Over 170 member countries of the United Nations Environment Assembly (UNEA-5) endorsed the End Plastic Pollution resolution on 2 March in Nairobi, Kenya, which could boost investment in recycling technologies and bioplastics production.
"This is the most significant environmental multilateral deal since the Paris accord. It is an insurance policy for this generation and future ones, so they may live with plastic and not be doomed by it," UN environment programme (UNEP) executive director Inger Andersen said.
The resolution, endorsed by a total of 175 nations, will tackle pollution throughout the entire lifecycle of plastic, including the production, design and disposal stages. It was created on the back of three draft resolutions from UNEA-5 member countries to establish an Intergovernmental Negotiating Committee (INC).
The objective of the INC is to establish a legally binding instrument which will provide sustainable alternatives across the full lifecycle of plastics, the design for reusable and recyclable products and materials, and foster international collaboration. This will be key in facilitating access to technology, capacity building and scientific and technical cooperation, according to UNEA-5.
Plastic pollution has been top of mind for many petrochemical participants globally, with key participants already launching initiatives to reduce the impact of plastic pollution. Petrochemical producers LyondellBassell Industries, Chevron Phillips Chemical and Indorama have invested $45mn in a circular plastics fund that invests in advanced recycling technologies. Further downstream, global food and beverage firm Pepsico has committed to eliminating virgin plastic chip bags by 2030. Petrochemical producers have also collaborated with final goods manufacturers to reduce plastic pollution, with Saudi petrochemical producer Sabic collaborating with global computer software company Microsoft to create a recycled ocean plastic mouse. More of such international collaborations across different stages in the supply chain can be expected once the agreement is formalized in 2024.
But a legally binding agreement that puts limits on plastic production and design could negatively impact existing petrochemical company business models, and may face backlash from businesses during later stages of the negotiations.
"Let us be clear that the agreement will only truly count if it has clear provisions that are legally binding," Andersen said.
The resolution and eventual binding agreement should also boost demand for bioplastics and feedstock bionaphtha, a by-product of hydrotreated vegetable oil (HVO) production that can be used to feed petrochemical crackers.
Bioplastics can be used to replace virgin fossil-based plastics in broader applications than recycled plastics, including food packaging and medical applications where hygiene concerns are amplified.
Global HVO capacity is set to more than double to 28.5mn t in 2025 from 11.5mn t in 2021, and bionaphtha is increasingly seen as an important co-product rather than a by-product in investment decisions for HVO plants.
Further discussions have been scheduled for the end of the year when the UNEP convenes a forum for INC's stakeholders. The INC plans to facilitate scientifically informed discussions over the next two years to pave the way for a legally binding agreement in 2024.
The UNEP also said it will support voluntary efforts to shift away from single-use plastics ahead of a legally binding agreement, as well as work with governments and businesses to mobilise private finance and remove barriers to investments in research and creating a circular economy.
