Canadian government proposes three options on how to comply with VOC limits.

The Canadian government has unveiled three options for businesses to comply with the country's VOC (Volatile Organic Compounds) limits for household goods. These regulations, which establish concentration limits in around 130 product categories, were adopted in January 2022 and will become effective in 2024 for most products and in 2025 for disinfectants.

However, since some companies might struggle to meet the more stringent limits they can take advantage of alternative compliance paths offered by the government, which include obtaining a temporary permit, a longer-term permit, or participating in a unit trading program.

Temporary permits allow businesses to apply for a two-year permit if they can provide clear and convincing evidence that they cannot meet the VOC limit requirements for technical or economic reasons. The businesses must also present a plan to ensure compliance once the permit expires. This permit can be renewed for another two years, but the request for renewal must be submitted 90 days prior to expiration.

Long-term permits are available for products that exceed VOC concentration limits but result in lower overall VOC emissions than comparable compliant products. Manufacturers are required to disclose the estimated quantities of the product per year and provide evidence that its use results in lower VOC emissions than a compliant product in the same category. These permits are valid for four years and can be renewed 90 days prior to expiry.

Unit trading allows companies to exceed concentration limits for one product by balancing emissions with other products that have lower VOC amounts, or by purchasing compliance units from other companies. The companies must supply information on the products that exceed the limits and a plan to compensate for excess VOCs. Permit holders are mandated to submit an annual report, no later than March 1st, which should include actual quantities in Canada, compliance units used to offset the excess VOCs, and a confirmation of intent to continue manufacturing or importing the product under the permit. If emissions are not balanced for the calendar year, the permit will be revoked.