TSXV:GDNP.H - Post by User
Post by
Archwayon Sep 01, 2021 3:48pm
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Post# 33795819
Canada's Federal Single Use Plastics Ban
Canada's Federal Single Use Plastics BanAs is often noted on this board, Canada's current government is moving toward a ban on single use plastics. What the proposed ban will mean for a company in GDNP's position is difficult to say. It is possible that the proposed ban will not be helpful or anywhere near as impactful as some believe it will be to GDNP's business. Hopefully it will lend some momentum to the company but we really won't know until we see the specific details of the ban and any other requirements it may include.
Also, Canada will be going to the polls on September 20, 2021. If the Liberals win we know that they will continue toward the proposed ban. If the Conversatives win they may go in a different direction in responding to the issue of plastics. For example, in their platform, they say that the labelling of plastics as "toxic" by the Liberals is "ineffective". However, as I understand it, this labelling is a necessary designation under the Canadian Environmental Protection Act that makes the proposed ban and other measures possible. If this means the Conservatives intend to undue the designation of plastics as a toxic substance, then it may suggest they have no intention of implementing any kind of similar ban. They could introduce other ideas but I think the liklihood of the Conversatives doing anything that works against petroleum producers is unlikely.
All of the above is why Paul Antoniadis' response to questions about the proposed ban is always the same and that is that you don't build a business around a policy. We don't know what that policy will look like, it's always subject to change, and it may never happen at all. I think for those of us invested with GDNP it's somthing to keep in mind over the next few months when we start to see where the current proposal could be heading.