This report considers the influence of the political process and interests of private sector on the adoption of extended producer responsibility (EPR)/product stewardship models in environmental policy making. In Ontario producer responsibility for municipal waste management has been resisted for long time. Recycling of packaging waste is financed exclusively by tax through a Blue Box Program experiencing a serious financial crisis. The report describes political interplays associated with the attempt to resolve the Blue Box crisis through a voluntary agreement – Waste Diversion Organisation (WDO) – between provincial government, industry and municipalities. Analysis of the stakeholder positions and political process in regard to product stewardship in Ontario and the WDO resulted in conclusions that environmental policy making in the Province is dominated by the interests of a group that was supposed to be a “responsible entity” under EPR/product stewardship models – the private sector, supported by a conservative pro-business government. In these conditions the political climate hampers more sustainable waste management practices achievable through comprehensive product stewardship/EPR strategies.