A group of CEOs of multinational companies has published a joint letter ahead of the UN Environment Programme’s (UNEP’s) fifth session of the Intergovernmental Negotiating Committee (INC-5) on plastic pollution, calling for governments to agree on a treaty to end plastic pollution.
The companies belong to the Business Coalition for a Global Plastics Treaty. The CEOs called on policymakers to implement direct regulatory measures that would improve the plastic circular economy.
The joint letter said that a treaty based on voluntary measures would “create further fragmentation in the regulatory landscape for business, leading to increased cost and complexity.” The signatories of the letter seek a treaty that introduces global criteria for the phasing out of “chemicals of concern,” approaches for the circular product design of plastic products, common principles for the effective implementation of Extended Producer Responsibility (EPR) schemes and a mandate for the treaty’s governing body to strengthen the agreement over time.
“We are working to transform our business models to catalyze a circular economy in which plastic never becomes waste or pollution, and the value of products and materials is retained in the economy,” the letter said. “There is already significant alignment on these topics through voluntary industry initiatives […] however, it is clear that voluntary efforts alone are not enough to address plastic pollution at scale.”
The letter was signed by the CEOs of plastics producers such as Borealis AG; packaging producers such as ALPLA Group; plastics converters such as Berry Global Inc.; and major downstream brand owners such as PepsiCo, Mars, Nestle and Danone.
The last round of talks, the fourth session or INC-4, took place in April 2024 at Ottawa. Disagreements over pricing caps on virgin polymers meant that no agreement could be reached.
Following INC-4, participants in the discussion, such as the Ellen MacArthur Foundation, Unilever, Opsomer and the Plastics Europe trade association, called for collaboration and urged delegates to refocus efforts on relevant discussions during intersessional work ahead of INC-5.
INC-5 will be held at Busan, South Korea, between Nov. 25 and Dec. 1, with regional consultations set for Nov. 24.
Regulation has been cited by a number of players across global circularity markets as critical to establishing broader commoditization of sustainable plastic markets, solidifying demand for recycled polymers and facilitating a transition to a circular economy.
Demand for recycled plastics has been clipped across the last 18 months due to severely weak cost-competitiveness against virgin material and broader macroeconomic pressures, which have put cost-cutting at the forefront of consumer attention. Mandated inclusion targets and regulatory intervention are commonly cited as solutions to the issue, allowing for a more consistent consumer base and more consistent procurement from a wider range of downstream buyers.
“All recycled products are seeing efforts to bolster the market, but demand remains weak,” a distributor told S&P Global Commodity Insights. “Prime is very available, quite cheap, and many recycled grades are more expensive […] without the legislation, people don’t use the material.”
European recycled high-density polyethylene pellets have averaged a €578.5 per metric ton premium to virgin material across the fourth quarter of 2024, up 4% on the quarter and down 9% on the year.
Similar calls for increased government intervention in the sector have been made across 2024. The European recycled polymers industry organization, Plastics Recyclers Europe (PRE), called on EU institutions to take action in establishing a circular market for plastic waste, citing ongoing downward pricing trends and weak fundamentals across European markets as concerns. PRE warned in a press release on Oct. 24 that Europe’s recycled plastic markets could face plant shutdowns and potential industry collapse if pressures from weak demand, dwindling investments and competitive imports are not addressed.
Story by Alex Fiedosiuk, Daniel Pelosi and Finlay O’Riordan, S&P Global Commodity Insights
Source: chemweek.com
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