Assessing the contribution of Life Cycle Approaches to economic prosperity and environmental sustainability in Canada, Analyzing how decision makers need to consider Life Cycle Approaches when developing public policies designed to promote economic and environmental benefits for Canada, and, Advising what role the GoC should play in facilitating successful implementation of Life Cycle Approaches and designing public policy response(s).

Canadas Opportunity: Adopting Life Cycle Approaches for Sustainable Development

21

Globally, Europe is leading the way in the adoption of Life Cycle Approaches within both the public and private sectors. Regionally, the United States, Canadas neighbour and biggest trading partner, has seen increased adoption of Life Cycle Approaches in recent years. Domestically, the private sector is leading the way in Canada with respect to Life Cycle Approaches. The public and private sectors in Canada need to adopt Life Cycle Approaches to ensure better integration of environmental and economic goals. However, efforts in Canada related to Life Cycle Approaches are fragmented and lack an overall vision or framework to guide their application in a consistent manner. We need a common understanding of Life Cycle Approaches to move the conversation forward and, provide an accurate assessment of their strengths and limitations. The NRT has developed a framework for Life Cycle Approaches that categorizes them into four groups: concepts, programs, tools, and data and information. This framework provides a common understanding of the basis on which the GoC and others can base future dialogues about Life Cycle Approaches in Canada. The Canadian public and private sectors are exposed to clear economic and environmental risks and opportunities related to Life Cycle Approaches. Our analysis delineated three goals that could be better achieved through the application of Life Cycle Approaches: (1) international competitiveness, (2) public sector leadership, and, (3) firm competitiveness. Our report presents a contemporary analysis complemented by case studies to illustrate and substantiate these key risks and opportunities within both the private and public sectors.

A continued passive attitude towards the adoption of Life Cycle Approaches creates risks that can have only detrimental impacts on Canadas economic competitiveness. These will manifest themselves through non-tariff trade barriers imposed by foreign countries and restricted market access because of private sector supply-chain requirements Canadian exports of commodities and manufactured goods will be affected. On the other hand, economic gains can result from adopting Life Cycle Approaches. These gains include better supply-chain performance, internal operation efficiencies, and increased institutional capacity that further enhance innovation. As Life Cycle Approaches also support environmental stewardship by compelling firms to increase efficiencies in their production processes and internal operations, and consider environmental factors in their decision making reduced environmental impacts will accrue across a multitude of attributes including air, water, toxics and waste. There are a number of conditions that need to be in place to advance the application of Life Cycle Approaches in Canada. We identified four key conditions relevant to both the public and private sectors in Canada: Capacityandexpertise Awarenessofbenefits Lifecycledataandinformation Commonstandards

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PRIORITY AREAS fOR AcTIOncAnADA nEEDS TO DEvELOP cAPAcITY AnD ExPERTISE In LIfE cYcLE APROAcHESA collaborative knowledge-sharing model should be created to provide an opportunity for practitioners from the private and public sectors to share knowledge and expertise with each other. In the public sector, training and guidance should be provided to people implementing Life Cycle Approaches (e.g., asset management, Regulatory Impact Analysis Statements, and Strategic Environmental Assessments) and senior decision makers. In the private sector, support needs to be given to small and medium enterprises (SMEs) that lack the capacity, expertise, and, in most cases, awareness of Life Cycle Approaches.

cAnADA nEEDS TO PLAY A PROAcTIvE ROLE In DEvELOPInG nATIOnAL AnD InTERnATIOnAL LIfE cYcLE APPROAcH STAnDARDSCanada should be involved in multilateral efforts to create standards for potential trade-restricting measures such as product footprint standards and eco-labels. The GoC should support and oversee the development of robust Product Category Rules (PCRs) by third parties. The GoC should participate in the management of a uniform labelling program or Environmental Product Declarations (EPDs) for multiple environmental attributes for a product or class of products that meets a designated standard.

THE GOvERnmEnT Of cAnADA nEEDS TO APPLY LIfE cYcLE APPROAcHES InTERnALLY TO REALIzE EcOnOmIc AnD EnvIROnmEnTAL EffIcIEncIESThe GoC should functionally integrate its acquisition, maintenance, and disposal functions by developing budgeting and management practices that are more conducive to Life Cycle Approaches. The GoC should use performance information to conduct benchmarking and then build and bolster the business case for green procurement and for asset management based on Life Cycle Approaches in general.

cAnADA nEEDS TO DEvELOP InfORmATIOn RESOURcES THAT REfLEcT THE cAnADIAn REALITYA Canadian Life Cycle Inventory Database should be created to provide access to important information for both the private and public sectors. The database would allow the private sector to respond to trade and market access requirements related to Life Cycle Approaches. The database would support the integration of Life Cycle Approaches into government internal operations and decision making.


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REcOmmEnDATIOnSWe need public policies that facilitate increased information sharing about the benefits of Life Cycle Approaches, provide guidance on best practices, and increase collaboration in data gathering, and analysis. The governments response needs to focus on key life cycle issues and be staged over time. Short-term responses will counter immediate risks to international competitiveness in the areas of trade and market access. Longerterm responses will foster enhanced economic efficiencies and related environmental benefits of Life Cycle Approaches by increasing their adoption in the public and private sectors. In government, this includes increasing efficiencies in internal operations and integrating Life Cycle Approaches when making decisions about new policies. Increased efficiencies in internal operations and throughout the supply chain should be targeted in the private sector. As a first step, the government should work with the private sector to identify the current non-tariff trade barriers where Life Cycle Approaches could help address the situation. It should also initiate government-wide discussions to identify areas where costs savings and environmental gains could be achieved within the public service.

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REcOmmEnDATIOnS AnD kEY AcTIOnS fOR THE GOvERnmEnT Of cAnADA

GOALSInternational Competitiveness Public Sector Leadership Firm Competitiveness

REcOmmEnDATIOnSIncrease government knowledge of life cycle issues & act immediately to maintain access to foreign markets Help Canadian companies acquire knowledget & information required to maintain access to foreign & domestic markets Proactively engage at multiple levels on issues related to Life Cycle Approaches Show leadership in the application of Life Cycle Approaches to internal operations & policy decision making

kEY AcTIOnSBuild a stronger inter nal knowledge base on Life Cycle Approaches in key federal govern ment departments Identify products & commodities most likely to be subject to restrictive standards based on Life Cycle Approaches Oversee system for thirdparty develop ment of Product Category Rules Engage in discussions on creation & devel opment of Canadian Life Cycle Inventory database Identify government departments & agen cies with expertise & data relevant to data base development Develop programs & initiatives to support small & medium enterprises use of Life Cycle Approaches Identify priority commodities & products for Canada Engage in discussions with industry & inter national organizations on life cycle method ologies & provide related guidance for Canada Proactively engage in multilateral & bilateral discussions with key trade partners Create a government centre of expertise to inform the application of life cycle-related activities across departments Engage in crossdepartmental discussions to review existing policies & practices that may impede the use of Life Cycle Thinking in decision making Develop training for senior government officials


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The NRT recommends that the following specific actions be taken:

THE GOc nEEDS TO IncREASE ITS knOwLEDGE Of ISSUES RELATED TO LIfE cYcLE APPROAcHES AnD AcT ImmEDIATELY TO mAInTAIn AccESS TO mARkETS In fOREIGn jURISDIcTIOnS.Key actions:

THE GOc nEEDS TO HELP cAnADIAn cOmPAnIES AcqUIRE THE knOwLEDGE AnD InfORmATIOn REqUIRED TO RESPOnD TO THE DEmAnD fOR LIfE cYcLE InfORmATIOn AnD mAInTAIn mARkET AccESS.Key actions:

Build a stronger internal knowledge base of Life Cycle Approaches in key federal government departments including Environment Canada, Department of Foreign Affairs and International Trade, Industry Canada, Finance Canada, Natural Resources Canada, and the Privy Council Office; Identify, in collaboration with industry, which products and commodities are likely to be subject to restrictive standards based on Life Cycle Approaches such as Environmental Product Declarations (EPDs) or content requirements; and Put in place a system where robust Product Category Rules (PCRs) are developed by third parties with the oversight of the federal government (certify the certifier principle).

Engage in a multi-stakeholder discussion about the creation and development of a Canadian Life Cycle Inventory (LCI) database accessible to governments, industry sectors, and firms; look at building on current efforts underway across the country, in particular, work being done in Qubec by the Inter-university Research Centre for the Life Cycle of Products, Processes and Services (CIRAIG); Identify departments and agencies within the GoC with expertise and data relevant to the development of the database such as Statistics Canada, Natural Resources Canada and National Research Council; and Develop initiatives aimed at supporting SMEs that want to get involved in Life Cycle Approaches but lack the capacity and expertise.

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cAnADA nEEDS TO PROAcTIvELY EnGAGE AT mULTIPLE LEvELS On LIfE cYcLE-RELATED ISSUES.Key actions:

Identify where Canadian economic interests and Canadian companies are at risk, focusing on priority commodities, products, and sectors; this will enable the creation of targeted action plans; Engage in discussions with industry and international organizations to ensure that Life Cycle Assessment is applied consistently in a way that benefits Canada; the federal government should play a strong role by providing guidance and support for developing life cycle methodologies that can be adopted within an industry sector and then moved to international application; and,

Proactively engage in multilateral and bilateral discussions with key trade partners, particularly the United States and the European Union. This will reduce the risks of having Canadian goods and commodities subject to standards established by foreign interests that are not consistent with our own. The aim is to first, ensure Canadian economic interests are not penalized by foreign rules and regulations targeting or side-swiping our commodities and goods, and second to build a trading framework based on mutually-recognized life cycle science, data, and information.


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THE GOc nEEDS TO SHOw LEADERSHIP In THE APPLIcATIOn Of LIfE cYcLE APPROAcHES TO ITS Own InTERnAL OPERATIOnS AnD POLIcY DEcISIOn mAkInG.Key actions:

Create a designated centre of expertise within the GoC with a clear mandate to inform and potentially coordinate the application of life cycle activities across government departments; Engage in cross-departmental discussions to review existing policies and practices that may impede the use of Life Cycle Thinking in decision making; areas for discussion would include buildings and assets management, financial systems, and smart regulatory development; and Build knowledge and deliver training for government officials, including senior management and key officials in designated departments and central agencies, to move these initiatives forward with appropriate performance management incentives.

The GoC response to the above mentioned areas should be a concerted response with the private sector and involve other stakeholders such as nongovernmental organization and academics. The NRT recommends that the GoC establish a Life Cycle Approaches Task Force, which would address issues of direct and indirect relevance to the government. Direct issues include capacity building and coordination of Life Cycle Approaches related to GoC internal operations and decision making, while indirect issues mainly include liaison with and support to the private sector. It is recommended that the Task Force be established as a temporary measure, for a period of 24 to 36 months. The Task Force would liaise with and get advice from a multi-stakeholder External Advisory Panel that would oversee three Working Groups mandated to create and develop future partnership models as needed to develop a LCI database, standards, and SME capacity building.

1.1CANADA NEEDs TO ADOpT LIfE CYCLE AppROACHEs TO sUsTAINABLE DEVELOpMENT

1.5CONCLUsION

1.3 1.2REpORT pURpOsE REpORT sTRUCTURE

1.4NRT REsEARCH AND CONVENINg AppROACH

1.0 InTRODUcTIOnTHIs CHApTER pROVIDEs THE CONTExT fOR LIfE CYCLE AppROACHEs IN CANADA AND AROUND THE wORLD. IT CLARIfIEs THE pURpOsE AND sTRUCTURE Of THIs REpORT AND DEsCRIBEs THE NATIONAL ROUND TABLE ON THE ENVIRONMENT AND THE ECONOMYs (NRT) REsEARCH AND CONVENINg pROCEss THAT LED TO THE REpORT.

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1.1 cAnADA nEEDS TO ADOPT LIfE cYcLE APPROAcHES TO SUSTAInABLE DEvELOPmEnTLife Cycle Approaches are one of the core tools that can be used to advance sustainable development. Around the world, businesses, countries and international organizations are increasingly creating policies and programs that include aspects of Life Cycle Approaches to help integrate economic and environmental dimensions in the decision-making process. The need to apply tools like Life Cycle Approaches is growing as the number and severity of environmental and socio-economic pressures mount globally.

The NRT defines Life Cycle Approaches as a group of concepts, programs, tools, and data that involve identifying, understanding, and reducing inputs (economic or environmental) and their associated impacts generated throughout the entire life cycle of a product, technology, or process.Canada was a leader in conceptual and practical applications related to Life Cycle Approaches in the 1990s. At that time, the Government of Canada (GoC) promoted and provided guidance on the adoption of Life Cycle Management (LCM) in the private sector,1 created a publicly accessible Life Cycle Inventory (LCI) Database (called the Canadian Raw Material Database) and contributed to the creation of International Organization for Standardizations (ISO) Life Cycle Assessment (LCA) standards. Since this time, Canada has not actively adopted Life Cycle Approaches in a comprehensive manner and now needs to keep pace with the global trend. This lack of adoption of Life Cycle Approaches exposes Canada to economic risks, such as the inability to respond to formal regulatory demands of importing countries for life cycle-based labelling or life cyclebased product requirements. Canada is starting to encounter these risks with our largest trading partner, the United States (U.S.), and with European Union (EU) member states, in several sectors including oil and gas (e.g., fuel standards and directives), aerospace, electronics, and building and construction. Canada risks serious harm to its national economic interests by not proactively developing frameworks nor engaging in initiatives related to Life Cycle Approaches domestically and globally.


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Already significant are the market requirements placed on Canadian firms by other firms requiring life cycle information as a condition of doing business. Businesses around the world are increasingly using Life Cycle Approaches to respond to these requirements and other related risks. Life Cycle Approaches also offers opportunities such as cost savings through reduced resource use. Businesses that respond to these opportunities and risks related to Life Cycle Approaches have an advantage over their competitors. Businesses that use Life Cycle Approaches for economic purposes also incur related environmental benefits, thus improving the overall health of the global environment. Life Cycle Approaches are a method to target the areas of greatest impact in the development of products, processes, or technologies known as hot spots. It allows private firms to realize more immediate economic gains and enhances future planning capabilities by foreseeing areas of long-term economic and environmental concerns. This will become even more important as two anticipated changes materialize: (1) external costs of environmental impacts are likely to become more internalized within firm-level costs, and, (2) resource scarcity is likely to drive up costs of commodities and create supply-chain disruptions. Life Cycle Approaches have the ability to support firms in their business decision making by integrating cost-effective measures from product design along the supply chain right through to waste and disposal. Several economic and environmental drivers are increasing the adoption of Life Cycle Approaches across the world. Numerous countries are facing

ongoing serious economic crises and uncertainty threatening competitiveness and international trade. To remain globally competitive, private sector access to international and domestic markets is critical, as is innovation to attain a competitive advantage. Many governments are also operating in an environment of fiscal restraint, leading to increased scrutiny of spending with the goal of decreasing overall public sector spending. Decreasing regulatory burdens on firms is also a priority across many jurisdictions, and yet the importance of mitigating environmental and social risk is only increasing.

Life Cycle Approaches are one of the core tools that can be used to advance sustainable development.At the same time, other major drivers of change such as increased information flows and a growing global population are presenting new operating challenges. Long and complex value chains are becoming visible and identifiable as more and more information comes online. Demand for environmental and social risk mitigation is increasing as population pressures grow and as awareness of the human health consequences of environmental pollution increases. Recent estimates predict that the worlds population will rise 30% by 2050, resulting in a global population of approximately nine billion people.2 With this growth comes increasing consumption of goods and services. Most goods and services cause environmental degradation or depletion during their life cycle through raw material extraction, manufacturing, transportation, use and disposal. Pollution related to the production and consumption of goods and services is a major issue, which will increase as the worlds population

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continues to grow and consume. Some question whether enough natural resources exist to meet this rise in demand. There is evidence that some countrys current demand is not sustainable in terms of consumption and production and this includes Canada. In a 2007 study of 130 nations, Canada had the seventh largest Ecological Footprint,3 requiring approximately four Earths to sustain Canadas consumption patterns.4 The environment may not be able to endure the impact of this increased consumption of goods. To respond to these global economic and environmental pressures, a number of countries and organizations have created policies and programs that include aspects of, or encourage the use of, Life Cycle Approaches. For example, the United Nations (UN) 10-year Framework of Programmes (10-YFP) on Sustainable Consumption and Production (SCP) * encourages the efficient and sustainable use of resources throughout the entire life cycle to reduce the amount of resources used, as well as the associated environmental impacts. The Marrakech Process is the global initiative that supports the expansion of this framework.5 Many countries, including

those in the EU, have created policies and programs to support this initiative. In 2011, the European Commission created the Resource-efficient Europe initiative, which provides a framework for the development of Resource Efficiency policies.6 In this framework, the life cycle of resource use is considered in the decision-making process and priority setting. The Organisation for Economic Co-operation and Development (OECD) has looked extensively at Sustainable Materials Management (SMM), which uses a Life Cycle Approach to reduce the environmental, economic and social impact of materials. Currently they are working on policies and instruments to promote the uptake of SMM globally.7

Life Cycle Approaches have the ability to support firms in their business decision making by integrating costeffective measures from product design along the supply chain right through to waste and disposal.

*

Sustainable Consumption and Production (SCP) is the use of services and related products, which respond to basic needs and bring a better quality of life while minimizing the use of natural resources and toxic materials as well as the emissions of waste and pollutants over the life cycle of the service or product so as not to jeopardize the needs of future generations (United Nations Environment Programme 2011). The European Commission defines Resource Efficiency as using the Earths natural resources in a sustainable manner (European Commission 2012b). The OECD defines Sustainable Materials Management as an approach to promote sustainable materials use, integrating actions targeted at reducing negative environmental impacts and preserving natural capital throughout the life-cycle of materials, taking into account economic efficiency and social equity (Organisation for Economic Co-operation and Development ND).


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1.2 REPORT PURPOSEThis report has been prepared in response to a request from the Minister of the Environment, on behalf of the GoC, for advice on Life Cycle Approaches from an economic competitiveness and environmental stewardship perspective. Three questions were identified in the Ministerial request: 1. What would be the implications of applying this kind of approach? (i.e., Life Cycle Approaches to enhance environmental sustainability) Is the Life Cycle Approach a useful technique for integrating economic and environmental costs so as to recognize the real value of environmental goods and services? Is there a way to advance a Life Cycle Approach to environment[al] stewardship in Canada that supports economic competitiveness?

1.3 REPORT STRUcTUREThe rest of the report is presented as follows: Chapter 2 provides an overview of the concepts, programs, tools, and data and information included in Life Cycle Approaches with a framework for understanding their roles, as well as key definitions and related terminology for Life Cycle Approaches. Chapter 3 highlights the use of Life Cycle Approaches at the international and domestic levels, in both the public and private sectors, which are of most relevance to Canada. Chapter 4 explores the environmental and economic risks and opportunities related to the uptake of Life Cycle Approaches and provides a rationale for their use in the Canadian public and private sectors. Chapter 5 explores the conditions for successful adoption of Life Cycle Approaches by the private and public sectors in Canada, and identifies priority areas for government action. Chapter 6 presents recommendations for the Government of Canada to support the increased adoption of Life Cycle Approaches in the public and private sectors, which will enhance economic competitiveness and environmental stewardship.

2.

3.

The NRT is pleased to present this report that addresses these questions and includes recommendations designed to create the conditions for progress for Life Cycle Approaches both in the Canadian private sector and within the federal government. Our report will help the GoC understand how Life Cycle Approaches could contribute to long-term sustainability in Canada, determine what role the government could play to facilitate successful implementation of Life Cycle Approaches, and recognize in what context Life Cycle Approaches could lead to short- and long-term benefits.

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1.4 nRT RESEARcH AnD cOnvEnInG APPROAcHThe NRT sought input on this project through a multi-stakeholder research and convening process that informed the analysis, findings, and recommended policy pathway. This process included strategic guidance from an Expert Advisory Committee, stakeholder engagement, and internal and external research.

Life Cycle Approaches within the public and private sectors and to validate the preliminary research findings. A number of convening events were then held to provide an opportunity for stakeholders to comment on our findings and to contribute to our recommendations. This included a round table with senior government officials (Assistant Deputy Ministers and Director Generals), at both the beginning and conclusion of the project. An Expert Advisory Committee provided strategic guidance for the research and convening process through in-person large-group meetings and individual discussions with the NRT. Membership in the Expert Advisory Committee was varied and represented industry, Government of Canada, NGOs, academics, and consultants with expertise related to Life Cycle Approaches. Policy options and directions were also discussed with them. A complete list of members is found in Appendix 1.

cOnvEnInGBilateral meetings, round table sessions, workshops and individual consultations with knowledgeable stakeholders all helped inform the report. The NRT convened more than 100 experts and stakeholders over seven sessions to guide the research for this report. The experts and stakeholders were from several fields, including academia, the federal government, the private sector, and non-governmental organizations (NGOs). Stakeholders initially helped ensure that the direction of the research was relevant based on their perspective of key issues and developments related to Life Cycle Approaches within their sector. For example, bilateral meetings were held with pertinent government departments early on to ensure the NRT was aware of current government use of Life Cycle Approaches. Several round table sessions and workshops followed to further explore the use of

RESEARcHThe NRT commissioned external research for this project. This research explored the drivers, risks, opportunities, and challenges related to the uptake of Life Cycle Approaches in Canada. It investigated these issues in the context of the private sector and presented recommendations on how the Government of Canada could support the uptake of Life Cycle Approaches by Canadian businesses. It also explored these issues related to internal federal operations and decision-making processes and identified recommendations for Government of Canada action within key departments.


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1.5 cOncLUSIOnLife Cycle Approaches are being incorporated by organizations, governments, and companies across the world to address current and growing global economic and environmental issues. Canada was a leader in the use of these approaches a decade and a half ago and now needs to keep pace with this growing global trend. The public and private sectors in Canada will increasingly need to adopt Life Cycle Approaches to ensure that the country is economically competitive and environmentally sustainable. Through this project, the NRT has identified clear risks to the Canadian economy if companies and governments do not consider Life Cycle Approaches as a vital sustainable development tool. In particular, trade and market access risks can already be observed. The private sector takes these very seriously. Addressing these risks should be a priority for the federal government. An enhanced uptake of Life Cycle Approaches by the private and the public sector will increase operational efficiencies, leading to cost savings and environmental gains for governments and companies. Better environmental stewardship can lead to improved economic competitiveness.

2.4CONCLUsION

2.1wHAT ARE LIfE CYCLE AppROACHEs AND wHY ARE THEY NEEDED?

2.2A fRAMEwORk fOR LIfE CYCLE AppROACHEs

2.3ExAMpLEs Of LIfE CYCLE AppROACHEs

2.0 UnDERSTAnDInG LIfE cYcLE APPROAcHESTHIs CHApTER pROVIDEs AN OVERVIEw Of THE spECTRUM Of LIfE CYCLE AppROACHEs, As wELL As A DEsCRIpTION Of kEY TERMINOLOgY UsED IN THE REpORT. A COMpLETE LIsT Of TERMs AND DEfINITIONs Is LOCATED IN AppENDIx 2. THE sTRENgTHs AND LIMITATIONs Of LIfE CYCLE AppROACHEs ARE ALsO DIsCUssED.

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2.1 wHAT ARE LIfE cYcLE APPROAcHES AnD wHY ARE THEY nEEDED?The NRT defines Life Cycle Approaches as a group of concepts, programs, tools, and data that involve identifying, understanding and reducing inputs (economic or environmental) and their associated impacts generated throughout the entire life cycle of a product, technology, or process. Life Cycle Approaches are part of a toolkit for sustainable development. In making decisions, multiple complementary tools should be used to ensure a fully informed judgement. Traditionally, Life Cycle Approaches have focused on environmental inputs and impacts. However, economic and social inputs and impacts can also be examined to understand how a product, technology, or process addresses particular objectives. Figure 1 illustrates the main life cycle stages of a product. At every stage, environmental inputs such as raw materials and energy, economic inputs such as the cost of materials, and social inputs such as employment, may be required. A variety of impacts in the form of outputs may also be generated at each stage. These include environmental outputs such as carbon emissions and waste water, economic outputs such as profit and the cost of waste disposal, and social outputs such as the fair treatment of employees. For the purposes of this report, only environmental and economic inputs and impacts will be discussed.

fIGURE 1. PRODUcT LIfE cYcLE STAGESNatural Resources Incineration and Landfilling Extraction of Raw Materials Recovery Recycling of Materials and Components Reuse Design and production

AT EAcH STAGE, cOnSIDERInPUTS Environmental Economic Social

Disposal

ImPAcTS Environmental Economic Social

Use and Maintenance

packaging and Distribution

Source: Adapted from United Nations Environment Programme No Date (a)


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Life Cycle Approaches have the potential to inform policy and program decision making, as described in the text box below.

INTEgRATION Of LIfE CYCLE AppROACHEs INTO pOLICY AND pROgRAM DECIsION MAkINg

As shown in Figure 2, Life Cycle Approaches could be used in policy and program decision making at four key steps: Step 3 Policy Development, Step 4 Policy Approval, Step 5 Program Development and Step 6 Policy Implementation. Application of Life Cycle Approaches at these important intervention points could lead to enhanced economic efficiency, environmental stewardship, and social benefits for Canada.

The figure demonstrates the life cycle of the federal government policy-making processes and identifies where adjustments could be made to ensure the process is effective and efficient and has built-in accountabilities. It also shows that Life Cycle Approaches can be used to better understand the implications of the intended policy on the products, commodities, or processes that may be affected by the policy.

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fIGURE 2. InTEGRATInG LIfE cYcLE APPROAcHES In GOvERnmEnT POLIcY AnD PROGRAm DEvELOPmEnT

STEP 2POLIcY DIAGnOSTIcStakeholder Consultations

STEP 3POLIcY DEvELOPmEnTStrategic Environmental Assessement Regulatory Impact Analysis Statement

STEP 1DEcISIOn TO DEvELOP POLIcYPolitical / Depart mental Decision

INPUT ANALYSISECONOMIC, SOCIAL, ENVIRONMENTAL

IMPACT ANALYSISECONOMIC, SOCIAL, ENVIRONMENTAL

STEP 7POLIcY & PROGRAm REvIEwProgram Delivery Evaluation Frameworks

THROUGHOUT LIFECYCLE OF THE PRODUCT(S) OR PROCESS(ES) AFFECTED BY THE POLICY

STEP 4POLIcY APPROvALConsideration of choices and tradeoffs

STEP 6POLIcY ImPLEmEnTATIOnPerformance Measurement

STEP 5PROGRAm DEvELOPmEnTTreasury Board Submission


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step 3 policy Development and step 4 policy Approval: The Government of Canada (GoC) has two existing tools at its disposal to generate better-informed decision making during the policy development stage Strategic Environmental Assessments (SEAs) and Regulatory Impact Analysis Statements (RIAS). A RIAS is triggered during policy development that is regulatory in nature; a similar process could be undertaken for non-regulatory policy decision making as well. SEAs and RIAS are usually undertaken at different steps. In the context of policy development for Life Cycle Approaches, both the SEA and RIAS would be undertaken simultaneously, early in the process (Step 3). These two tools would be used to analyze the economic, environmental and social inputs needed for the policy to be implemented and would be used to predict the environmental, economic and social impacts that might result from its implementation. This would enable the Minister and Deputy Minister at Step 4 (Policy Approval) to have complete and relevant information before developing any new policy and taking it to Cabinet for approval.

step 5 program Development and step 6 policy Implementation: Performance measurement indicators need to be created to track the progress of policy implementation in the public sector. These indicators would measure the success of the policy in terms of economic, environmental, and social attributes unique to each policy initiative. These would be established during Step 3 (Policy Development) and would be dependent on various inputs and impacts as identified by the SEA and RIAS. The analysis from the earlier steps would inform later stages such as Step 5 (Program Development) and Step 6 (Policy Implementation). In the implementation phase, the initial policy goals (as set in the planning stages) would be reconciled with the realization of these goals. The four steps would be embedded in a comprehensive manner so the analysis, integration and performance measurement all interconnect.

The main strengths of Life Cycle Approaches are that they are based on a systems approach and provide the perspective of multiple indicators. Life Cycle Approaches help identify areas of focus to reduce inputs and impacts, and provide a basis through which governments and businesses can compare different options to achieve desired input and impact reductions. By including and considering multiple inputs and impacts over the life cycle, the holistic impact of a product, technology, or process can be better understood, thus enabling effective mitigation of the associated risks. This includes understanding the entirety of the risk and identifying the actors that are involved. Social and environmental impacts are often overlooked as they are harder to quantify than

their economic counterparts; however, the use of Life Cycle Approaches facilitates their inclusion. Life Cycle Approaches enable governments and businesses to identify hot spots that is, areas with the greatest impact and thus target their efforts more efficiently. They also prevent organisations from making a decision that reduces the impact of one stage of the life cycle (e.g., manufacturing) while increasing the impact at another stage (e.g., disposal). Decision makers can use these approaches to increase their awareness of the potential impacts of their options by considering multiple impacts over the entire life cycle and thus make choices with better awareness of these trade-offs.

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The scope of information that is, the type of impacts or stages of the life cycle included in the Life Cycle Approach can affect the strength of the result. The consideration of a single environmental impact, such as GHG emissions, nullifies the ability of Life Cycle Approaches to identify trade-offs related to different environmental impacts such as water use or electricity and, their cumulative impact. This concern has been voiced about schemes that involve carbon footprinting.8 The consideration of only select aspects of the life cycle such as production or end-of-life is limiting, as it reduces the capacity to avoid unintentionally shifting the burden from one stage to another, which is a key objective of Life Cycle Approaches.9

2.2 A fRAmEwORk fOR LIfE cYcLE APPROAcHESLife Cycle Approaches include a wide variety of concepts, programs, tools, and data that range from qualitative (e.g., Life Cycle Thinking [LCT]) to quantitative (e.g., Life Cycle Assessment [LCA]) and from conceptual to pragmatic. Conceptual approaches are those that are more visionary, such as LCT, whereas pragmatic approaches are more tangible activities such as LCA. Some focus on resources and environmental features and others incorporate financial aspects (e.g., Life Cycle Costing [LCC]) and social information (e.g., Social Life Cycle Assessment [SLCA]). The focus of the approach also varies that of products (e.g., Design for Environment) or that of materials and resources (e.g., sustainable supply-chain management). Several of these are well established, including (Environmental) Life Cycle Assessment (LCA), Environmental Product Declarations (EPDs), ecolabelling and Design for Environment (DfE), with supporting standards or guidelines and a large amount of application. Others are emerging or less developed and are not supported by international standards, as is the case with SLCA. Some Life Cycle Approaches, such as LCA, can be resource intensive. However, there is a shift underway that is allowing Life Cycle Approaches to be applied in more cost-effective and timely ways while still affording the benefits mentioned above.

The main strengths of Life Cycle Approaches are that they are based on a systems approach and provide the perspective of multiple indicators.A broad range of concepts, programs, tools, and data and information described below have been created that can be used to incorporate Life Cycle Approaches into the decision-making process. Life Cycle Approaches can be applied at a variety of stages, including material, product, technology, project or service levels. The project level is important for improving the footprint of resource extraction, as is the case in the use of Life Cycle Assessment in the oil and gas and mining sectors. However, adding this perspective may be confusing if it is not done to consistent and accepted standards. The manner in which the findings or results of Life Cycle Approaches are used is also important.

The benefit of only using one metric (e.g., carbon) is that it reduces the burden of information on companies and allows for easy comparison.


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This group of concepts, programs, tools, and data and information are collectively described in this report as taking a Life Cycle Approach, and are illustrated in the NRTs Life Cycle Approach

Framework (see Figure 3). The framework contains key terminology; however, it is not meant to be a comprehensive list of Life Cycle Approaches.

fIGURE 3. A fRAmEwORk fOR LIfE cYcLE APPROAcHES

ConCepts Life Cycle Thinking (LCT)

Programs Ecolabelling Life Cycle Management (LCM) Extended Producer Responsibility (EPR) Sustainable Supply Chain Management Green / Sustainable Procurement Environmental Product Declarations (EPDs) Design for Environment (DfE) / Ecodesign

Tools LifeCycleCosting(LCC) MaterialFlowAnalysis(MFA) TotalCostAccounting(TCA) (Environmental)LifeCycle Assessment(LCA) SocialLifeCycleAssessment(SLCA) LifeCycleSustainability Analysis(LCSA) EconomicInput/OutputLife CycleAssessment(EIO-LCA)

Data anD InformatIon LifeCycleInventory(LCI) DatabasesandDatasets GuidelinesandStandards CaseStudies BestPractices Software

Quantitative

Qualitative

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This section describes this framework, including the relationships among the different components and provides definitions for some of the most common approaches included in each.

LIfE cYcLE cOncEPTSConcepts are the principles that guide and inspire the analytic and practical applications of Life Cycle Approaches.10 They involve thinking that considers all stages of the life cycle of a product or service and guide the application of programs and tools, which are supported by data and information. Life Cycle Thinking (LCT) is the primary concept; it seeks to identify possible improvements to goods and services in the form of lower environmental impacts and reduced use of resources across all life cycle stages.11 Concepts can be used to aid the decision-making process, or they can be used to provide a framework for developing and implementing a suite of Life Cycle Approaches. Qualitative data and information often help support and inform the use of LCT. The application of these concepts helps governments and businesses pinpoint existing tools or identify supporting programs they need to develop.

By considering the environmental impacts of all life cycle stages in the design phase, considerable reductions in environmental impacts can be made. A life cycle program, such as DfE, does just this by focusing on improving environmental impacts over a product life cycle by incorporating environmental considerations into product design. 14

Life Cycle Approaches include a wide variety of concepts, programs, tools, and data that range from qualitative (e.g., Life Cycle Thinking [LCT]) to quantitative (e.g., Life Cycle Assessment [LCA]) and from conceptual to pragmatic.Other examples of programs include ecolabelling, Green / Sustainable Procurement, Extended Producer Responsibility (EPR), LCM, Sustainable Supply Chain Management and EPDs. Programs can serve multiple functions. They can communicate the environmental impacts of a product, process, or system to customers (both individuals and businesses) in the form of ecolabels and EPDs. They can also be used to support the interventions of governments, as in the case of EPR, and those of businesses, as exemplified by DfE. EPR is the extension of a producers responsibility for a product to the post-consumer stage of a products life cycle.15 The responsibility can be physical (e.g., take back used computers to ensure proper disposal) or financial (e.g., pay another company to accept used goods). When done successfully, the end-of-life management costs of a product are incorporated into its retail and wholesale price, shifting the related expenses from taxpayers to producers and consumers. Frequently this reduces the environmental footprint of a product, as producers are provided with an incentive to modify their products design to decrease the amount and toxicity of its end-of-life waste and increase ease of product disassembly, among other factors.

LIfE cYcLE PROGRAmSLife cycle programs are used to put concepts such as LCT into practice.12 The application of Life Cycle Approach programs can confer significant economic and environmental benefits. For example, design decisions affect the entire life cycle of a product, including the type of materials used, the weight and size of the product, the energy required for transport, packaging requirements, consumer use, and recycling possibilities. Some estimates indicate that the design phase accounts for approximately 80% of all product-related environmental impacts.13


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Programs are often based on tools, such as Life Cycle Assessment (LCA) and are supported by data and information. Ecolabels provide one such example. These product labels communicate the environmental impacts of a product, which may be based on results from an LCA (see next section for details on LCA). The impacts can cover the entire life cycle, or they can target one stage of the life cycle (e.g., EnerGuide targets the use phase). LCAs can include multiple impacts or can refer to only a single impact, such as carbon (e.g., carbon footprint). The International Organization for Standardization (ISO) provides guidance on ecolabels (ISO 14020 series). There are three types of ecolabels under these standards, but of these three, only one (Type III) is based on a full LCA.16 EPDs provide an example of a Type III ecolabel. They are a globally recognized third-party verified product declaration based on the ISO 14025 standard. These declarations provide quantified environmental information on the environmental impacts for all stages of a products life cycle to help businesses and consumers compare the impacts of similar products. The development of EPDs are guided by Product Category Rules (PCRs), which establish the requirements of an LCA specific to a particular product group and are certified by Program Operators.

They provide economic and environmental information used to inform decision making. Examples of commonly used tools include LCA, LCC, Material Flow Analysis (MFA), Economic Input-Output Life Cycle Assessment (EIO-LCA), Life Cycle Sustainability Analysis (LCSA), and Total Cost Accounting (TCA). One of the most prevalent tools used by governments and businesses around the world is Life Cycle Assessment (LCA). This quantitative tool measures the potential environmental impacts of a product or service throughout its entire life cycle, from the extraction of raw materials to disposal. The objective is to mitigate the environmental impact of a product or service by guiding the decision-making process.17 By identifying environmental inputs and impacts, decision makers will have more information on which to base their choices and will be more aware of the effects of these choices. LCAs can result in economic benefits by identifying and targeting reductions in energy and raw-material intensive activities. LCA, including its methodology, is guided by the ISO 14040 series of standards and includes four phases. First, the goal and scope, including the boundaries** of the study, is defined. Second, all of the inputs and outputs for a given product system throughout its life cycle are identified (often at the unit process level), compiled, and quantified in a Life Cycle Inventory (LCI). This information can be calculated through a dedicated assessment or can be taken from an existing LCI database. Third, the results of the inventory analysis are interpreted in terms of

LIfE cYcLE TOOLSTools support Life Cycle Approaches by modelling and analyzing data over the life cycle of a product.

**

Boundaries determine what processes of the product, commodity or service being assessed are included in the scope of the study. Several types exist, including boundaries between technology and nature (e.g., what stages in the life cycle to include), geographical areas, time horizon (e.g., present vs. future impacts) and boundaries between the current life cycle and boundaries of other related systems (DANTES Project 2006).

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their environmental impacts (e.g., climate change, resource use, human health, ecosystem quality, freshwater use). Finally, the environmental impacts from the entire life cycle are examined to identify hot spots or compared to other products, processes or technologies to determine the best option. The results can be represented with a single score, but there is debate about the accuracy of weighting factors required to reach this. Appendix 3 contains an example of LCAs that were conducted to compare the environmental impacts of several hand-drying options (e.g, paper towel vs. blown air), which illustrate the steps required to conduct an LCA. Life Cycle Costing (LCC) is an economic tool that calculates the total cost of a product, process, or activity over its life span.18 This information can then be used to make decisions about about the design and development of a product, process, or activity. For example, the use of LCC can help quantify the costs of buying, using, maintaining, and disposing of a car. With this information, the buyer can identify which car will be cheaper throughout its entire life cycle, not just at any one stage, such as the purchase or use phase. LCC only considers internal monetary costs, which are costs passed on to the consumer. Another emerging application of LCC is in the funding of public infrastructure projects by governments. Traditional planning practices have exclusively focused on the design and construction costs of projects whereas the majority of the costs during the life cycle of the infrastructure occur during

the operations and maintenance (O&M) phase. Taking into account the full life cycle costs of an infrastructure project design, build, operation, and maintenance will lead to a higher level of service from the infrastructure, provide more efficient use of government funds, and mitigate undue environmental impacts related to O&M. If capital and O&M budgets are not linked, savings realized at one phase may cause increased costs in another hence the need to minimize the combined life cycle cost (capital and O&M) for an infrastructure project. By doing this, governments can deliver on infrastructure projects that align with community desires, minimize the environmental impact, and ensure the least possible economic cost over the life cycle of the infrastructure. Total Cost Accounting (TCA) is similar to LCC, except that it includes both internal and external costs. External costs are those that are borne by society and are not paid directly by the consumer.19 Environmental costs such as air or water pollution resulting from the use of the product or process fall into the category of external costs. Data is needed to use these tools. For example, to perform an LCA, LCI data is required. This is environmental data that represents the inputs and outputs for a given product system over its life cycle. Quantitative environmental and economic data are commonly used; however, qualitative and social data are also important.


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LIfE cYcLE DATA AnD InfORmATIOnLife cycle data and information provides the foundation for the adoption of Life Cycle Approach concepts, programs and tools. Both quantitative and qualitative environmental, social and economic data and information is used. Sources vary from industry, academia and government and range from publicly available LCI databases to case studies and best practices. Quantitative data is most often used and is frequently guided by standards. For example, LCA requires LCI data and is guided by ISO standards. Qualitative information, such as best practices and case studies, is frequently used to inform the development of Life Cycle Approach programs or to help make decisions using LCT or LCM. There is a need for affordable, high quality data that is geographically relevant to enable robust, defensible and meaningful analysis using LCA. LCI data is the most commonly used data as it is needed to conduct an LCA of a commodity or good. The data reflects the input and output material and energy flows associated with each step in a process or production of a good or commodity. For example, an LCA of an aluminum can may involve linking numerous LCI data sets to illustrate the full life cycle impacts of the cans production, use, and disposal (i.e., from raw material extraction, production, transportation, and use to end-of-life disposal). LCI data can be generated by the person conducting the LCA, which is often a costly and time-consuming process.

Alternatively, data from multiple sources can be compiled and housed in an LCI database, allowing access to cheaper and timely data. Globally, jurisdictions are developing their own databases that are available for public and private sector use. Chapter 5 includes a further discussion on why geographically based databases are important.

Life cycle data and information provides the foundation for the adoption of Life Cycle Approach concepts, programs and tools.

2.3 ExAmPLES Of LIfE cYcLE APPROAcHESCase studies are included throughout the report to illustrate the variety of ways in which Life Cycle Approaches are used in the private and public sectors. A summary of the case studies is presented in Table 1 (next page). The table shows the following: the name of the initiative, type of Life Cycle Approach used, associated risk or opportunity for Canada, main sectors affected, implementing entity, and the location of the case study in the report. The categories used to classify the associated risk or opportunity to Canada are elaborated on in Chapter 4.

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TABLE 1. SUmmARY Of LIfE cYcLE APPROAcHES cASE STUDIES In REPORTname of initiative type of Life cycLe APPRoACh USEDCarbon Footprinting, Environmental Product Declarations (EPDs) Carbon Footprinting

ASSoCIATED RISk or opportunity FoR CAnADATrade Restrictions

main sectors AFFECTEDGeneral Manufacturing

impLementing entity

CASE STUDy Location (section)3.2

La Grenelle 2 Act

Government of France

Empreinte Carbone Qubec

Trade Restrictions

General Manufacturing

Ministre du Dveloppement conomique, de lInnovation et de lExportation (MDEIE), Province of Qubec Canadian Tire (Canada)

3.3

Strategic Decision Making Model Green Guide to Specification

Economic InputOutput Life Cycle Assessment (EIO-LCA) Life Cycle Assessment (LCA)

Enhanced Supply Chain and Internal Operation Efficiencies Lack of Market Access

Retail

3.3

Building and Construction

Building Research Establishments Environmental Assessment Method (BREEAM) (U.K.) California and U.S. Environmental Protection Agency (EPA) FPInnovations (Canada)

3.3

Low Carbon Fuel Standard (LCFS) and Renewable Fuel Standards (RFS2) Program Operator for Environmental Product Declarations (EPDs) on Wood Products Policy on the Management of Real Property

Life Cycle Assessment (LCA)

Trade Restrictions

Oil and Gas

4.2

Environmental Product Declarations (EPDs)

Lack of Market Access and Trade Restrictions

Forestry

4.2

Life Cycle Thinking (LCT), Life Cycle Costing (LCC)

Public Sector Leadership, Enhanced Efficiencies in Internal Operations, Reduced Environmental Impacts Enhanced Supply Chain and Internal Operation Efficiencies, Reduced Environmental Impacts Enhanced Internal Operation Efficiencies, Reduced Environmental Impacts Consideration of Environmental Attributes in Policy Decisions

Building and Construction

Public Works and Government Services Canada (PWGSC) Walmart (international)

4.3

Product Sustainability Index

Life Cycle Assessment (LCA), Life Cycle Inventory (LCI) Database, Ecolabels Eco-efficiency Analysis and Product Label Life Cycle Assessment (LCA)

Retail

4.4

Eco-efficiency

Chemical Manufacturing Public Sector and Energy

BASF (international) Environment Canada

4.4

Bio-fibers Research Project

5.2


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2.4 cOncLUSIOnThe systems perspective provided by Life Cycle Approaches, which takes into account environmental, social, and financial considerations, is needed for better decision making in the 21st century in both industry and government. Life Cycle Approaches cover a wide-spectrum of applications. They include different concepts, programs, tools, and data designed to meet a variety of needs and uses. The NRTs Life Cycle Approach framework provides a common understanding on which to base a life cyclerelated dialogue and enhance uptake in Canada. Multiple linkages and relationships exist between the various types of Life Cycle Approaches, but it is clear that life cycle data and information provide the foundation for the adoption of Life Cycle Approach concepts, programs, tools, and data and information. Understanding what Life Cycle Approaches are and where they can be most usefully applied is the first step to assessing their benefit to business and government.

3.2 3.1DRIVERs fOR THE ADOpTION Of LIfE CYCLE AppROACHEs INTERNATIONAL UsE Of LIfE CYCLE AppROACHEs

3.4CONCLUsION

3.3DOMEsTIC UsE Of LIfE CYCLE AppROACHEs

3.0 TREnDS In LIfE cYcLE APPROAcHESTHIs CHApTER DEsCRIBEs THE INTERNATIONAL AND DOMEsTIC UsE Of LIfE CYCLE AppROACHEs BY THE pUBLIC sECTOR, pRIVATE sECTOR, INTERNATIONAL ORgANIzATIONs, NON-gOVERNMENTAL ORgANIzATION (NgOs) AND ACADEMIA (sEE fIgURE 4). THE ExAMpLEs INCLUDED BELOw wERE CHOsEN BAsED ON THEIR RELEVANCE TO CANADA BECAUsE Of THEIR ECONOMIC AND ENVIRONMENTAL IMpLICATIONs, OR TO ILLUsTRATE BEsT pRACTICEs THAT COULD BE INCORpORATED INTO fUTURE gOVERNMENT Of CANADA (gOC) pOLICIEs AND pROgRAMs. ExAMpLEs Of CURRENT pOLICIEs AND pROgRAMs THAT INCORpORATE AspECTs Of LIfE CYCLE AppROACHEs ARE ALsO INCLUDED. THEY ILLUsTRATE THE spORADIC NATURE Of ITs UsE BUT ALsO sHOw THAT THE gOC HAs A pLACE fROM wHICH TO sTART sHOULD IT CHOsE TO pURsUE LIfE CYCLE AppROACHEs IN A MORE DELIBERATE AND COORDINATED fAsHION. wE wILL ELABORATE ON sOME Of THEsE ExAMpLEs IN LATER CHApTERs Of THE REpORT.

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fIGURE 4. ILLUSTRATIOn Of TREnDS In LIfE cYcLE APPROAcHES PRESEnTED In cHAPTER 3

USE Of LIfE cYcLE APPROAcHES

INTERNATIONAL TRENDSPUBLIC SECTOR PRIVATE SECTOR INTERNATIONAL ORGANIZATIONS

DOMESTIC TRENDSPUBLIC SECTOR (FEDERAL) PUBLIC SECTOR (P/T) PRIVATE SECTOR

3.1 DRIvERS fOR THE ADOPTIOn Of LIfE cYcLE APPROAcHESLife Cycle Approaches are increasingly used around the world with the European Union (EU), United Nations (UN), Society for Environmental Toxicology and Chemistry (SETAC), multi-sectoral industry groups (e.g., the Sustainability Consortium) and multinational companies leading the way. Several international and multicountry initiatives have driven this adoption, and Canada needs to keep pace with this global trend. Both specific and high-level drivers are increasing the adoption of Life Cycle Approaches across the world. High-level drivers include issues discussed in Chapter 1, such as population growth, resource conservation, and ecosystem impacts of production.


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Specific drivers include market factors, trade

canada's opportunity: adopting life cycle approaches for sustainable development

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