OPIS Blog

Is Plastic Facing a Production Cut? Examining the Global Treaty Talks

Plastic. It’s ubiquitous in our lives, from food packaging to medical equipment. However, its convenience comes at an environmental cost: plastic pollution is threatening our oceans and ecosystems. This month, representatives from nearly 200 countries convene in Ottawa, Canada, for a critical moment – negotiations on a global treaty aimed at curbing plastic pollution by the end of 2024. One of the most contentious issues on the table? Plastic production cuts. Let’s explore the key points of this debate.

The Plastic Pollution Challenge

A 2022 report by the Organization for Economic Co-operation and Development (OECD) revealed a concerning trend: plastic waste volume has more than doubled since 2000, with only 9% being recycled. The situation is projected to worsen, with plastic waste expected to reach a staggering 1 billion metric tons by 2060. Our oceans are particularly impacted, accumulating millions of tons of plastic annually. Microplastics, tiny plastic fragments, have been detected everywhere from the deepest trenches to human bodies, raising concerns about potential health risks.

The Push for Production Cuts

Environmental groups and a growing number of governments advocate for significant reductions in plastic production. They argue that this is essential to stem the tide of plastic waste overflowing landfills and polluting our natural world. A recent Greenpeace survey supports this view, with 82% of respondents worldwide backing production cuts as a means to tackle plastic pollution.

Industry Concerns

The plastics industry is strongly opposed to production cuts. They argue that such measures would stifle innovation in developing new, more sustainable plastics. Additionally, they raise concerns about the potential impact on developing nations that rely heavily on plastic packaging for essential goods.

The Plastics Industry Association, a Washington-based group representing the US plastics supply chain, issued a statement advocating for a “circular economy” where even controlled plastic waste is valued for its potential uses. They believe a focus on circularity would be more successful than production limitations.

Chemical Market Analytics by OPIS echoed this sentiment, highlighting a recent letter from the American Chemistry Council to President Biden outlining the need for a successful global plastics agreement that prioritizes circularity while acknowledging the benefits of plastics in achieving a lower-carbon future.

Potential Consequences of Production Cuts

Industry representatives warn that drastic production cuts could have unintended consequences. Nick Vafiadis, vice president of global plastics, at Chemical Market Analytics, expressed concern that such cuts would disproportionately impact developing nations struggling to provide adequate quantities of safe food, water, and critical medical supplies, as plastic packaging offers a cost-effective way to reduce spoilage.

“Draconian cuts to plastic production would have significant unintended adverse consequences to people all over the world. The impact would be most harsh on developing nations struggling to provide adequate quantities of safe food, water, and critical medical supplies to their population as plastic packaging provides a low cost and highly effective method of reducing food spoilage. Those least able to afford the increased costs of essential products produced with alternative materials would suffer most.”

However, Vafiadis also acknowledged positive developments within the industry. Plastics production in Canada is being adjusted to minimize environmental impact, and Dow’s recent announcement of a net-zero carbon emission ethylene and polyethylene production facility in Canada is a promising step.

Finding Common Ground

The debate over production cuts is likely to be heated, but there’s a growing recognition of the need for collaboration. A successful global treaty will likely require a multi-pronged approach:

  • Production Reductions: The extent of production cuts, if any, could be a major point of negotiation. Finding a compromise that addresses environmental concerns while minimizing economic disruption will be crucial.
  • Investing in Recycling: Building robust recycling infrastructure and technologies is essential to creating a circular economy for plastics.
  • Product Design Revolution: Encouraging the design of easily recyclable or biodegradable plastics can significantly reduce plastic waste.

A Turning Point for Plastic?

The upcoming negotiations in Ottawa represent a critical juncture. The outcome will determine the future of plastics. Can the industry adapt and embrace sustainable practices? Can a global agreement be reached that protects the environment without crippling essential industries? The next few months will be telling. One thing is certain: the way we produce, use, and dispose of plastics is on the cusp of a major transformation.

Tags: Petrochemicals