Following the Canadian federal elections in March it was predicted that there would be a significant impact on construction and demolition (C&D) waste recycling, driven by a mix of regulatory reforms, strategic investments, and evolving political priorities.
As we enter the second half of the year we caught up with Ken Singer, Publisher & President at Baum Publications, Deanna Woods, Director of People & Product Development at GRT, and Adrian Convery, CDE Business Development Manager, to discuss the issues and opportunities shaping the construction and demolition waste recycling industry across Canada.
Ken, in your role with two key industry publications, Heavy Equipment Guide and Recycling Product News, you are well-positioned to share the pulse of the industry. What are the biggest trends currently shaping Canada’s construction and demolition industry, and how are businesses adapting?
"The Canadian construction and demolition recycling industry is undergoing significant transformation, driven by technological advancements, regulatory changes, and a growing emphasis on sustainability.”
“In parallel, the sorting and separation of C&D materials is growing alongside the offsite processing of these materials which are aided by advancements in specialised equipment that enhance both purity and value of recovered materials. Technology such as robotic sorting, while in its infancy, is showing promise of improving efficiencies and reducing the costs of manual labour.”
“Canada has embraced a transition towards the circular economy at all levels of government by supporting a variety of emerging and developing sectors like selective demolition; dismantling buildings to preserve valuable materials for reuse and recycling. Green Building Certifications, such as LEED, are encouraging the use of recycled and reclaimed materials in construction, promoting more sustainable building practices. The integration of recycled materials, use of recycled concrete, aggregates, reclaimed timber, and recycled steel is becoming more common in construction, reducing the reliance on virgin materials.”
GOVERNMENT REGULATIONS
“Increased government regulation at the federal, provincial, and municipal levels is implementing policies to encourage the recycling of materials and greater use of reclaimed materials. Municipalities are setting ambitious waste diversion targets, pushing the industry towards more sustainable choices. In addition, municipal zero-waste programs are encouraging more sustainable practices, especially in urban redevelopment projects. Challenges such as inadequate waste management infrastructure and inconsistent regulations across jurisdictions remain prevalent. Overcoming these obstacles through more standardized practices and investments in recycling facilities is key for increased market development and adoption.”
“Excess soils management is another critical issue in Canada, and a growing C&D opportunity throughout the country. In Ontario, for instance, the recently introduced Excess Soil Regulation under the provinces’ Environmental Protection Act mandates the tracking, testing, and appropriate reuse, recycling, or compliant disposal of excess soils from construction sites.”
“Similar regulations are being discussed and moving towards adoption in other provinces. Under this regulation, contractors and recyclers must now test soils for contamination, develop reuse strategies, and track soil movements via documentation (like soil passports). This adds complexity, but also presents a significant opportunity for equipment and process manufacturers and recyclers looking to diversify their operations.”
MATERIAL TRANSPORTATION
“The current transportation and disposal of excess soils, especially if they’re contaminated, is expensive and increasingly tightly regulated. Soil must often go to licensed receivers, with fees for tipping and handling the material, and ever-increasing transportation costs. There is debate on how these higher operational costs and the need for better material management planning early in project design stages will effect the construction industry, especially in a period where costs are increasing, margins diminishing, and investment confidence is slowing. This is due to external factors, such as tariffs, which are putting pressure on the construction industry.”
“Some contractors are investing more in soil treatment technologies and prioritizing on-site reuse wherever possible. Nonetheless, the excess soils industry is growing, with firms specializing in screening, washing, and treating soils, including matching clean soils with receiving sites such as brownfield redevelopments.”
“Some contractors are offering soil brokerage and logistical services which integrate with traditional C&D recycling operations. New revenue streams and services are being developed to manage soils sustainably and, hopefully, profitably. Many large excavation contractors are seeing this as a potential area in which to diversify their operations and services they offer to site owners.”
Adrian, could you elaborate on what you are currently seeing in Canada?
“It's really interesting at the moment, with the Liberal government winning the latest election and deciding to keep the industrial carbon pricing.”
“I can see that this is going to drive up the pricing of heavy emitting projects like the cement industry, but it's going to incentivize emissions-reducing projects like recycle aggregates.”
“We have a project in Western Canada where circularity is a big theme, they're looking at how they can reuse as much the material as possible. Historically, on recycling sites like these, the clay has been the biggest waste fraction and finding a home for how we can reuse that was very important. It's now found a use as fly ash alternative in cement production.”
Deanna, GRT is Canada’s first resource regeneration facility. As a leader in this space could you provide an overview of what GRT is doing to recover value from Construction and Demolition waste?
"Every year, millions of tonnes of excavated soil are removed from construction sites and treated as waste. Resource regeneration turns this overlooked stream into a new supply chain: high-quality materials (we call it Regenerock) recovered through soil washing and reuse, not extraction.
By recovering usable resources from excess and unwanted soils, GRT cuts down on landfill use, reduces emissions from long-haul transport, and avoids the carbon cost of quarrying virgin rock. We make infrastructure circular. We give builders and governments a real way to meet climate and procurement goals, on time and on budget."
From your perspective operating a waste recycling business, what are the key drivers for companies to shift from traditional disposal to more circular or sustainable C&D practices?
“The biggest driver is financial: the economics have to make sense for companies to change long-standing habits. If circular solutions can be cost-competitive or offer savings, adoption becomes much easier. Simplicity matters too; if the process is complicated or disruptive to existing workflows, uptake slows. At the same time, there’s a broader societal shift underway as people recognise that our current “take-make-dispose” model is unsustainable.”
“The growing awareness that we can’t keep extracting new resources while discarding old ones is pushing both the industry and the public to look for systems that recover, reuse, and regenerate materials instead of sending them to landfill.”
What are the most common pain points for construction firms when it comes to managing demolition materials and waste?
“Rising soil disposal costs, limited landfill capacity, and the shortage of available greenfield sites in urban areas are major pressure points for construction firms. Regulatory shifts such as mandates for deconstruction over demolition can also create challenges; while the intent is positive, these policies can impose significant financial burdens if deconstruction businesses aren’t given the support needed to scale up and compete on cost.”
Ken - How is the growing focus on ESG (Environmental, Social, and Governance) reporting influencing decision-making in the C&D sector?
“Companies are under growing pressure to reduce the environmental impact of their operations. Waste diversion targets, often tied to ESG reporting, are leading to higher recycling rates, especially in large-scale projects. Municipalities and clients are preferring demolition contractors with strong waste management plans that emphasise recycling and reuse. ESG policies are pushing builders to source materials with recycled content, such as reclaimed wood, recycled aggregates, steel, and excess soils.”
“Firms are now required to report ESG performance more frequently as part of regulatory or investor disclosures. For C&D recyclers, this includes several key metrics such as the volume of materials diverted from landfill, the use of recycled inputs in construction, and emissions from waste transport and equipment.”
“We have also heard of possible carbon offsets. Companies lacking verified data on recycling rates and emissions may lose out on tendered bids. Public infrastructure projects across Canada now include ESG criteria in tender evaluations. Firms with poor environmental records or those lacking transparency are now often disqualified or scored lower.”
Deanna perhaps you could share the operator view on this as well?
Sure, while we haven’t necessarily seen ESG commitments become a primary driver of decision-making in the C&D sector (most choices are still guided by economics) they have helped to raise awareness of sustainability and made circular economy concepts more accessible. This broader recognition benefits companies like GRT, as it lays the groundwork for systemic change. ESG is one tool among many that can help shift the paradigm toward a resource economy built on maximiszing the value of materials already in circulation, rather than relying solely on virgin extraction.
How would you describe the current regulatory landscape around C&D waste in Canada, and what impact is it having on project planning and execution?
The Canadian (and provincial) regulatory landscape is both a challenge and an opportunity. Most existing rules were developed without a circular economy in mind, so in the eyes of the law “waste” remains waste, even if it can be recovered into a high-quality product. This limits reuse in a legal sense and slows innovation. Product specifications also need to evolve, expanding how we define “raw materials” to include recovered resources. Without these changes, efforts to create a more sustainable built environment will be constrained - with knock-on effects for construction costs, housing affordability, and social equity.
Ken, looking ahead, what are your predictions for the future of Canada’s C&D industry over the next 5 to 10 years, and what should businesses do now to prepare?
“Over the next 5 to 10 years, the Canadian C&D industry is expected to undergo substantial evolution, shaped by sustainability goals, environmental regulation, equipment innovation, and public-private collaboration. C&D recycling will become central to a fully circular construction industry in Canada.
Material recovery will continue to expand rapidly. Reclaimed wood, recycled aggregates, and steel will be used at scale in new builds, reducing reliance on virgin materials. Construction products with recycled content will become more normative, driven by regulation. Increased adoption of equipment technology such as automation, AI, and data analytics will transform recycling operations. AI-driven robotic sorters will become more common, capable of recognising and extracting valuable materials from mixed waste with higher precision. Treatment of excess soils will be mandated across the country."
“A move towards stricter regulations and incentives by governments will dictate minimum recycling rates and require deconstruction plans for large developments. Green building codes will evolve to require specific percentages of recycled or reused materials. Tax incentives, carbon credits, and grants for firms that prioritise sustainable materials and recycling processes will propel growth. Landfill bans on certain recyclable construction materials (like untreated wood or concrete) may become more widespread.”
“I just attended a conference on modular construction and prefabricated building construction which will become a driver of less waste and more recyclability. These systems generate far less waste during construction and can be disassembled and reused more efficiently — waste from factory production is easier to control, and components are more likely to be reused or recycled.
FUTURE PREDICTIONS
Other predictions for the future include:
Public infrastructure projects will demand greater recycled content.
Government tenders will prioritize bidders who use recycled materials, follow zero-waste practices, and avoid the landfill.
ESG will influence construction stakeholders to favor companies with strong recycling and waste diversion performance.
Smaller recycling operators will merge or be acquired as the industry scales.
More tech-enabled early adopters will dominate due to efficiency advantages.
“I would also expect to see more standardisation in processes, certifications, and reporting, especially around emissions, diversion rates, and material quality. Continued risks and challenges will continue despite these optimistic predictions, such as high upfront costs of advanced recycling equipment and technologies, a fragmented regulatory patchwork across provinces, and contamination issues in the recycling streams. Skilled labour shortages and lack of training will no doubt present a persistent challenge. The materials processed in C&D recycling must also have an end market that is financially viable and can be profitable for the producer.”
Adrian, you work with operators in this market daily, how do you see the industry landscape evolving into 2026?
“Last year, aggregate demand was down and it's expected it'll continue to be down this year. But looking forward to 2026 and beyond, it's widely believed that aggregate demand will come back and it will continue to grow from there.”
“I think education and transparency is very important. A lot of Canadians have the mentality, ‘not in my back yard’, but growing infrastructure requirements means you need more aggregates.”
“The sustainable and efficient way to source these aggregates is to have production close by the market. Recycled facilities like we deliver at CDE allow for this because they work on a smaller footprint than a new mining site.”
“I would also like to see the permitting process become more streamlined. At the moment, all these soils are being sent to landfill when they can be used in infrastructure projects around the country. At the same time, this is still creating a high demand on primary aggregates, especially in projects where they're not needed.”
Many thanks to our expert contributors, Deanna Woods, Ken Singer and Adrian Convery.
If you have a perspective on the C&D waste recycling sector in your region please get in touch with marketing@cdegroup.com to share your insights.
