Supply Chains at a Crossroads as Plastic Treaty Talks Stall

The international community's attempt – and subsequent failure – to forge a comprehensive global plastics treaty presents complex challenges for supply chain leaders worldwide.

With the recent INC-5 Summit in Busan, South Korea, concluding without a definitive agreement, intricate tensions between environmental imperatives and industrial interests have once again come to the fore. 

The geopolitical landscape of plastic production

The INC-5 Summit, which involved representatives from 200 nations, ended on Sunday without a treaty amid fears that any such agreement would be hijacked by the globe’s leading oil-producing countries. 

More than 100 countries, led by Panama, had advocated for global targets to reduce plastic production to sustainable levels.

However, it's understood that Saudi Arabia coordinated a push from oil-rich and plastic-producing countries to block proposals that could potentially disrupt their economic models.

Ecuadorian diplomat Luis Vayas, who chaired the negotiations, captured their complexity: "While it is encouraging that portions of the text have been agreed upon, we must also recognise that a few critical issues still prevent us from reaching a comprehensive agreement."

Nations divided

Failure to reach an agreement reflects a profound divide between nations committed to radical environmental action and those with economies deeply entrenched in fossil fuel and plastic production.

A new summit – satirically dubbed INC 5.2 – will convene next year, building on a draft text that has been developing during INC-5.

“In March 2022, 175 nations agreed to make the first legally binding treaty on plastics pollution, including in the oceans, by the end of 2024," explains Adam Elman, Sustainability Director at Google.

"The world produces more than 400 million tons of new plastic every year, while production could climb about 70% by 2040 without policy changes.

“However, countries remained far apart on the basic scope of a treaty and could agree only to postpone key decisions and resume talks, dubbed INC 5.2, to a later date.”

Business perspectives and strategic implications

The Business Coalition for a Global Plastics Treaty, comprising more than 275 members including industry giants like Unilever, Coca-Cola and SAP, has been vocal about the urgent need for action.

Following their collapse, the coalition issued a statement highlighting the critical nature of the talks: "We are encouraged by the increased alignment among more than 100 countries on critical elements such as global phase-outs and sustainable levels of plastic production.

“Never before have so many countries clearly articulated support for these obligations.”

However, the failure to reach a comprehensive agreement was also met with frustration. The coalition said such an outcome "further delays critical action to end plastic pollution" and "fails to deliver the certainty that business needs to mobilise investment and scale solutions".

Challenges and criticisms

The summit's draft text faced severe criticism, particularly from Global South representatives.

Arpita Bhagat, Plastics Lead at GAIA Asia Pacific, was unequivocal in her condemnation of Luis, stating: "The Chair's latest text is unacceptable to the majority of Global South countries and the billions of people they represent: people who are fighting for their lives for a strong treaty."

Dr. Sam Adu-Kumi, negotiator for Ghana, emphasises the global stakes: "The whole world is looking up to us – they are expecting something better that will protect the environment, human health, our brothers and sisters and our young populations. So, we are not here to accept anything short of an ambitious treaty."

Despite the aforementioned challenges, some industry leaders remain optimistic.

Anke Boykin, Senior Director Global Environmental Policy at PepsiCo, offers a more positive perspective: "Progress has been made. Not only in the form of a significantly-evolved text but also the debate itself that has reached a new level of depth and nuance. The collective understanding of key issues and needed actions continues to grow.

"There's more to do. The draft text clearly requires more debate and crucial concepts like Extended Producer Responsibility (EPR) need clearer definitions and globally-agreed principles to address vastly varying interpretations and accelerate EPR implementation."

As the international community prepares for the next round of negotiations, Anke's final assessment rings with cautious hope: "The momentum is strong. A vast majority of countries support ambitious global rules to address plastic pollution. The political will to take action exists."

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