Material Cost Differentiation Methodology
Consultation: June 25, 2020

Canadian Stewardship Services Alliance (CSSA) will be hosting an information webinar on June 25, 2020 on the Material Cost Differentiation (MCD) Methodology and its results. If you wish to attend and have not yet registered, please do so here.

An in-depth pre-read that describes the development of the MCD Methodology and explains how it works is available hereAn abridged description of the methodology together with its features and benefits is available here.


What is the MCD Methodology?

The MCD Methodology is a new and innovative way to measure th
cost impacts of materials on the recycling system. It will provide a significant input to setting fair and accurate fee rates for packaging and paper recycling programs. A critical input to the Four-Step Fee Methodology, it will allocate the gross cost of the recycling system (the largest component of a program's annual budget) to all designated materials and will affect all stewards. 

It is principle-based and measures cost impacts in a fair and consistent way. The methodology will generate a Material Cost Index (MCI) that assigns a value to each material that expresses its cost impact on recycling system activities relative to all other materials. The lower the MCI value, the lower the impact on recycling system costs.

On June 25, stakeholders will learn more about how the methodology works, its many features and benefits, and for the first time see its results. Which material has a higher cost impact on the recycling system: PET beverage bottles or cartons? Which material has a higher MCI value: colour HDPE bottles or natural colour HDPE - and why would colour make a difference? Which material has a higher MCI value - film or steel?

We look forward to your participation and feedback.