Regulations Amending the Products Containing Mercury Regulations: SOR/2024-109

Canada Gazette, Part II, Volume 158, Number 13

Registration
SOR/2024-109 May 31, 2024

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

P.C. 2024-620 May 31, 2024

Whereas, under subsection 332(1)^{footnote a} of the Canadian Environmental Protection Act, 1999 ^{footnote b}, the Minister of the Environment published in the Canada Gazette, Part I, on December 24, 2022, a copy of the proposed Regulations Amending the Products Containing Mercury Regulations, substantially in the annexed form, and persons were given an opportunity to file comments with respect to the proposed Regulations or to file a notice of objection requesting that a board of review be established and stating the reasons for the objection;

Whereas, under subsection 93(3) of that Act, the National Advisory Committee has been given an opportunity to provide its advice under section 6^{footnote c} of that Act;

And whereas, in the opinion of the Governor in Council, under subsection 93(4) of that Act, the proposed Regulations do not regulate an aspect of a substance that is regulated by or under any other Act of Parliament in a manner that provides, in the opinion of the Governor in Council, sufficient protection to the environment and human health;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment and the Minister of Health, makes the annexed Regulations Amending the Products Containing Mercury Regulations under subsection 93(1)^{footnote d} of the Canadian Environmental Protection Act, 1999 ^{footnote b}.

Regulations Amending the Products Containing Mercury Regulations

Amendments

1 (1) Paragraph 2(f) of the Products Containing Mercury Regulations ^{footnote 1} is replaced by the following:

• (f) a pest control product as defined in subsection 2(1) of the Pest Control Products Act, other than a device referred to in paragraph 2(a) of the Pest Control Products Regulations or a treated article as defined in subsection 1(1) of those Regulations;

(2) Paragraphs 2(l) to (n) of the Regulations are replaced by the following:

• (l) a battery that has a mercury concentration of 0.0005% or less by weight;
• (m) a measuring device that is imported solely to be displayed in a public exhibition for cultural or historical purposes;
• (n) cold cathode tubing, or an electrode for use in cold cathode tubing, that
  • (i) is manufactured in or imported into Canada after December 31, 2025,
  • (ii) is needed to repair signage or cove lighting that is manufactured in, imported into or installed in Canada before December 31, 2025, and
  • (iii) contains a total quantity of mercury that is less than or equal to
    • (A) in the case of cold cathode tubing, 100 mg per 2.44 m (8 feet), and
    • (B) in the case of an electrode for use in cold cathode tubing, 100 mg;

2 Section 3 of the Regulations is replaced by the following:

Manufacture or import

3 (1) A person must not manufacture or import a product that contains mercury unless

• (a) the product belongs to a category set out in column 1 of Schedule 1, contains a total quantity of mercury that is less than or equal to the maximum total quantity set out in column 2 and is manufactured or imported by the person on or before the end date set out in column 3;
• (b) the product is a replacement part;
• (c) the product is a replacement lamp; or
• (d) the person holds a permit issued under subsection 5(1).

Sale or offer for sale

(2) A person must not sell or offer for sale a replacement lamp that belongs to a category set out in any of items 1 to 4, column 1, of Schedule 2 after the second anniversary of the end date set out in column 4.

Replacement part

(3) A replacement part is a part that

• (a) will replace a component that a product contained before November 8, 2015, and is required for that product to function;
• (b) cannot be replaced by a mercury-free alternative;
• (c) does not belong to a category set out in column 1 of Schedule 1 or 2; and
• (d) in the case of a cold cathode fluorescent lamp or an external electrode fluorescent lamp, is for use in an electronic display panel.

Replacement lamp

(4) A replacement lamp is a lamp that belongs to a category set out in column 1 of Schedule 2 and

• (a) contains a total quantity of mercury that is less than or equal to the maximum total quantity set out in column 2;
• (b) is manufactured in or imported into Canada on or after the start date set out in column 3 but no later than the end date set out in column 4; and
• (c) will be used in a lighting fixture installed before the start date set out in column 3 or, in the case of a bulb for an automobile headlamp, in an on-road vehicle that was manufactured in or imported into Canada before that date.

Obligation

3.1 A person that manufactures or imports a product in contravention of section 3 must ensure that the product is sent for final disposal or recycling at a facility that is authorized, by the authorities of the jurisdiction in which it is located, to dispose of or recycle hazardous materials. However, an imported product may instead be returned to the person or facility from which it was imported.

3 (1) The portion of section 4 of the Regulations before paragraph (a) is replaced by the following:

Application

4 An application for a permit to manufacture or import a product that contains mercury must be submitted to the Minister and must contain the following information and documents:

(2) Subparagraph 4(a)(ii) of the Regulations is replaced by the following:

• (ii) if applicable, the name, title, civic and postal addresses, telephone number and, if any, fax number and email address of their authorized representative;

(3) Subparagraphs 4(c)(i) and (ii) of the Regulations are replaced by the following:

• (i) achieves a similar result, and
• (ii) has a less harmful effect on the environment or on human health;

(4) Paragraph 4(e) of the French version of the Regulations is replaced by the following:

• e) la mention du fait que le plan sera mis à exécution dans les trente jours suivant la date de délivrance du permis;

4 Subsection 5(3) of the Regulations is replaced by the following:

Expiry

(3) A permit expires three years after the day on which it is issued, unless it is renewed in accordance with section 6.

5 Section 6 of the Regulations is replaced by the following:

Application to renew permit

6 (1) An application to renew a permit must be submitted at least 90 days before the day on which the permit expires and must include the permit number and the information and documents referred to in section 4.

Renewal

(2) The Minister must renew the permit if the application is made in accordance with subsection (1) and the conditions set out in subsection 5(1) are met.

6 (1) The portion of subsection 8(1) of the Regulations before paragraph (b) is replaced by the following:

Label — products containing mercury

8 (1) Subject to subsections (3), (4) and (5), any person that manufactures or imports a product that contains mercury must indicate the following information in a readily visible location on the product and, if applicable, on its package by means of a stamp, label or other mark:

• (a) a statement that the product contains mercury;
• (a.1) if the mercury is contained in a component of the product, a statement indicating which component contains it;

(2) Paragraph 8(1)(c) of the French version of the Regulations is replaced by the following:

• c) les choix possibles en matière d’élimination et de recyclage du produit, selon les lois du lieu de l’élimination ou du recyclage, l’adresse d’un site Web où ces renseignements sont accessibles ou les coordonnées d’une personne qui peut les fournir;

(3) Paragraph 8(1)(d) of the Regulations is replaced by the following:

• (d) a statement that the product should be disposed of or recycled in accordance with the applicable laws.

(4) Subsection 8(2) of the Regulations is repealed.

(5) Paragraph 8(3)(b) of the Regulations is replaced by the following:

• (b) if there is no package or the package is too small to accommodate the information, in a notice attached to the product or a manual that accompanies the product.

(6) Paragraph 8(4)(b) of the Regulations is replaced by the following:

• (b) in a notice attached to the product or a manual that accompanies the product.

(7) Section 8 of the Regulations is amended by adding the following after subsection (4):

Referral to website

(4.1) The person referred to in subsection (1) may, instead of indicating the information in a notice or manual in accordance with paragraph (3)(b) or (4)(b), indicate in the notice or manual the address of a website where the information is set out.

Requirements

(4.2) The information must

• (a) if the information is indicated on the product or the product’s package,
  • (i) be in both official languages,
  • (ii) be presented in a font size of at least 10 points with characters that are at least 3 mm in height, are legible and indelible and are impressed, embossed or in a colour that contrasts with the label’s background or the colour of the product or its package, as applicable,
  • (iii) be enclosed by a border, and
  • (iv) be easily distinguishable from other graphic material on the product or its package;
• (b) if the information is indicated in a notice or on a website, be in both official languages; and
• (c) if the information is indicated in a manual, be in English, French or both official languages, as requested by the first retail purchaser.

(8) The portion of subsection 8(5) of the Regulations before paragraph (b) is replaced by the following:

Non-application

(5) Subsections (1) to (4.2) do not apply to

• (a) replacement parts referred to in subsection 3(3); or

7 Sections 9 to 11 of the Regulations are replaced by the following:

Hg Symbol

9 (1) Any person that manufactures or imports a product belonging to a category set out in any of items 2 to 13, column 1, of Schedule 1 or in any item, column 1, of Schedule 2 must ensure that the symbol Hg is indicated in a readily visible location on the product in a font size of at least 10 points with characters that are at least 3 mm in height or within a pictogram of a least 7 mm in height such that the symbol is legible and indelible and impressed, embossed or in a colour that contrasts with the label’s background or the colour of the product, as applicable.

Small product

(2) Despite subsection (1), if a product is too small to accommodate the symbol Hg in a font size of at least 10 points with characters that are at least 3 mm in height, the symbol Hg must be indicated in the closest possible font size and character height and be, at a minimum, in a font size of 7 points with characters that are 2 mm in height.

Determination of Total Quantity of Mercury

Accredited laboratory

10 (1) Any analysis performed to determine the total quantity of mercury for the purposes of these Regulations must be performed by a laboratory that meets the following conditions at the time of the analysis:

• (a) it is accredited
  • (i) under the International Organization for Standardization standard ISO/IEC 17025, entitled General requirements for the competence of testing and calibration laboratories, by an accrediting body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement, or
  • (ii) under the Environment Quality Act, CQLR, c. Q-2; and
• (b) subject to subsection (2), the scope of its accreditation includes the analysis performed to determine the total quantity of mercury.

Standards of good practice

(2) If no method has been recognized by a standards development organization in respect of the analysis performed to determine the total quantity of mercury and the scope of the laboratory’s accreditation does not therefore include that analysis, the analysis must be performed in accordance with standards of good scientific practice that are generally accepted at the time that it is performed.

Electrotechnical products

11 The total quantity of mercury contained in an electrotechnical product is determined in accordance with the International Electrotechnical Commission standard IEC 62321-4, entitled Determination of certain substances in electrotechnical products – Part 4: Mercury in polymers, metals and electronics by CV-AAS, CV-AFS, ICP-OES and ICP-MS, as amended from time to time.

8 (1) Subsection 12(1) of the Regulations is replaced by the following:

Reporting requirements

12 (1) Any person that manufactures or imports a product that contains mercury, other than a replacement part referred to in subsection 3(3), must submit a report to the Minister

• (a) in respect of the 2025 calendar year, on or before March 31, 2026;
• (b) in respect of the 2027 calendar year, on or before March 31, 2028; and
• (c) in respect of every third calendar year after the 2027 calendar year, on or before March 31 of the calendar year following the year in respect of which the report is prepared.

(2) Subparagraphs 12(2)(a)(i) and (ii) of the Regulations are replaced by the following:

• (i) their name, telephone number, fax number and email address, as well as the civic and postal addresses of their principal place of business in Canada, and
• (ii) if applicable, the name, title, telephone number, fax number and email address of their authorized representative, as well as the civic and postal addresses of their authorized representative’s principal place of business in Canada; and

(3) Subparagraph 12(2)(b)(ii) of the Regulations is replaced by the following:

• (ii) if applicable, the name of the category set out in column 1 of Schedule 1 or 2 to which the product belongs or the number of the permit issued under subsection 5(1),

(4) Paragraph 12(2)(b) of the Regulations is amended by striking out “and” at the end of subparagraph (iv), by adding “and” at the end of subparagraph (v) and by adding the following after subparagraph (v):

• (vi) the quantity exported during the calendar year in question, if applicable.

9 (1) Subsection 13(1) of the Regulations is replaced by the following:

Electronic submission

13 (1) Any information provided to the Minister under these Regulations must be submitted electronically in the form and format specified by the Minister and must bear the electronic signature of the person that manufactures or imports the product containing mercury or of their authorized representative.

(2) Subsection 13(2) of the English version of the Regulations is replaced by the following:

Submission in writing

(2) If the Minister has not specified an electronic form and format or it is not feasible to send the information electronically in accordance with subsection (1) because of circumstances beyond the person’s control, the information must be sent on paper in the form and format specified by the Minister and signed by the person or their authorized representative. If no form and format have been specified, the information may be sent in any form and format.

10 (1) Subparagraph 14(1)(a)(ii) of the Regulations is replaced by the following:

• (ii) if applicable, the name of the category set out in column 1 of Schedule 1 or 2 to which the product belongs or the number of the permit issued under subsection 5(1),

(2) Paragraph 14(1)(a) of the Regulations is amended by striking out “and” at the end of subparagraph (iv) and by adding the following after subparagraph (v):

• (vi) the quantity of the product that is exported; and

(3) Subparagraph 14(1)(b)(ii) of the Regulations is replaced by the following:

• (ii) if applicable, the name of the category set out in column 1 of Schedule 1 or 2 to which the product belongs or the number of the permit issued under subsection 5(1),

(4) Subparagraphs 14(1)(b)(viii) and (ix) of the Regulations are replaced by the following:

• (viii) the Harmonized Commodity Description and Coding System tariff classification number for the product, as set out in the schedule to the Customs Tariff,
• (ix) the business number assigned to the person by the Minister of National Revenue,

(5) Paragraph 14(1)(b) of the Regulations is amended by adding “and” at the end of subparagraph (x) and by adding the following after that subparagraph:

• (xi) the quantity of the product that is exported.

(6) Section 14 of the Regulations is amended by adding the following after subsection (1):

Record of compliance with section 3.1

(1.1) If the person has manufactured or imported a product in contravention of section 3, they must maintain records that demonstrate compliance with section 3.1.

11 Section 16 of the Regulations is amended by adding the following after subsection (1):

Electronic form

(1.1) Any records, copies of information submitted to the Minister and supporting documents that are kept in electronic form must be in a readily readable form.

12 The schedule to the Regulations is replaced by the Schedules 1 and 2 set out in the schedule to these Regulations.

Consequential Amendment

13 The portion of item 28 of the schedule to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) ^{footnote 2} in column 2 is replaced by the following:

Item	Column 2 Provisions
28	(a) subsections 3(1) and (2) (b) section 3.1

Coming into Force

14 These Regulations come into force on the first anniversary of the day on which they are published in the Canada Gazette, Part II.

SCHEDULE

(Section 12)

SCHEDULE 1

(Paragraphs 3(1)(a) and (3)(c), subsection 9(1) and subparagraphs 12(2)(b)(ii) and 14(1)(a)(ii) and (b)(ii))

Maximum Total Quantity of Mercury for Products Other than Replacement Parts and Replacement Lamps

Item	Column 1 Category of Products	Column 2 Maximum Total Quantity of Mercury	Column 3 End Date
1	Encapsulated dental amalgam	No limit	None
2	Screw-base compact fluorescent lamps for general lighting purposes
	(a) ≤ 25 W	4 mg per lamp	December 31, 2025
	(b) > 25 W	5 mg per lamp	December 31, 2025
3	Pin-base compact fluorescent lamps for general lighting purposes	4 mg per lamp	December 31, 2025
4	Straight fluorescent lamps for general lighting purposes
	(a) T5, program start, with a normal lifetime (< 25,000 hours)	3 mg per lamp	December 31, 2025
	(b) T8, 1.22 m (4-foot) or less, instant and program start, medium bi-pin base, with a normal lifetime (< 25,000 hours)	4 mg per lamp	December 31, 2025
	(c) T5, program start, with a long lifetime (≥ 25,000 hours)	5 mg per lamp	December 31, 2025
	(d) T8, 1.22 m (4-foot) or less, instant and program start, medium bi-pin base, with a long lifetime (≥ 25,000 hours)	5 mg per lamp	December 31, 2025
	(e) T12, 1.22 m (4-foot) or less, rapid start, medium bi-pin base
	(i) halo phosphate phosphor	10 mg per lamp	December 31, 2025
	(ii) tri-band phosphor	5 mg per lamp	December 31, 2025
	(iii) any other lamp	10 mg per lamp	December 31, 2025
	(f) T12, 2.44 m (8-foot), instant start, single pin base
	(i) halo phosphate phosphor ≤ 40 W	10 mg per lamp	December 31, 2025
	(ii) tri-band phosphor < 60 W	5 mg per lamp	December 31, 2025
	(iii) any other lamp	15 mg per lamp	December 31, 2025
5	Non-linear fluorescent lamps for general lighting purposes, including circular or square fluorescent lamps	15 mg per lamp	December 31, 2025
6	Induction fluorescent lamps for general lighting purposes	15 mg per lamp	December 31, 2025
7	High pressure sodium vapour lamps for general lighting purposes	40 mg per arc tube	December 31, 2028
8	Metal halide lamps for general lighting purposes
	(a) ≤ 300 W	40 mg per lamp	December 31, 2028
	(b) > 300 W and ≤ 500 W	75 mg per lamp	December 31, 2028
	(c) > 500 W and ≤ 700 W	85 mg per lamp	December 31, 2028
	(d) > 700 W and ≤ 1000 W	250 mg per lamp	December 31, 2028
9	Bulbs for automobile headlamp	10 mg per lamp	December 31, 2025
10	Fluorescent or discharge lamps used for growing plants	No limit	None
11	Fluorescent or discharge lamps used for air or surface purification, sterilization, sanitization, treatment or disinfection	No limit	None
12	Fluorescent or discharge lamps used for water purification, sterilization, sanitization, treatment or disinfection	No limit	None
13	Fluorescent or discharge lamps other than (a) lamps belonging to a category set out in any of items 2 to 12, column 1, of this schedule or in any item, column 1, of Schedule 2 (b) mercury vapour lamps for general lighting purposes (c) cold cathode fluorescent lamps (d) external electrode fluorescent lamps (e) cold cathode tubing for signage or cove lighting	No limit	None
14	Thermometers for use in a laboratory for scientific research applications	No limit	None
15	Thermometers or other scientific instruments whose use is required by an ASTM International standard	No limit	None
16	Scientific instruments for the calibration of medical devices or of scientific research instruments	No limit	None
17	Analytical standards, reagents or reference material for use in a laboratory	No limit	None
18	Scientific instruments for use as a reference for clinical validation studies	No limit	None
19	Scientific instruments for measuring the quantity of mercury in the environment	No limit	None
20	Catalysts for use in the manufacturing of polyurethane	No limit	December 31, 2025

SCHEDULE 2

(Subsection 3(2), paragraph 3(3)(c), subsections 3(4) and 9(1), subparagraphs 12(2)(b)(ii) and 14(1)(a)(ii) and (b)(ii) and paragraph 13(a) of Schedule 1)

Maximum Total Quantity of Mercury for Replacement Lamps

Item	Column 1 Category of Lamps	Column 2 Maximum Total Quantity of Mercury	Column 3 Start Date	Column 4 End Date
1	Pin-base compact fluorescent lamps for general lighting purposes	4 mg per lamp	January 1, 2026	December 31, 2027
2	Straight fluorescent lamps for general lighting purposes
	(a) T5, program start, with a normal lifetime (< 25,000 hours)	3 mg per lamp	January 1, 2026	December 31, 2027
	(b) T8, 1.22 m (4-foot) or less, instant and program start, medium bi-pin base, with a normal lifetime (< 25,000 hours)	4 mg per lamp	January 1, 2026	December 31, 2027
	(c) T5, program start, with a long lifetime (≥ 25,000 hours)	5 mg per lamp	January 1, 2026	December 31, 2027
	(d) T8, 1.22 m (4-foot) or less, instant and program start, medium bi-pin base, with a long lifetime (≥ 25,000 hours)	5 mg per lamp	January 1, 2026	December 31, 2027
	(e) T12, 1.22 m (4-foot) or less, rapid start, medium bi-pin base
	(i) halo phosphate phosphor	10 mg per lamp	January 1, 2026	December 31, 2027
	(ii) tri-band phosphor	5 mg per lamp	January 1, 2026	December 31, 2027
	(iii) any other lamp	10 mg per lamp	January 1, 2026	December 31, 2027
	(f) T12, 2.44 m (8-foot), instant start, single pin base
	(i) halo phosphate phosphor ≤ 40 W	10 mg per lamp	January 1, 2026	December 31, 2027
	(ii) tri-band phosphor < 60 W	5 mg per lamp	January 1, 2026	December 31, 2027
	(iii) any other lamp	15 mg per lamp	January 1, 2026	December 31, 2027
3	Non-linear fluorescent lamps for general lighting purposes, including circular or square fluorescent lamps	15 mg per lamp	January 1, 2026	December 31, 2027
4	Induction fluorescent lamps for general lighting purposes	15 mg per lamp	January 1, 2026	December 31, 2027
5	High pressure sodium vapour lamps for general lighting purposes	40 mg per arc tube	January 1, 2029	None
6	Metal halide lamps for general lighting purposes
	(a) ≤ 300 W	40 mg per lamp	January 1, 2029	None
	(b) > 300 W and ≤ 500 W	75 mg per lamp	January 1, 2029	None
	(c) > 500 W and ≤ 700 W	85 mg per lamp	January 1, 2029	None
	(d) > 700 W and ≤ 1000 W	250 mg per lamp	January 1, 2029	None
7	Bulbs for automobile headlamp	10 mg per lamp	January 1, 2026	None

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues

Mercury is a heavy metal that can be present in the environment in many different forms as a result of natural processes or human activity. Once in the environment, mercury can be carried over long distances in the atmosphere and deposited everywhere in Canada, including sensitive areas such as the Canadian Arctic and Great Lakes. Mercury can be transformed into a highly toxic, naturally occurring compound called methylmercury, which bioaccumulates in the aquatic food chain. Exposure to mercury is of higher concern in Canadian communities, such as those of Indigenous Peoples, who rely on the consumption of predatory fish and other traditional foods.

The Products Containing Mercury Regulations (the Regulations) were published on November 19, 2014, and came into force on November 8, 2015. The Regulations prohibit the manufacture and import of products containing mercury or any of its compounds, while allowing exemptions for essential products that do not have technically or economically viable alternatives. This includes products such as dental amalgam, lamps and certain scientific instruments. Since the publication of the Regulations, there has been an ongoing market decline of mercury-containing products in Canada and most lamps exempt from the general mercury prohibition now have readily available substitutes that are more energy efficient and mercury-free, such as light-emitting diode lamps (LEDs). There has also been a reported decline in other mercury-containing products that were manufactured or imported in Canada, according to data submitted to the Department of the Environment (the Department) during triennial mandatory reporting by organizations that imported or manufactured products containing mercury in Canada.

In 2017, Canada ratified the Minamata Convention on Mercury (the Convention), an international convention to reduce mercury pollution. As the Regulations came into force in 2015, they do not fully align with all the requirements of the Convention. Adjustments to the allowable mercury content limits of specific lamp categories that are currently exempt from the general mercury prohibition in the Regulations are required to fully align with the original text of the Convention. Prohibiting additional products, including most lamps for general lighting, will allow Canada to ratify amendments to the Convention adopted in 2022 and 2023. Other amendments to the Regulations will align with recent industry standards and international regulatory initiatives. Additionally, ongoing administration of the Regulations has identified the need to clarify some provisions of the regulatory text, such as those related to labelling, testing, reporting, and record keeping.

Background

Mercury and its compounds are listed as toxic substances under Schedule 1 to the Canadian Environmental Protection Act, 1999 (CEPA), which enables the Minister of the Environment and the Minister of Health to propose and implement risk management instruments to reduce the risks to human health and the environment associated with mercury releases from anthropogenic (i.e. human-caused) sources. Over the past decades, the Government of Canada (the Government) has undertaken numerous domestic and global actions to minimize or eliminate mercury releases and exposure. Canadian emissions of mercury are currently being managed through federal, provincial and territorial legislation, regulation and programs.

Following the publication of the Regulations in November 2014, the Department released the Code of Practice for the Environmentally Sound Management of End-of-life Lamps Containing Mercury (the Code of Practice) in February 2017. The Code of Practice encourages lamp collectors, transporters and processors to adopt best practices aimed at preventing mercury releases in the environment.^{footnote 3} The Code of Practice is a voluntary tool to complement existing provincial, territorial and other initiatives, and to promote best practices for managing end-of-life mercury-containing lamps, including options for northern and remote areas with limited access to recycling and disposal facilities.

On August 16, 2017, the Convention came into force as a new international treaty. The Convention is a legally binding agreement under the United Nations Environment Program (UNEP) that focuses on the global reduction of anthropogenic mercury pollution. Canada signed the Convention on October 10, 2013, and ratified it on April 7, 2017.^{footnote 4} The Convention takes a lifecycle approach to reduce the health and environmental impacts of mercury pollution and includes requirements for controls across a range of mercury-containing products, manufacturing processes, and industrial activities. Controls include implementing best environmental practices, such as phasing out mercury use where technically and economically feasible alternatives exist, and restricting trade in mercury, mercury compounds and mercury-containing products.

For example, the Convention requires Parties to phase out by 2020 the manufacture, import and export of certain products with mercury content above specified limits. These include various lamp types, such as linear fluorescent lamps (LFLs), cold cathode fluorescent lamps (CCFLs) and external electrode fluorescent lamps (EEFLs). As a precautionary measure, at the time of ratification of the Convention, Canada registered an exemption of five years past the 2020 phase-out date for the manufacture, import and export of these categories of lamps. In 2022, the Conference of Parties to the Convention adopted amendments bringing in new requirements for the complete prohibition of most types of CCFLs and EEFLs by the end of 2025, except for those used in electronic displays where no feasible mercury-free alternatives for replacement are available. Furthermore, in 2023, the Parties adopted amendments to phase out remaining categories of compact fluorescent lamps (CFLs) and LFLs for general lighting purposes by 2026 and 2027.^{footnote 5} Whereas the original text of the Minamata Convention (2017) aimed for the phase-out of mercury-containing catalysts used in the manufacturing of polyurethane within 10 years, in 2023, the parties adopted a complete phase-out in 2025. No company has reported importing these catalysts in Canada since 2019. In addition, since 2017, the parties to the Convention have agreed to prohibit additional products, including photographic film and paper, very high accuracy capacitance and loss measurement bridges, high-frequency radio frequency switches and relays in monitoring and control instruments. These products are no longer imported or manufactured in Canada and have mercury-free alternatives.

To prevent mercury pollution from lamps disposed of in landfills, the National Strategy for Safe and Environmentally Sound Disposal of Lamps Containing Mercury Act (the Act) was enacted and received royal assent on June 22, 2017. The Act required the Minister of the Environment (the Minister) to develop a national strategy by 2019 in cooperation with provincial, territorial, and other governments in Canada responsible for the environment to enhance existing activities related to eliminating lamps as a source of mercury pollution. The Minister is required to report to Parliament on the implementation of the Act every five years.

In July 2019, the Minister tabled the National Strategy for Lamps Containing Mercury ^{footnote 6} (the National Strategy) in Parliament. The National Strategy aims to eliminate mercury pollution from lamps in Canada by recommending that bulbs containing mercury be collected and sent to specialized facilities for environmentally sound disposal and encouraging Canadians to buy mercury-free alternatives. Since 2018, 103 million lamps have been recycled in an environmentally sound manner.

In Canada, bulk (loose) dental amalgam powders, which have to be mixed with liquid mercury by hand, are known to pose an unnecessary risk of mercury exposure for the dental healthcare professional. Health Canada has worked with manufacturers to discontinue the licences of bulk dental amalgam powders in Canada. Furthermore, Parties to the Convention have recently agreed to phase out the use of bulk dental amalgam through an amendment adopted in 2022. Although restricting dental amalgam to its encapsulated form was already one of several optional measures that Parties could take to phase down the use of dental amalgam in the original text of the Convention, the new treaty amendment requires that Parties take measures, as appropriate, to not allow the use of mercury in bulk form by dental practitioners.

Background information on the effects of mercury exposure

Mercury is a naturally occurring chemical element that is persistent, bioaccumulative and toxic, at very low levels, for human health and aquatic and terrestrial ecosystems. It is found in three general forms: pure mercury (a heavy metal), also known as “elemental mercury” or “metallic mercury”; inorganic mercury compounds; and organic mercury compounds.

Mercury is a global contaminant because it is toxic and bioaccumulates (i.e. it does not break down in the environment and can accumulate in living things). Mercury and its compounds (collectively referred to as “mercury”) are part of a global cycle and contribute to the formation of more harmful forms of mercury. Some microorganisms and natural processes change mercury from one form to another. For example, some types of bacteria and fungi can change mercury into its most toxic form, methylmercury. Methylmercury is a very harmful organic substance and is of particular concern since it tends to accumulate in living organisms through their surrounding environment as it moves up the food chain. For instance, methylmercury can build up in many edible fish (freshwater and saltwater) and marine mammals. The primary source of methylmercury exposure in humans is through the consumption of fish or fish-eating species. This exposure can have degenerative effects with respect to brain development, which can be particularly damaging to young children and infants whose nervous systems are still developing.

Objective

The main objective of the Regulations Amending the Products Containing Mercury Regulations (the Amendments) is to protect Canadians by lowering the risk of mercury releases into the environment from products in Canada. By meeting this objective, the Amendments will enable Canada to meet requirements for mercury-containing products under the Minamata Convention, to ratify new requirements adopted by the Convention and to go beyond the Convention by phasing out additional mercury-added products. The Amendments will further align the Regulations with other international initiatives, including requirements in the European Union (EU) and certain states in the United States (U.S.). In addition, these actions can encourage other countries to further reduce their mercury releases. The Amendments also aim to clarify certain regulatory provisions to address recent administrative and implementation issues.

Description

The Amendments will ensure the Regulations meet the requirements under the Convention and, in some cases, go beyond what is required under the Convention to further decrease mercury releases.

Amendments to align the Regulations with the requirements under the Convention

Ending exemptions for certain lamps and lowering their mercury content limits

The Amendments will prohibit the import and manufacture of the following lamps for general lighting purposes on December 31, 2025:

• Screw-base compact fluorescent lamps
• Pin-base compact fluorescent lamps
• Straight fluorescent lamps
• Non-linear fluorescent lamps

For transitional purposes, the Amendments will allow replacement lamps to continue to be imported or manufactured for pin-base CFLs, straight fluorescent lamps and non-linear fluorescent lamps for a two-year period ending on December 31, 2027. As a result, these lamps will only be allowed to be imported or manufactured until December 31, 2027, and only to replace lamps that are already in use in existing lamp fixtures. Furthermore, in order to avoid issues of stockpiling while allowing retailers to sell their stock, the sale of these replacement lamps will be prohibited in 2029, two years after their exemption expires.

In addition, for straight fluorescent lamps for general lighting purposes, the Amendments will lower the mercury content limit currently allowed for certain lamps upon the coming into force of the Amendments. For example, the mercury content limit for triband phosphor T12 lamps that are less than 60 watts will be lowered from 10 mg or 15 mg per lamp to 5 mg per lamp. This Amendment is an obligation under the original text of the Minamata Convention.

Upon the Amendments coming into force, the import or manufacture of CCFLs and EEFLs will be prohibited, with the exception of lamps used in electronic displays if, and only if, no feasible mercury-free alternative is available.

Ending exemptions for catalysts used in the manufacturing of polyurethane and other products

The Amendments will add a prohibition date of December 31, 2025, for catalysts used in the manufacturing of polyurethane.

The import and manufacture of products that are no longer used in Canada or have mercury-free alternatives, including photographic film and paper, very high accuracy capacitance and loss measurement bridges, high-frequency radio frequency switches and relays in monitoring and control instruments, will be prohibited in Canada upon the coming into force of the Amendments in 2025.

Prohibiting dental amalgam powders

The Amendments will prohibit bulk dental amalgam powders upon the coming into force of the Amendments in 2025.

Other amendments

Restricting the import and manufacture of certain lamps

The import and manufacture of high-pressure sodium vapour lamps and metal halide lamps used for general lighting purposes will be prohibited on December 31, 2028. However, considering that not all existing fixtures have direct mercury-free replacements yet, the Amendments will include an exemption for replacement lamps to be used in existing fixtures, with no end date. Similarly, while automobile headlamps will be prohibited in 2025, replacement bulbs for existing automobile headlamps will be allowed with no end date.

Clarifications on the scope of replacement parts and other exemptions

The Amendments will clarify that the exemption for replacement parts applies to the mercury-containing component of a product that has to be replaced and not the whole product. The Amendments will also clarify that the exemption does not apply if the product is listed on any of the schedules to the Regulations. As mentioned above, the Amendments will also clarify that CCFLs and EEFLs used in electronic displays will be considered replacement parts if no feasible mercury-free alternative for replacement is available. Finally, the Amendments will clarify the scope of other exemptions, including exemptions for laboratory analytical standards or reference material, as well as exemptions for pest control products.

Administrative changes

Some administrative provisions related to testing, labelling, record keeping and reporting will be clarified and improved to facilitate the implementation of the Regulations. The Amendments will broaden the accreditation bodies recognized under the Regulations to include signatories of the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement (ILAC MRA).

The due dates for submitting reports to the Department on activities related to products containing mercury will be amended to align with the U.S. EPA reporting timeline, such that regulatees will be required to report on mercury-containing products in March 2026, March 2028, and every three years thereafter. The Amendments will also introduce mandatory reporting and maintaining of records on exported products, which will provide essential information for Canada’s reporting under the Minamata Convention.

The record-keeping requirements of the Regulations will also be updated to include a provision allowing records to be kept electronically. The Amendments will also clarify labelling requirements and the scope of certain exemptions. Finally, under the Amendments, any person who contravenes the manufacturing or importing requirements will have to ensure that the product is sent for final disposal or recycling at an authorized facility. If the product is imported, it could be returned to the facility from which or the person from whom it was imported. Failure to comply with this new stipulation could result in enforcement action.

In the schedules to the Regulations, the Amendments will create three new categories of exempted lamps. These three categories are fluorescent or discharge lamps used for growing plants, fluorescent or discharge lamps for water treatment and fluorescent or discharge lamps for air treatment. These types of lamps are already exempted under a broad category that covers all specialty lamps. The objective of creating these new categories is to gain a better understanding of the quantity of each lamp type manufactured and imported in Canada by requiring information related to these new categories to be reported. No prohibition is planned at this time. Finally, the references to products whose exemption period has expired will be removed from the schedules, including button cell batteries.

Consequential amendments

Consequential amendments to the Regulations Designating Regulatory Provisions for Purposes of Enforcement (Canadian Environmental Protection Act, 1999) [the Designation Regulations] will also be made as a result of the Amendments. The Designation Regulations identify provisions of various regulations made under CEPA as being subject to an enhanced fine range in the event of a successful prosecution of an offence involving harm or risk of harm to the environment, or obstruction of authority. In this case, item 28 in the schedule to the Designation Regulations, which relates to the Regulations, will be amended to include the new provisions in the Amendments. Specifically, section 3.1 in the Amendments, which describes an obligation to ensure proper disposal and recycling of a product in contravention of the manufacturing or importing requirements, will be reflected in the Designation Regulations.

Regulatory development

Consultation

Consultations prior to the publication of the proposed Amendments in the Canada Gazette, Part I

Between 2018 and 2021, the Department consulted the public on the amendments under consideration in different ways. First, the Department published a consultation document online, which was followed by a 60-day public comment period.^{footnote 7} An email was also sent to invite stakeholders and other groups identified as being potentially involved or interested in the proposed Amendments to submit comments. Finally, the Department held follow-up discussions with key stakeholders that submitted comments or requested additional information.

The intent of the consultations was to inform stakeholders of the main changes proposed at the time and to give them opportunities to submit comments. The proposed amendments included bringing Canadian requirements in line with the Convention, with recent industry standards and with other international regulatory initiatives.

Stakeholder groups and Indigenous Partners were generally supportive of the proposed Amendments; however, they noted some concerns, including with modifications to the exemptions for dental amalgam, lamps and replacement parts, and with administrative changes to the Regulations’ requirements. An in-depth summary of these comments and how they were addressed is available in the Regulatory Impact Analysis Statement that was published with the proposed Amendments in the Canada Gazette, Part I.^{footnote 8}

Consultations following publication of the proposed Amendments in the Canada Gazette, Part I, in December 2022

The proposed Amendments^{footnote 8} were published in the Canada Gazette, Part I, on December 24, 2022, for a 75-day public comment period ending on March 9, 2023. They aimed to allow Canada to fully align with all the requirements of the Minamata Convention on Mercury for mercury-containing products. In addition, to accelerate the transition to LEDs, which are mercury-free and more energy efficient, the proposed Amendments included a proposed phase-out of the manufacture and import of the most common lamps containing mercury. On February 4, 2023, an erratum was published in the Canada Gazette, Part I, to address errors in the English version of the Regulatory Impact Analysis Statement. Under the heading “Dental amalgam,” the expression “phased-out” should have been written as “phased-down.”

The public was invited to review and comment on the proposed Amendments. Emails were sent to all regulatees, key industry associations, Indigenous Partners, environmental non-governmental organizations (ENGOs) and other people identified as being potentially interested. The Department also invited the public using social media, including Facebook and LinkedIn, to share their comments on the Amendments.

On December 30, 2022, pursuant to subsection 93(3) of CEPA, the Department and the Department of Health informed provincial and territorial governments of the publication of the proposed Amendments through the National Advisory Committee of CEPA. No comments were received from Committee members.

In January 2023, the Department sent a notification to the World Trade Organization’s Committee on Technical Barriers to Trade, because the proposed Amendments could have implications for international trade practices. The notification aimed to inform the Committee members of the publication of the proposed Amendments in the Canada Gazette, Part I, and to invite them to submit comments. No comments were received through this process.

During the 2022–2023 public consultations, 19 sets of comments were received. All stakeholders were supportive of the objective of the proposed Amendments, which is to protect Canadians by lowering the risk of mercury from products. However, they noted some concerns, which are summarized below. The public was invited to post their comments directly in the Canada Gazette publication, or to submit them by email. In addition to these online consultations, the Department held follow-up discussions with key stakeholders and Indigenous Partners that requested additional information or when clarification was needed regarding their comments.

Dental amalgam

Amendments were proposed to prohibit the import and manufacture of bulk dental amalgam powders, which have to be mixed with liquid mercury by hand, but to continue to exempt dental amalgam capsules.

Summary of comments: Four Indigenous Partners and one ENGO commented on the exemption for dental amalgam. The concerns expressed were similar to those of the earlier comment period. While they agreed with prohibiting bulk mercury for dental amalgam, they believed Canada should go further and ban dental amalgam altogether. Indigenous Partners shared concerns over the fact that their members and communities are already exposed to mercury from traditional foods and that any other sources of exposure should be eliminated. The Indigenous Partners and the ENGO expressed their views that mercury-free alternatives are available for most types of restorations, and that measures put in place by Canada are not creating enough incentive to stop using dental amalgam completely. Furthermore, they shared concerns over the lack of access to preventive dental care, stating that better access would enable Canada to move away from relying on dental amalgam. Indigenous Partners and the ENGO further raised the concern about the environmental risks of mercury emissions stemming from cremation practices and noted that phasing out dental amalgam would be a solution to this issue. Finally, the ENGO expressed its wish to see Canada promote the implementation of the newly adopted amendments to the Minamata Convention to further phase down the use of dental amalgam in certain populations.

Response: The Government recognizes that Indigenous Peoples face higher exposure and risks associated with mercury and many other toxic substances. To further examine the risks posed by mercury, in 2020, Health Canada undertook a safety review on dental amalgam with a view to verify and update its 1996 position statement on mercury exposure and health risks, if warranted. Based on scientific evidence, including recent Canadian studies^{footnote 9,footnote 10} the review concluded that “there is no clear link between mercury in dental amalgam and negative health effects” and that the 1996 position statement remains valid. The review also confirmed the 1996 recommendations to minimize the use of dental amalgam in children, people who are pregnant or breastfeeding, and people with kidney disease, based on the precautionary principle. It should be emphasized that the findings and recommendations of this current review are consistent with the conclusions of professional dental associations and other international regulatory agencies.

The Government plans to ratify the newly adopted dispositions under the Minamata Convention given that it is already aligned with the 1996 Health Canada position statement and conclusion from the 2020 Safety Review. Health Canada will continue to monitor information on the benefits and risks associated with the use of dental amalgam and take appropriate and timely action should any new health risks be identified. The Amendments are not being expanded to remove the exemption for dental amalgam capsules.

Timeline to phase out mercury-containing lamps

Amendments were proposed to prohibit the most common types of lamps containing mercury on December 31, 2023, and to allow certain replacement lamps for a three-year transition period thereafter.

Summary of comments: The main concerns expressed during the public consultations were regarding the timeline proposed to phase out mercury-containing lamps. Although there is a general consensus amongst stakeholders that lamps containing mercury used for general lighting are being replaced by LED lamps on the Canadian market, they argued that starting the transition in 2023 did not provide enough time for the transition.

First, they explained that they rely on international supply chains, placing their orders sometimes up to 12 months in advance, making the three-month delay between the publication of the final Amendments and their coming into force difficult to abide by. In consideration of their supply chain, one large lighting association further recommended that the prohibition date not precede the January 2025 phase-out planned in a few U.S. states, including California and Vermont.

Second, members of the public and industry alike mentioned that the transition would be costly and technically challenging. They highlighted that LEDs are more expensive and that payback times are still too long. Industry representatives also explained that the numbers of fixtures requiring replacements across their sectors were unknown, making it difficult to estimate costs and timing to replace them.

Third, members of the public and of the industry were concerned that the proposed timeline for prohibition did not provide enough time to inform the public of the proposed changes. They believe that informing the public and industry association members would take more than the three months between the anticipated publication and coming into force of the Amendments. They also insisted that the Amendments should be written in a way that minimizes confusion. An association of building managers recommended to carry out a campaign to inform and educate Canadians on the market changes related to the transition to LED lighting.

As a result of these concerns, stakeholders asked for a longer timeline to implement the phase-out of the import, manufacture and sales of mercury-containing lamps, including at least a 12-month notice before any prohibition comes into effect.

Response: The Department has considered the concerns of the industry and the public, and has reviewed the proposed timeline to phase out lamps containing mercury. The revised timeline will provide 12 months between the publication of the Amendments and their coming into force. This approach will allow sufficient time for the industry to complete their international orders, and to inform their members and customers of the regulatory changes. Similarly, it will give time for the Department to conduct compliance promotion and advertising activities to inform the public.

In addition, the start of the lamp prohibitions will be in 2025 instead of in 2023. This later date will give the industry and the public additional time to plan the changes required, while respecting Canada’s international commitments under the Minamata Convention to phase out mercury-containing lamps for general lighting. The Department also did not receive comments from importers on possible issues in meeting the demand for these lamps during the transition period. According to data reported by the industry to the Department, the import and manufacture of lamps containing mercury used for general lighting have declined by 72% between 2016 and 2022, as they are being replaced by LEDs.

For some mercury-containing lamps for which the mercury-free technology is not quite as advanced, such as high-intensity discharge lamps, the approach will be to phase them down and to continue to monitor their import and manufacture. Meanwhile, the market trends for mercury-containing lamps continue to decline as they are replaced by LEDs. More details regarding specific lamp prohibition dates can be found in the sub-sections below.

Pin-base CFL for general lighting

Amendments were proposed to prohibit pin-based CFLs used for general lighting on December 31, 2023, and to allow replacement lamps for a three-year transition period thereafter.

Summary of comments: For pin-base CFLs, some industry associations expressed concerns regarding technical incompatibility with LEDs, leading to potential conversion costs and impacts on tenants and owners from retrofitting the ceilings. While hundreds of types of retrofit LED lamps exist for pin-base CFLs, they are not all compatible, which means their fixtures would need to be replaced. Changing the fixtures from CFLs to LEDs may require, in some cases, full electric rewiring and rebuilding of the ceiling.

Response: The Department recognizes that there may be challenges for the industry and for owners of commercial spaces in undergoing the conversion to pin-base LEDs. However, internationally, many jurisdictions are already moving away from pin-base CFLs. In the EU, the production of pin-base CFLs has been banned since February 25, 2023, under the Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment [also known as Restriction of Hazardous Substances (RoHS Directive)]. The Minamata Convention, to which Canada is a party, has also adopted an amendment to prohibit them in 2026. In the U.S., some states, including California, have already prohibited their sales altogether, and more states are considering it. As a result, the Amendments maintain a prohibition on the import and manufacture of pin-base CFLs for general lighting purposes, but to delay it until December 31, 2025. Furthermore, this ban will be followed by an exemption to the prohibition on the import and manufacture of replacement lamps that will end on December 31, 2027, and then by a two-year exemption to the prohibition on the sale of these replacement lamps. This approach is expected to leave enough time for the industry and end users to plan for the replacement of their pin-base CFL fixtures, in the event that direct LED replacements are not available.

High intensity discharge lamps for general lighting

Amendments were proposed to prohibit metal halide lamps used for general lighting on December 31, 2023, and high-pressure sodium vapour lamps used for general lighting on December 31, 2028, and to allow replacement lamps for these two lamp types for a three-year transition period thereafter.

Summary of comments: For high-intensity discharge (HID) lamps, stakeholders expressed concerns regarding the technical compatibility with LEDs for both metal halide lamps and high-pressure sodium vapour lamps. However, concerns were especially strong for metal halide lamps considering that it was proposed to prohibit them in 2023. While all HID ballasts in Canada could technically be replaced by LED ballasts, the scale of doing so across the country would require substantial investments and a plan over more than a decade.

Response: The Department has considered the industry concerns regarding HID lamps and the Amendments will now implement a more gradual phase-down. The import and manufacture of metal halide lamps for general lighting will therefore be prohibited on December 31, 2028, which is at the same time as high-pressure sodium vapour lamps for general lighting. In addition, replacement lamps for both HID lamp types will be exempted with no end date. This approach aims to promote the use of mercury-free LED lighting in new installations, while allowing for the continued use of existing HID fixtures. This phase-down also recognizes that no other jurisdiction is prohibiting these lamps at this time. The import and manufacture of these lamps will continue to be monitored by the Department.

Lamps used to grow plants

Amendments were proposed to prohibit fluorescent and discharge lamps used to grow plants on December 31, 2028, and to allow replacement lamps for a three-year transition period thereafter.

Summary of comments: All greenhouse industry representatives consulted were concerned about a prohibition of lamps to grow plants. They explained that although LED lamps are used to grow some types of plants, most crops do not grow well under LEDs and that many years of intensive research would be needed to develop adequate LED lighting. They were also concerned about the costs and time needed to transition to LED lighting, and asked for funding programs to support the industry’s transition.

Response: The Department recognizes the concerns of the greenhouse industry. The Amendments will not prohibit lamps containing mercury for growing plants at this time. These lamps will be listed as an exemption in Schedule 1 to the Regulations, with no end date. The Department will be able to monitor the quantities of lamps imported and manufactured in Canada. This approach also considers that no other jurisdiction has committed to prohibiting these lamps at this time.

Other specialty lamps

Amendments were proposed to prohibit bulbs for automotive headlamps and allow replacement lamps with no end dates. For CCFLs and EEFLs, amendments were proposed to prohibit them on December 31, 2023, but to allow replacement lamps for all uses for a three-year transition period thereafter.

Summary of comments: Representatives of the automotive industry and of electronic products explained that there is a need for replacement lamps in their industries. While all recent models of vehicles and of electronic displays use LED lamps, when automotive headlamps or CCFLs and EEFLs used in older models break, mercury-free retrofit lamps are not always compatible.

Response: The Department aims to allow the continued use of essential electronic products for which no mercury-free alternative exists, and therefore limit their obsolescence, while protecting the health and the environment from mercury. Furthermore, the Minamata Convention exempts mercury-containing CCFLs and EEFLs in digital displays when no alternatives exist. As a result, CCFLs and EEFLs used in digital displays and for which no mercury-free alternatives exist will continue to be exempted, but now under the replacement parts section of the Regulations. For replacement automotive headlamps, they will continue to be exempted with no end date in Schedule 2 to the Regulations.

Summary of comments: A stakeholder expressed satisfaction regarding the exemption for medical lamps containing mercury. Another stakeholder thought that all exemptions for specialty lamps should be reviewed regularly, as mercury-free technology is developing rapidly.

Response: The Department will continue to monitor and periodically review the need for exemptions, including for medical purposes, and welcomes data on mercury-free alternatives to specialty lamps available in Canada, with details on the exact types and applications.

Administrative requirements

Many administrative amendments were proposed. These amendments include clarifying that labelling requirements include that information in a notice or on a website must be in both official languages to clarify the definition of replacement parts to distinguish them from replacement lamps, to align reporting timelines with those of the U.S. EPA, to render reporting on the quantity of products containing mercury exported mandatory, and to broaden the accreditation bodies recognized under the Regulations to include signatories of the ILAC MRA.

Summary of comments: Lighting associations asked that any changes to labelling requirements be aligned with those of Natural Resources Canada. One of these stakeholders also recommended that labelling requirements not be changed for lamps being phased out, as they were worried about the potential negative effects on the consumer markets. Some stakeholders also had suggestions regarding the definition of replacement parts.

Response: The Department understands the concerns of the industry. However, the purpose of the modifications to the labelling requirements is to improve the level of awareness of consumers and facility workers who are recycling products containing mercury, by clarifying that the information must be available in both official languages on the websites indicated on the labels. By providing 12 months between the publication of the Amendments and their coming into force, the Department considers that the industry will have enough time to implement this change where — and if — required. Regarding the definition of replacement parts, the Department has reviewed it and does not intend to modify it. Discussions have been held with Natural Resources Canada, and it was concluded that there was no need to harmonize labelling requirements.

Concerns specific to Indigenous partners

Summary of comments: Several Indigenous partners shared their concerns regarding the presence of mercury in products. In addition to comments summarized in the previous sections, they were concerned about the health issues and environmental impacts resulting from a lack of availability of proper disposal and recycling for mercury-containing lamps. They were especially concerned for people living in remote communities, in Canada’s North and in the Atlantic provinces. They were also concerned about mercury releases from cremation.

Response: The Government recognizes that Indigenous and remote communities face a lack of proper disposal and recycling facilities, including in Canada’s North and in the Atlantic region. The Department is looking to reduce the risks of exposure that Indigenous communities are facing by prohibiting products containing mercury that are no longer considered essential. This will, over time, limit the releases from mercury products ending in landfills. The Government is actively working to investigate and take action on releases from all sources, including crematoria, in collaboration with provinces, territories and municipalities who are primarily responsible for permitting industrial facilities. The Government is committed to working with First Nations, Métis, and Inuit based on a Nation-to-Nation, government-to-government, and Inuit-Crown relationship.

The Code of Practice^{footnote 31} provides guidance on end-of-life management of lamps containing mercury. It is a voluntary tool developed by the Department to complement existing provincial, territorial, and other initiatives, and to promote best practices for collecting, storing, transporting and processing end-of-life mercury-containing lamps, including considerations for northern and remote areas. Provinces and territories are regulating mercury lamps through extended producer responsibility (EPR) programs. EPR is a policy that extends the responsibility for end-of-life management to a product’s manufacturer, first importer or brand owner. EPR programs for lighting, which are administered by Product Care Recycling,^{footnote 11} are in place in five provinces (B.C., Man., Ont., Que. and P.E.I.), with Nova Scotia starting on January 2025.^{footnote 12} These EPR programs provide province-wide collection networks for lamps to over 80% of Canadians.

Modern treaty obligations and Indigenous engagement and consultation

An assessment of modern treaty implications (AMTI) conducted in accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation concluded that the Amendments will not impact modern treaty rights nor obligations. Thirteen Indigenous partners in Canada received letters inviting them to the consultations as part of the regulatory amendment process. In the 2018 pre-consultations, one of them submitted comments to the Department. In the 2023 public consultations, four Indigenous partners submitted written or verbal comments. Although the comments were generally supportive of the proposed Amendments, concerns were raised, especially regarding the health and environmental impacts of dental amalgam and improper disposal of lamps containing mercury. These issues are discussed in more detail in the “Consultation” section above.

Instrument choice

To meet the objectives outlined above, it was determined that the only viable option was to amend the Regulations. Non-regulatory options, such as voluntary agreements, were not considered.

Maintaining the status quo was not considered to be a viable option as this would not reduce the risk of exposure to toxic mercury compounds to the extent feasible. In addition, the administrative requirements for exempted products that are no longer manufactured or sold in the Canadian market would persist due to these products being listed in Schedule 1 of the Regulations. This would continue to impose an unnecessary burden on regulated parties to comply with the administrative requirements under the Regulations. For these reasons, maintaining the status quo was not considered.

Amending the current Regulations will decrease the risk of exposure to toxic mercury compounds, allow for an alignment with new provisions under the Convention, and ensure businesses are not bearing an unnecessary burden. In the absence of amended Regulations, it is unlikely that mercury levels in products would be reduced, or that mercury-containing products would be phased out as quickly, if at all.

Regulatory analysis

Benefits and costs

Summary of costs and benefits

From 2026 to 2035, the Amendments will be expected to reduce the quantity of mercury released to the environment by 681 kg, including a reduction of 104 kg of mercury released to air. The cumulative discounted benefits of the Amendments over the 10-year time frame of the analysis are valued at $5.16 billion, while the total discounted costs of the Amendments are estimated to be approximately $208 million — these costs are associated with higher costs paid by consumers for switching to more expensive, mercury-free lamps. The benefits are broken down as follows: $3.86 billion in energy savings from switching to more energy efficient lamps; $1.30 billion in avoided greenhouse gas (GHG) emissions; $743,180 due to the health benefits of avoided mercury releases to air, and $20,750 in net administrative cost savings. The overall quantified and discounted net benefits of the Amendments are estimated to be $4.95 billion.

Analytical framework

To forecast the impact of the Amendments, a study^{footnote 13} was commissioned for the Department in order to obtain data on lamp costs, historical sales, and projected sales of mercury-containing and LED lamps in Canada. The projected sales of lamps, in addition to the estimated input of mercury in lamps, was used in conjunction with the Department’s mercury mass balance model to estimate the avoided releases of mercury to the environment. The mass balance model provides estimates for percentages of mercury released to the environment (by air, water or land) at each life cycle stage of a lamp — from manufacture through use, storage, transport, disposal, and recycling. This analysis followed the projected number of lamps sold in the baseline and regulatory scenarios through their life cycle to determine the avoided releases that would result from the Amendments.

The incremental impacts contained in this analysis were calculated using a baseline and regulatory scenario approach. Where possible, all costs and benefits were quantified in 2022 Canadian dollars with a 2% discount rate where dollars are presented in present value terms. The analysis begins in 2026 and extends to 2035 for a 10-year time frame. Where it was not possible, or if sufficient information was not available to quantify the impacts of the Amendments, impacts were instead described in qualitative terms.

Updates to the analysis following publication of the proposed Amendments in the Canada Gazette, Part I

Since the publication of the proposed Amendments in the Canada Gazette, Part I, updated guidance on the social cost of GHG emissions (including carbon dioxide) was published by the Department. These new values for the social cost of GHGs have been integrated into the analysis for the Amendments to more accurately value the benefit of avoided global damages from climate change, reflecting the recent state of climate science. To ensure consistency with the methodology used to determine the updated social cost of GHGs, the analysis has also updated the discount rate to 2%. Additionally, there is a decrease in the quantity of mercury-containing lamps switching to LED in the updated analysis. This is a result of the exemption for plant-growing lamps and the coming into force date being pushed forward, which reduce the incremental lamp switching in the analysis due to the decreasing sale of mercury-containing lamps expected in the baseline over time.

Furthermore, prices have been updated to be presented in 2022 Canadian dollars, and the base year to discount costs and benefits to present value has been updated to 2024. In total, these updates led to an increase in the estimated net benefit from $3.76 billion to $4.95 billion. Reductions in mercury released to the environment have decreased from approximately 775 kg to 681 kg, reflecting the reduced number of mercury-containing lamps switching to LED in the updated analysis. Despite a modest decrease in GHG reductions attributable to the Amendments, from 4.7 Mt to 4.6 Mt, the increased value of GHG reductions has increased the associated benefits from $237 million to $1.3 billion over the period of the analysis.

Baseline scenario

The baseline scenario is developed under the assumption that the Amendments are not implemented. This scenario is based on a study conducted for the Department that provided information on the price and quantity sold of each lamp type, both historically and forecast to 2035. This study contains data on fluorescent, HID, incandescent, halogen, and LED lamps. Most of these lamps are for general lighting purposes and are therefore purchased by both industrial and household consumers. The sales of mercury-containing lamps are expected to decrease significantly in the baseline scenario, with fluorescent lamp sales in 2035 falling to approximately a quarter of their 2023 levels, and HID lamps for general lighting purposes no longer being sold by 2028.

Regulatory scenario

Under the regulatory scenario, manufacturers and importers of mercury-containing lamps are assumed to comply with the Amendments and switch to mercury-free alternatives. The regulatory scenario in this analysis takes into consideration this switch to mercury-free alternatives (assumed to be LED lamps), including the 2-year period when the manufacturing and importation of replacements for most lamp types are permitted.

This analysis assumes that the number of lamps sold remains constant, with only the type of lamp sold being changed for the first few years. However, in the later years of the analysis, the total number of lamps sold decreases due to LED lamps having longer lifespans than mercury-containing lamps and thus not needing to be replaced as frequently. The analysis assumes a 20-year average life for LED lamps, 7 years for CFLs, 10 years for LFLs, and 5–8 years for HID lamps. Though the sale of all types of mercury-containing lamps is decreasing in the baseline scenario, this phase-out is accelerated in the regulatory scenario, where prohibition dates on new and replacement lamps are specified. This acceleration leads to both costs and benefits that are associated with the Amendments. The benefits of switching to longer-lasting lamps are not fully captured in this analysis, as the period of analysis needed to fully capture these savings was not considered, given that the estimated benefits already considered in the analysis far exceed the estimated costs. The quantity of lamps forecast to be sold over the course of the analysis in each scenario is shown in Figure 1 below.

Figure 1: Lamp sales in the baseline and regulatory scenarios

Figure 1: Lamp sales in the baseline and regulatory scenarios - Text version

Figure 1 illustrates a line graph. The vertical axis represents the number of lamps forecast to be sold, and the horizontal axis represents the year. The numbers on the vertical axis range from zero to 200 million, in 20 million increments. The years on the horizontal axis range from 2024 to 2035. There are four lines on the graph. The first is a line representing the number of mercury-containing lamps expected to be sold in the baseline scenario. This line starts around 40 million and has a slight negative slope through to 2035 where it ends at around 10 million lamps. The second line illustrates the number of mercury-containing lamps estimated to be sold in the regulatory scenario. The line starts at roughly 40 million and follows the baseline scenario line until 2025 where it begins to diverge, decreasing more quickly than the baseline scenario line until it reaches near zero in 2028, and remains flat until 2035. The third line demonstrates the expected trajectory of LED lamp sales in the baseline scenario. This line begins around 130 million in 2024 and has a positive slope throughout the timeframe, ending in 2035 around 175 million. The fourth and final line represents the number of LED lamps expected to be sold in the regulatory scenario. This line follows that of the baseline scenario from 2024 to 2025, where it then diverges. It increases until 2032 where it peaks at around 180 million, and falls to roughly 170 million in 2035.

Costs

There are expected to be incremental lamp purchase costs for some consumers, and minor incremental administrative costs for importers and manufacturers that will be offset by other administrative cost savings. No other costs have been estimated in this analysis.

Costs to manufacturers, importers, and consumers

The Amendments will decrease the maximum quantity of mercury contained in some lamps manufactured or imported into Canada and will enforce a prohibition date for the manufacture and importation of mercury-containing lamps. It is not expected that manufacturers and importers will bear any additional capital costs associated with complying with the Amendments. Lamp manufacturers are not expected to bear costs to comply with the mercury content limits, as Canada no longer manufactures the lamps that are subject to lowered limits in Schedule 1 of the Amendments. There should be no additional costs for lamp importers since alternative products are already widely available on the Canadian market and the higher costs of LED lamps are expected to be passed on to consumers. There will be some administrative costs, but these are offset by cost savings. This is presented in the “Net administrative cost savings” section below. LED lamps are, on average, more expensive to purchase than their mercury-containing counterparts. They also have a much longer life — lasting, on average, 20 years, while most mercury-containing lamps have an average life of 5–10 years. Although sales of mercury-containing lamps are projected to decrease over time in the baseline scenario, the Amendments will accelerate the switch to LED lamps, in particular for CFLs and LFLs. This accelerated switch to LEDs in conjunction with the higher price of LEDs will cause consumers to bear an incremental cost associated with the Amendments. For fluorescent lamps, the incremental cost ranges from $0.15 to $2.70 per lamp in 2026 and decreases over time to less than $2.00 per lamp in 2035, with the LED equivalent of pin-base CFLs being less expensive than the mercury-containing equivalent in this year. The longer lifetime hours of LED lamps, however, will lead to cost savings in the long term, as consumers will not need to purchase replacement lamps as frequently.

A study done for the Department provided a forecast for price and quantity of lamps for each lamp type up to 2035 (ICF Study). To calculate the incremental cost to consumers, costs were calculated (price × quantity), then compared in the baseline and regulatory scenarios. Over the 10-year time frame of the analysis, it is estimated that consumers will spend an additional $208 million to switch from mercury-containing lamps to LED lamps in the first 10 years of the Amendments.

Most mercury-containing lamps can be easily substituted for LED lamps; however, some lamp fixtures could need to be replaced to accommodate the switch to LEDs. Due to a lack of data on the number of fixtures requiring replacement and the costs associated with this task, this analysis was unable to quantify the costs of fixture replacement.

Costs to Government

The Government is not expected to incur any additional costs beyond the need to inform stakeholders of the Amendments. This is because the current regulatory framework is expected to remain the same and the existing implementation, compliance, and enforcement policies and programs will continue to apply.

Benefits

The Amendments are expected to reduce mercury releases and GHG emissions. There are also expected energy savings that should offset most or all of the consumer purchase costs. As well, the Amendments are designed to reduce the administrative burden for businesses.

Release reductions

Over the 10-year timeline of the analysis, as visualized in Figure 2, from 2026 to 2035, the Amendments will reduce the releases of mercury to the environment by approximately 681 kg, which represents a 91% reduction in environmental mercury releases relative to the baseline scenario. Mercury releases are expected to decrease over time in the baseline scenario as mercury-containing lamps are replaced by mercury-free alternatives; however, these reductions are expedited in the regulatory scenario. In 2026, the expected annual release reduction will be 77 kg, and, in 2035, 41 kg. The sum of avoided releases (681 kg) can be broken down between releases to land (85% or 576 kg), air (15% or 104 kg), and water (0.2% or 1.4 kg).

Figure 2: Estimated impact of the Amendments on releases of mercury to the environment from lamps

Figure 2: Estimated impact of the Amendments on releases of mercury to the environment from lamps - Text version

Figure 2 illustrates a line graph. The vertical axis represents the estimated lifetime quantity of mercury released from lamps in kilograms, and the horizontal axis represents the year the lamp is sold. The numbers on the vertical axis range from zero to 140, increasing in increments of 20. The years on the horizontal axis range from 2024 to 2035. There are two lines on the graph. The first line represents the quantity of mercury expected to be released by lamps in the baseline scenario. This line begins just under 140 kilograms in 2024 and has a negative slope, decreasing to roughly 40 kilograms in 2035. The second line represents the quantity of mercury in kilograms released from lamps in the regulatory scenario. This line begins just under 140 kilograms in 2024 and follows the baseline scenario line until 2025. Beyond 2025, the regulatory scenario line diverges from the baseline scenario. It decreases at a faster rate, reaching near zero kilogram in 2028 and remaining flat until 2035.

Health benefits

Exposure to both elemental mercury and the more toxic methylmercury can pose a number of risks to human health. Methylmercury is absorbed through the human digestive tract and distributed throughout the body. The primary route of human exposure to mercury is by consumption of fish or fish-eating mammals with heightened levels of methylmercury. Methylmercury readily enters the brain, where it may remain for a long period of time.

Exposure to methylmercury can cause degenerative effects with respect to brain development, particularly in fetuses and children. In a pregnant woman, it can also cross the placenta into the fetus, building up in the fetal brain and other tissues. Methylmercury can also be passed to the infant through breast milk. A child’s developing nervous system is particularly sensitive to methylmercury. Depending on the level of exposure, the effects can include a decrease in intelligent quotient scores, delays in walking and talking, lack of coordination, blindness, and seizures. In adults, extreme exposure can lead to health effects such as personality changes, tremors, changes in vision, deafness, loss of muscle coordination and sensation, memory loss, intellectual impairment, permanent brain and kidney damage and even death. In addition, other possible health outcomes associated with mercury exposure include cardiovascular and carcinogenic effects.

Some studies have attempted to quantify the value of reducing mercury emissions. One such study, Rice and Hammitt (2005),^{footnote 14} has done so through estimating the health benefits of a proposed mercury emissions limit from power plants in the U.S. Assuming a non-zero impact threshold, Rice and Hammitt estimate the benefits to be between $3,900 and $4,500 per kilogram of mercury emissions avoided in 2000 U.S. dollars.

The analysis for the Amendments employed the lower value in this range. Adjusting this value to 2022 Canadian dollars provides an approximate benefit of $8,000 per kilogram of avoided mercury emissions. The lower value was chosen as a conservative estimate, in addition to remaining consistent with the methodology of the 2014 analysis of the existing Regulations. It is important to note that the study done by Rice and Hammitt was based on the U.S. population and that, since impacts are driven by the size of the exposed population, it is reasonable to assume that Canadian health impacts may be lower in the range of values due to its smaller population and lower population density.

The monetized estimate employed in this analysis to estimate the impacts of avoided mercury releases is only applied to the avoided emissions to air. The Department conducted a mass balance analysis to determine the mercury releases to air, water and land. In this analysis, avoided emissions to air are estimated to make up approximately 15% of the expected avoided releases to the environment from the Amendments, with the majority of these avoided releases being to land at landfill sites (almost 85%) and a very minor proportion being direct releases to water (less than 1%). Avoided releases to land and water, though likely to provide benefits to wildlife and ecosystems, are not monetized in this analysis due to a lack of evidence and a high degree of uncertainty regarding the behaviour of mercury in landfill sites. The Amendments will result in estimated avoided releases to air of 104 kg over the period of the analysis, a benefit valued at roughly $743,180.

Environmental benefits

The Amendments will contribute to Canada’s goal of decreasing its GHG emissions by means of transitioning from mercury-containing lamps to more energy-efficient LED lamps. LED lamps generally have higher energy efficiency than their mercury-containing equivalents, and so the Amendments will lead to a reduction in GHG emissions associated with energy production over the course of the analysis. The analysis estimates the quantity of GHG emission reductions from switching to mercury-free lamps. This estimate is attained by calculations that employ, for each lamp type, the estimated number of lamps in use, the average quantity of hours lamps are used per year, the average watts required, and the grams of carbon dioxide (CO₂) equivalent used per kilowatt hour of electricity used. This emissions intensity of energy consumption differs by region, from 2 g of CO₂ equivalent in Quebec to 356 g of CO₂ equivalent in the West. In total, this leads to an estimated 4.1% reduction in energy consumption and a reduction in GHG emissions of approximately 4.6 megatonnes (Mt) over the 10-year analysis. To monetize these benefits, the quantity of avoided GHG emissions each year was multiplied by the Department’s schedule of the value of the social cost of carbon (SCC)^{footnote 15}, which in 2026 is $298 tonne (t) of CO₂ in 2022 Canadian dollars. The benefits of the GHG emissions reductions from energy savings will amount to $1.30 billion over the 10-year timeline of the analysis.

Other environmental benefits associated with the reduction of mercury released to the environment from the Amendments are discussed in qualitative terms as the environmental impacts have yet to be studied and quantified in a manner that is appropriate for cost-benefit analysis. Mercury releases deposit in the environment, affecting the reproduction potential of some wild populations of fish and birds and can cause neurological effects in fish-eating animals. The prohibition on mercury in lamps under the Amendments will decrease the quantity of mercury released to the environment, and thus will result in some benefits to wildlife and ecosystems.

Energy savings

LED lamps, on average, have higher upfront costs than their mercury-containing counterparts; however, LED lamps are more energy efficient. This increased energy efficiency will lead to energy use savings that have been monetized in this analysis using market prices for electricity. To calculate the total energy cost savings from switching to LED lamps, this analysis conducted calculations for each lamp type that took into consideration the average number of hours lamps are used per year, wattage, and the number of lamps in use in the baseline and regulatory scenarios. This resulted in the total amount of energy used, which was then monetized by multiplying energy use by the estimated energy price in each region (Atlantic, Ontario, Quebec, West), obtained from the Department’s 2022 reference case.^{footnote 16}

The average population weighted energy price across Canada in the forecast is $132.24/MWh in 2026, increasing to $150.96/MWh in 2035 in constant 2022 dollars. To illustrate these calculations, the first year when prohibitions take effect for most lamp types on both new and replacement lamps can be examined as an example. In 2028, energy costs are estimated to be ¢0.0139 per watt hour. Lamps are used approximately 1 000 to 3 500 hours each year, and mercury-containing fluorescent lamps typically use 13 W to 25 W per hour, while their LED equivalents typically use only 8 W to 14 W per hour. So in 2028 it is estimated that each LED replacement for fluorescent lamps will save about $3.94 on average in energy costs per year.

In 2028, 25.1 million fluorescent lamps are forecast to be sold. If all of those lamps were switched to LED lamps, energy savings would amount to approximately $98.9 million in 2028 alone. Each year in the analysis, there are energy savings from new lamps that have transitioned to LED in that year in addition to the lamps that transitioned in the previous years, so the energy savings become cumulative. Over the 10-year time frame of the analysis, it is estimated that consumers will save, in aggregate, approximately $3.86 billion.

Payback analysis/Energy paradox

Given that the savings associated with these Amendments appear to be quite large, there is some uncertainty about why consumers do not recognize the long-term savings that will accrue from purchasing more expensive but much more efficient lamps. It could be the case that consumers have already largely switched to LEDs in which case the impacts of the Amendments will be proportionally lower. Some recent reports on the number of mercury-containing lamps manufactured and imported in recent years indicate that this is a possibility. Alternatively, the degree of energy savings may not be obvious to many consumers. In this case, it may take time for consumers to become aware of the benefits of newer technology. It may also be that the analysis has not considered other upfront costs (such as the potential need to change fixtures to accommodate different lamps). In addition, it may be that some consumers require the “nudge”^{footnote 17} that the Amendments will provide by changing their purchasing habits from cheaper to more expensive lamps that save money over time.

Net administrative cost savings

The 110 regulated parties will carry upfront administrative costs from familiarizing themselves with the Amendments. It is estimated that lamp importers and manufacturers will require three hours, while other stakeholders will require one hour for learning about the Amendments, for a cumulative cost of $17,350 in the first year of the analysis.

The Amendments will prohibit six categories of products that are currently exempted but that are no longer in use in Canada. Additionally, all mercury-containing lamp manufacturing and imports, except those used for air and water treatment, for growing plants, as well as specialty fluorescent and discharge lamps falling under the catch-all category, will be prohibited by 2028. The majority of these lamps will be prohibited on December 31, 2025, with a two-year interim period when replacement lamps will be permitted before the full prohibition takes place on December 31, 2027. High intensity discharge lamps used for general lighting in new lighting fixtures will be prohibited on December 31, 2028, but replacement lamps will continue to be exempted with no end date. Once exempted products become prohibited, regulated parties will no longer be permitted to import or manufacture these products and, therefore, will no longer need to comply with reporting obligations. The administrative cost savings associated with the decrease in reporting required will amount to $38,100 over the period of the analysis for a net administrative cost savings of $20,750.

• Number of years: 10 (2026 to 2035)
• Dollar year for costing: 2022
• Present value year for discounting: 2024
• Discount rate: 2%

Table 1: Summary of monetized benefits (in millions)

Monetized benefits	Undiscounted — 2026	Undiscounted — 2030	Undiscounted — 2035	Discounted — total	Annualized
Estimated monetized benefits to human health (avoided health issues) due to reduction in mercury releases to air from lamps	$0.09	$0.09	$0.05	$0.74	$0.08
Estimated and monetized energy savings from switching to more energy-efficient lamps	$93.62	$547.23	$647.27	$3,856	$429.33
Estimated and monetized benefits of avoided GHG emissions	$27.66	$161.82	$195.47	$1,302	$145.02
Estimated monetized net administrative savings (costs)	($0.02)	$0.0	$0.0	$0.02	$0.0
Estimated monetized total benefits due to the Amendments	$121.4	$709.1	$842.8	$5,160	$574.4

Cost-benefit statement: Monetized costs and benefits associated with the Amendments are summarized below in Table 2.

• Number of years: 10 (2026 to 2035)
• Dollar year for costing: 2022
• Present value year for discounting: 2024
• Discount rate: 2%

Table 2: Summary of monetized benefits and costs (in millions)

Monetized impacts	Undiscounted — 2026	Undiscounted — 2030	Undiscounted — 2035	Discounted total	Annualized
Total benefits	$121.4	$709.1	$842.8	$5,160	$574.4
Total costs (savings)	$55.9	$46.9	$(61.6)	$208	$23.2
Net benefits	$65.5	$662.2	$904.4	$4,952	$551.2

Note: By 2033, fewer lamps are sold in the regulatory scenario, as LED replacement lamps last longer.

Table 3 presents the estimated quantified incremental benefits, and Table 4 qualitatively describes the impacts that could not be quantified in this analysis.

Table 3: Quantified impacts

Quantified benefits (cumulative)	Amount
Reduction in mercury releases from lamps to the environment	681 kg
Reduction in mercury releases from lamps to air	104 kg
Avoided GHG emissions	4.6 Mt

Table 4: Qualitative impacts

Qualitative impacts	Description
Cost to update light fixtures	It is expected that some lamp fixtures will need to be replaced to accommodate the switch to LEDs; however, the Department was unable to estimate the quantity necessary and associated cost of replacement.
Environmental benefits	It is expected that there will be benefits for wildlife and ecosystems commensurate with the reduction of mercury in products in Canada. Mercury impairs reproduction potential in some species of fish and birds and has neurological impacts on fish-eating animals.
Health benefits for Canadians	In addition to damage to the central nervous system, human exposure to mercury is known to cause damage to the lungs, nerves and kidneys. The Amendments will limit mercury exposure from products through reduced releases of this substance to the environment.
Lamp replacement cost-savings	LED lamps have longer lifespans than their mercury-containing equivalents, thus there will be labour cost-savings for consumers who need to replace lamps in difficult to access areas.
Aligning with the Minamata Convention	Maintaining Canada’s international commitments under the Convention can encourage other countries to reduce their mercury releases. This could have important consequences for Canada, as mercury is a transboundary toxic substance that has severe impacts in the Arctic, which acts as a sink for mercury emitted from all parts of the world.

Sensitivity analysis

The results of the cost-benefit analysis described above are based on key parameter estimates; however, the true values may be higher or lower than those projected. To account for this uncertainty, sensitivity analyses were conducted to assess the effect of higher or lower estimates on the overall impact of the Amendments.

Fewer mercury-containing lamps sold in baseline scenario: The central case analysis relies on data provided by the aforementioned ICF study to estimate the costs and benefits associated with the Amendments. Recent data collected by the Department has shown that actual imports and manufacturing of mercury-containing lamps may be as few as half of what is estimated in the study. If fewer mercury-containing lamps are sold in the baseline scenario, it is expected that both the incremental costs and benefits will be reduced proportionally. Therefore, a sensitivity analysis was conducted to estimate what the impacts of the Amendments will be if 50% fewer mercury-containing lamps are sold in the baseline scenario. This sensitivity analysis shows that incremental impacts under this scenario will amount to a net benefit of approximately $2.48 billion.

Consumer costs: Through the ICF study, the Department obtained projections of the future prices of various lamp categories. These prices were used to estimate the cost of switching from mercury-containing lamps to mercury-free lamps from 2026 to 2035; however, true future price estimates are difficult to predict. Therefore, sensitivity analyses show the overall impact on net benefits if consumer costs that are 50% more and 50% less expensive are considered. This produced a range of net benefits from $4.85 billion to $5.06 billion.

Higher health impacts from reducing releases of mercury to air: When calculating the health impacts of mercury releases, the lower-bound estimate from Rice and Hammitt (2005) was used ($3,900 in 2000 USD). A sensitivity analysis was conducted to estimate the impact of employing the upper-bound estimate ($4,500 in 2000 USD, equivalent to approximately $9,250 in 2022 CAD) and found that health benefits increase from $743,180 to $857,520.

Number of lamps sold prior to prohibition: In the central case, the analysis uses forecast estimates for the number of lamps sold and applies the prohibition dates for new and replacement lamps sold to the regulatory scenario. In this case, over the two years when only replacement lamps are permitted, the number of lamps sold is estimated through projections supplied by a study that forecasts the number of lamps that are new and replacements for each year (ICF Study). The sensitivity analysis considers two additional scenarios. The first scenario assumes there is no reduction in lamps sold relative to the baseline scenario during the time allotted for replacement lamps to be sold (i.e. the total number of lamp sales that were projected in the baseline scenario is assumed to be sold in these years). The other scenario estimates the impacts of no lamps being sold during this time period (i.e. mercury-containing lamp sales during the replacement period are equal to zero). These changes to the number of mercury-containing lamps being sold prior to prohibition produces a range of net benefits from the Amendments of $4.91 to $5.03 billion.

Higher upfront costs: In the central case, upfront costs for replacing fixtures are included qualitatively in the analysis. There is little information on how many fixtures may require replacing and on what this cost may be. With advances in technology, many LEDs are simply drop-in replacements for their mercury-containing counterparts. Even straight fluorescent tubes can often be directly replaced by plug-and-play LED lamps. However, some fixtures could require replacing. Total costs of the Amendments will need to be around 24 times that of the current costs before the Amendments become net cost regulations. In 2028, the undiscounted net benefit of the Amendments is $351.6 million and incremental straight fluorescent LED equivalent lamp sales are 18.1 million, which works out to a breakeven price of approximately $19 per fixture, if all lamps require new fixtures. To date, industry commentators have suggested that new light fixtures may be needed for some LED replacement lamps, but no data have been provided to support this claim.

Discount rate: Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals^{footnote 18} states that a 7% real discount rate should be used for most cost-benefit analyses. For some regulatory proposals, such as those relating to human health or environmental goods and services, guidance states that it is more appropriate to employ a social discount rate, in which case a 2% social discount rate should be used. The central case reported in Table 2 employed a 2% social discount rate; however, a sensitivity analysis was conducted using the 7% real discount rate to compare estimates. The use of the higher discount rate results in an overall net present value of $3.49 billion, down from $4.95 billion when using the lower discount rate.

Table 5: Sensitivity analysis

Variable(s)	Sensitivity case	Total net benefits (millions)
Central case	N/A	$4,952
Mercury-containing lamps sold in baseline scenario	50% lower	$2,476
Lower consumer costs	50% lower	$5,056
Higher consumer costs	50% higher	$4,848
Mercury emissions	Rice and Hammitt upper-bound	$4,952
Fewer mercury-containing lamps sold prior to prohibition	Mercury-containing lamp sales during the replacement period are equal to zero	$4,910
More mercury-containing lamps sold prior to prohibition	Mercury-containing lamp sales during the replacement period are equal to the baseline scenario sales	$5,033
Discount rate	7%	$3,490

Distributional analysis of regulatory impacts

Throughout the time period of the analysis (2026–2035), societal benefits were estimated to far outweigh the societal costs associated with the Amendments. These costs and benefits, however, are not expected to be evenly distributed throughout society. Most mercury-containing lamp types are projected to phase themselves out prior to the time period in which the Amendments will intervene. Therefore, the incremental costs associated with the Amendments will predominately be borne by consumers of fluorescent lamps (compact fluorescent, straight fluorescent and non-linear fluorescent lamps). The impacts of GHG emissions are global in nature and, as such, their reductions will similarly be beneficial to all. Additionally, all lamp purchasers in Canada will be expected to benefit from energy savings associated with switching to more energy efficient lamps. Regions in Canada with higher electricity rates would be expected to benefit more from the energy savings associated with the Amendments, all else being equal. Although mercury exposure is toxic for all people, those groups who face a higher risk of mercury exposure, such as Indigenous Peoples, will be more likely to benefit from reductions in releases of mercury.

Competitiveness impacts

The Amendments are not expected to harm the economic competitiveness of lamp manufacturing in Canada. Within the domestic market, both manufactured and imported lamps will be subject to the same maximum quantities of mercury allowed to be contained in these products and the same prohibition dates. For exporters, it is not expected that the Amendments will impact the competitiveness on the global market. Based on data collected by the Department, there are no Canadian lamp manufacturers that are exporting lamps to other countries, and other regions such as the U.S., the EU and Parties to the Minamata Convention are adopting similar phase-outs for mercury-containing lamps. Additionally, it is expected that consumers will bear the burden of compliance costs, as they will carry the additional costs of purchasing LED lamps which tend to be priced higher than mercury-containing lamps.

Small business lens

Approximately 30 out of 110 Canadian regulatees will be considered small businesses. The majority of mercury in products comes from large industries manufacturing products such as dental amalgam and lamps. However, there are three categories of products that are imported or manufactured by at least one small business in Canada: lamps, measuring instruments and reference material used in specific medical and research applications, and catalysts used in the manufacturing of polyurethane.

The Amendments will not provide specific flexibilities to small businesses, such as exceptions, for a variety of reasons. Exceptions for small businesses with respect to phasing out or prohibiting products containing mercury would allow small businesses to import or manufacture products with mercury content limits that either exceed the specified limits or that do not respect the prohibition faced by other regulated parties. Such a scenario would reduce the benefits to Canadians associated with reductions in exposure to mercury releases from products and could place Canada in non-compliance with its obligations under the Convention. Moreover, exceptions for small businesses could introduce an incentive for companies to split into smaller entities in order to avoid future compliance costs, which would create a non-level playing field for importers and manufacturers operating in Canada.

Historically, it was predominantly small businesses in Canada that imported or manufactured neon signs (i.e. cold cathode tubing for signage or cove lighting and electrodes for use in cold cathode tubing for signage or cove lighting). The Amendments will add an end date to the exemptions for mercury-containing neon signs, as neon signs with LED lamps have replaced these products in the majority of cases in the Canadian market. Since the publication of the 2018 consultation document, the Department has not received any comments opposing the proposal to prohibit the importation or production of neon signs containing mercury in Canada. Nonetheless, some stakeholders have expressed an interest in an allowance under the Amendments to repair existing neon signs containing mercury that have historical value, as required. Therefore, the repair activity for neon signs installed before the coming into force of the Regulations will be allowed.

Table 6 below shows the administrative costs and cost savings (benefits) that would be expected to result from the Amendments. Small businesses would assume costs of $4,892 or $163 per small business over the time period of the analysis. These costs would be offset by cost savings that equate to approximately $10,667, or $356 per small business. Overall, the Amendments are expected to result in net cost savings for small businesses in the amount of roughly $5,775, or $193 per business between 2026 and 2035.

Table 6: Small business lens summary

Notes:

• Number of small businesses impacted: 30
• Number of years: 10 (2026 to 2035)
• Base year for costing: 2022
• Present value base year: 2024
• Discount rate: 2%

Costs and benefits	Annualized value	Present value
Administrative cost savings	$1164	$10,667
Administrative costs	$534	$4,892
Total net cost savings (all impacted small businesses)	$630	$5,775
Net cost savings per impacted small business	$21	$193

One-for-one rule

The Amendments will result in a net decrease in administrative burden and, therefore, the Amendments will be considered an “OUT” under the one-for-one rule. Regulated parties will bear a one-time fixed cost to familiarize themselves with the Amendments, and manufacturers and importers of LFLs will assume costs associated with additional reporting requirements. These costs will be offset by administrative cost savings, given that the Amendments will remove a number of regulated products from Schedule 1 to the Regulations, and therefore remove the requirement for businesses to keep records of and report on these products. The Amendments will lead to an overall decrease of approximately $625 in annualized administrative costs, or $7 per regulated business over the first 10 years (2024–2033).^{footnote 19}

Regulatory cooperation and alignment

The main driver for the Amendments is alignment with the requirements for mercury-containing products of the Minamata Convention. More specifically, the mercury content limits of one product category exempted under the Regulations needs to be lowered to align with the Convention. In addition, setting end dates for the exemptions for fluorescent lighting and photographic film and photographic paper will enable Canada to ratify the newly adopted phase-out of these products under the Convention.

It should be noted that the current Regulations are more stringent than some regulations in other international jurisdictions. However, there are a number of policies and programs internationally that are aiming to phase out mercury-containing products, including fluorescent lighting, and the Amendments would help Canada align with these international initiatives.

The EU, via two regulations, has phased out fluorescent lighting in Europe in 2023, which other countries, including Norway, Switzerland and the United Kingdom, have followed. The RoHS Directive includes mercury content limits for certain lamps.^{footnote 20} Under the RoHS Directive, mercury-containing products cannot be placed on the market unless an exemption is granted, most of which would be discontinued for general lighting purposes as safer mercury-free alternatives are widely available.^{footnote 21} The Amendments will also offer the opportunity to align with the European Commission Regulation (EU) No. 848/2012 and the EU’s Mercury Regulation, which place restrictions on the production of mercury-containing catalysts used in the manufacturing of polyurethane.

In the U.S., the EPA requires reporting from persons who manufacture or import mercury or mercury-containing products.^{footnote 22} The Interstate Mercury Education and Reduction Clearinghouse (IMERC), which comprises 13 member states, collects and manages data on mercury-containing products, makes information on mercury-containing products available to the public and industry, and provides best practices to member states concerning exemptions, labelling and waste management of mercury-containing products.^{footnote 23} In addition, the state of California has adopted in 2022 legislation prohibiting the sale and distribution of the most common fluorescent lamps.^{footnote 24} Similarly, the state of Vermont has adopted in 2022 legislation to phase out all general purpose fluorescent lamps, including CFLs and LFLs.^{footnote 25}

The 16 countries that comprise the Southern African Development Community have adopted lighting standards that phase out all CFLs and LFLs by 2024.^{footnote 26} Similarly, the East African Community, consisting of 6 countries, is undergoing a standardization process to phase out all CFLs and LFLs by 2024 in order to shift to LEDs. In addition, the International Energy Agency, of which Canada is a member, calls for all lighting sales to be switched to LEDs in 2025 in its 2021 report “Net Zero by 2050 — A Roadmap for the Global Energy Sector.”

At the fourth and fifth meetings of the Conference of Parties to the Convention in 2022 and 2023, the African Region and the EU submitted proposals to phase out specific categories of mercury-containing lamps for general lighting purposes, considering the widespread availability of affordable LED alternatives to mercury-containing fluorescent lamps.^{footnote 27,footnote 28} Together, these proposals effectively would phase out all mercury-containing lamps for general lighting purposes that were not already covered by the original text of the Convention. The Conference of Parties agreed to amend the Convention text to require the phase-out of these remaining lamp types with phase-out dates for each category ranging from 2025 to the end of 2027, depending on the lamp type. At these meetings, Parties also agreed to phase out additional mercury-added products, such as photographic film and paper, and the production of polyurethane using mercury-containing catalysts by 2025, and to not allow the use of mercury in bulk form by dental practitioners.

By means of the Amendments, Canada will meet the original Convention requirements by lowering the mercury content limits for certain products covered by the Regulations and removing exemptions for others. In addition, Canada goes beyond the requirements of the Convention by broadly prohibiting the manufacture and import of mercury-containing products, while allowing for some exemptions. The Amendments will demonstrate Canada’s leadership on the international stage as being the first country to take action towards phasing out the use metal halide lamps in new fixtures. Reducing mercury in products in other countries has important consequences for Canada, as mercury is a transboundary toxic substance that is having a severe impact in the Arctic, where mercury levels have tripled over the past century. Considering most mercury pollution in Canada originates from other countries, Canada’s actions can serve as a model for phasing out mercury-containing products and encourage other countries to reduce their mercury releases.

Strategic environmental assessment

The Amendments have been developed under Canada’s Chemical Management Plan (CMP), a Government of Canada initiative aimed at reducing the risks posed by chemicals to Canadians and their environment. A strategic environmental assessment was completed in 2011 and concluded that regulatory policies developed under the CMP are expected to reduce the risks posed by toxic substances. This anticipated outcome is in line with Goal 3 of the 2022–2026 Federal Sustainable Development Strategy to protect Canadians from air pollution and harmful substances.

Gender-based analysis plus

The Amendments are not expected to result in direct and disproportionate impacts based on identity factors such as race, ethnicity, religion, age, and mental or physical disability. There are, however, indirect and disproportionate impacts of human exposure to mercury.

Mercury levels found in the Arctic are of great concern, as they have increased two to three times over the past century in Canada’s Arctic lakes. By means of a global cycle, mercury tends to accumulate in polar regions, and the Arctic acts as a sink for mercury emitted throughout the entire Northern hemisphere. Disposal of mercury-containing products in the Arctic through open burning, incineration or landfilling can also contribute to mercury levels in the Arctic. Much of the waste in the Arctic is incinerated due to low temperatures most of the year that prevent the use of techniques used in the south.

Furthermore, the 2018 Global Mercury Science Assessment^{footnote 29} estimated that 7% of global mercury emissions came from disposal of mercury-containing products. According to the Canadian Mercury Science Assessment,^{footnote 30} high levels of mercury are also found in fish in some areas of the Great Lakes and are showing increasing trends. Fish in other areas like Kejimikujik (Nova Scotia) also show elevated levels of mercury. The primary route of human exposure to mercury is through consumption of fish or fish-eating mammals with heightened levels of methylmercury. There are particular concerns for subsistence fishers who eat large quantities of fish as part of their traditional lifestyles. Some groups, such as Indigenous Peoples, are more likely to be exposed to methylmercury in higher concentrations than the general Canadian population because of a diet high in fish and seafood. Exposure to even low levels of methylmercury can cause degenerative effects on brain development, particularly in fetuses and children. Further, exposure to methylmercury while in the womb may cause developmental difficulties in children, such as reduction in intelligence quotient scores, delays in walking and talking, lack of coordination, blindness and seizures.

Implementation, compliance and enforcement, and service standards

Implementation

The Amendments will come into force twelve months after the day on which they are published in the Canada Gazette, Part II. For the purpose of implementing the regulatory requirements, the Department will undertake a number of compliance promotion activities. These activities will aim to raise awareness and promote a high level of compliance as early as possible during the regulatory implementation process. The activities will include the following:

• notifying known and potential stakeholders of the Canada Gazette, Part II, publication of the Amendments;
• responding to inquiries about the Amendments;
• developing and distributing basic compliance promotion material (including explanatory notes) nationally to regulated parties and other stakeholders;
• upon request, distributing additional information specific to a given industry sector or region; and
• training the Department’s compliance promotion staff in a comprehensive manner to respond to questions from regulated parties.

The coordination and implementation of compliance promotion activities will be completed through the Products Containing Mercury Working Group, composed of departmental officials from headquarters and regional offices.

The Department will coordinate with Natural Resources Canada and with stakeholder associations, including from the lighting and the building management industries, to inform the public of the phase-out of lamps containing mercury. Compliance promotion activities, such as surveys, will be reviewed from time to time in order to verify whether the Amendments are being implemented effectively and efficiently.

Compliance and enforcement

Since the Amendments will be made under CEPA, enforcement officers will apply the Compliance and Enforcement Policy for the Canadian Environmental Protection Act, 1999 (CEPA, 1999) [the Policy] when verifying compliance with the regulatory provisions. The Policy sets out the range of possible responses to alleged violations, including warnings, directions, environmental protection compliance orders, ticketing, ministerial orders, injunctions, prosecution, and environmental protection alternative measures, which are alternatives to prosecution after the laying of charges following contraventions to CEPA. In addition, the Policy explains when the Department will resort to civil suits by the Crown for cost recovery. Following an inspection or investigation, when an enforcement officer discovers an alleged violation, the officer will choose the appropriate enforcement action based on the Policy.

Service standards

If the conditions specified in the Regulations were met, a regulated party could request a permit to import or manufacture a product containing mercury that is not exempted under the Regulations. Applications for permits would be reviewed by the Department after being submitted to the Minister. The administrative procedure will not be expected to take more than 90 days, once all the required documentation is provided. The Department would make every effort to respond promptly to permit applications. The administrative process will include the following steps: (1) applications will be reviewed in order to verify that the required information has been provided; (2) follow-up letters will be sent to applicants to inform them that their permit applications have been received and, if needed, to request additional information; and (3) duly completed permit applications will be stamped with the date on which they are received. If a permit application were to be rejected, there would be no possibility to appeal the decision.

Compliance with the service standards for processing permit applications would be monitored and evaluated as part of normal regulatory performance measurement and evaluation.

Contacts

Matt Lebrun
Director
Chemical Production and Products Division
Industrial Sectors and Chemicals Directorate
Environmental Protection Branch
Environment and Climate Change Canada
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: Produits-Products@ec.gc.ca

Matthew Watkinson
Executive Director
Regulatory Analysis and Valuation Division
Economic Analysis Directorate
Strategic Policy Branch
Environment and Climate Change Canada
351 Saint-Joseph Boulevard
Gatineau, Quebec
K1A 0H3
Email: RAVD.DARV@ec.gc.ca