Update on UN Roadmap to a New Global Plastics Treaty

March 21, 2022

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On the 2nd March 2022, heads of state, environment ministers, and representatives representing 175 countries supported a resolution at United Nations Environment Assembly (UNSEA).UNEA-5() Nairobi, Kenya to negotiate an international legally binding deal End plastic pollutionThe end of 2024 (the UNEA Resolution).[1]The UNEA Resolution End Plastic Pollution: Achieving an Internationally Legally Binding InstrumentThis document is the culmination many years of negotiations, advocacy, and advocacy by governments, international organisations, and the private sectors.[2]It pledges to address the entire lifecycle of plastic, including its design, production, and disposal.[3]Its adoption has been described by a cureFor plastic pollution,[4]And The Paris Accord was the first major multilateral environmental agreement since then. [on Climate Change].[5]As discussed below, the final treaty could have profound repercussions on how and where plastics are used in the world. This could have material consequences for businesses.

I. Background

Over the past 5-10 years, international and national organizations, as well as local and regional governments, have developed a growing number and more effective tools and plans to combat plastic pollution. Many countries have taken action to ban or limit single use plastics at the country level.[6]This issue has also attracted a lot of attention at the multilateral level.

• UN Environments Global Partnership on Marine Litter (2012)[7]
• Resolutions of UN Environment Assembly on Marine Litter and Microplastics (2014)[8]
• G7 Action Plan to Combat Marine Litter (2015)
• G20 Action Plan on Marine Litter (2017),[9]
• Ocean Plastics Charter (2018)[10]
• Amendments to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes, and Their DisposalBasel Convention) (2019),[11]
• G20 Osaka Blue Ocean Vision & Implementation Framework (2019),[12]
• Association of Southeast Asian Nations (ASEAN) Framework of Action on Marine Debris and the Bangkok Declaration on Combating Marine Debris (2019),[13]
• ASEAN Regional Action Plan for Combating Marine Debris In ASEAN Member States (202125).[14]
• Asia-Pacific Economic CooperationAPEC) Roadmap on Marine Debris (2019),[15]
• Caribbean Community (CARICOM) St. Johns Declaration to Address Plastic Pollution in Caribbean Sea (2019),[16]
• Alliance of Small Island StatesAOSISLeaders Declaration (2021),
• The Ministerial Conference on Marine Litter and Plastic Pollution (2021).[17]

Plastics are not currently subject to any one international treaty regime, despite being ubiquitous. Transboundary shipments of plastic waste and plastic scrap were regulated by the 2018 Basel Convention amendments. This created new export and import requirements that will be applicable to many companies, including U.S.-based businesses.[18]This did not cover the majority of plastic products. A proliferation of regional, national, and local initiatives has led to often conflicting and incompatible regulations, which have increased costs for the regulated industry.

A new international initiative was launched to address these issues. Plastics TreatyFocusing on plastics as the main issue and not as an incident to other subjects, has been advocated and supported by many businesses seeking to establish common regulatory standards, predictable national targets, and common metrics to help them make short- and long term investment and operational decisions.[19]

II. II.

The UNEA Resolution is described below.[20]It provides guidance on the key provisions and outlines the procedure for the new treaty.

A. Substantive Roadmap

The UNEA Resolution also contains a number provisions that will help to determine the likely contours for the new Plastics Treaty.

• First, contrary what many people believe, the UNEA Resolution doesn’t just address marine plastics or debris. Other environmentsIncluding land-based sources.
• Second, it aims to not only limit or reduce plastic pollution but also at The long-term elimination and reduction of plastic pollution in marine and other environments.[21]
• Third, it adopts Complete life cyclePlastic, including all aspects of its production and use.[22]
• Fourth, it promotes coordination among international environmental treaties. Stop plastic pollution and its adverse effects on the environment and human health..[23]
• Fifth, it aims to address all aspects Plastics can be produced and used sustainably.This includes improved waste management, resource efficiency, and the adoption Circular economy approaches.[24]
• Sixth, it highlights the importance sustainable design to ensure products and materials are created sustainably Can be reused, recycled, remanufactured, or remanufactured and so retained in the economy for the longest time possible..[25]This provision focuses, in particular on single-use plastics.
• Seventh, it focuses on the need to regulate Microplastics(i.e., tiny plastic pieces that are created over time or are intentionally used in some products such as cosmetics)[26]
• Finally, it envisions a role All stakeholders, even the private sector, in achieving treaty objectives.[27]

B. B.

The UNEA Resolution does not represent the first step in the process of negotiating multilateral environmental treaties. It created the Intergovernmental Negotiating Committee (the Committee) that will begin its work during the second half of 2022, with the aim of completing a draft treaty by the end of 2024.[28]The Committee will work on the draft text and try to resolve major divisions about how ambitious the treaty should become. The UN Environment Programme (UNEP) will be completed by the end of this year.UNEPIn conjunction with the first session, UNEP will convene a stakeholder forum to share best practices and knowledge from different parts of the globe. UNEP will host a diplomatic conference after the Committee has completed the work on the draft text to officially adopt the treaty and open it for signature.[29]

III. Expectations for Global Divergence and Implications For Economy and Business

If adopted, the new Plastics Treaty could have major implications for both the global economy and individual companies. The final Plastics Treaty does not mean that plastics will be banned. The UNEA Resolution acknowledged this fact. The important role plastics play in society.[30]Depending on the provisions of the treaty, it may lead to a sharp uptake in compliance costs, not only for the regulated sector and plastics producers, but also for companies along the value chain, which includes consumer-facing businesses.[31]

The treaty itself is unlikely to contain detailed prescriptions. The UNEA delegates opted for a model of the Plastics Treaty on Climate Change 2015 (the Paris Agreement), which, as a bottom-upTreaty relies on national commitments to achieve the treaty’s objectives. The Paris Agreement allows countries the freedom to set their own targets and use a range of policies. This is also possible with the final Plastics Treaty, which will allow individual States to adopt their own rules, regulations, and policies, according to their national circumstances and abilities. These will be reported on and updated in national action plan.[32]

The final Plastics Treaty will not likely adopt a single approach, but will allow Contracting States to use a variety of approaches, from voluntary to binding rules.[33]Many businesses have established plastics targets through voluntary initiatives like the Global Commitment.[34]The Plastics Pact Network and[35] ReSource: Plastic,[36]The World Economic Forums Global Plastic Action Partnership.[37]Some financial institutions are promoting a circular economy for plastics by adopting responsible investment practices.[38]However, there are many binding rules that can be imposed to implement the treaty. These could include targets to increase waste collection and recycling, caps on plastic production, and commitments not to use single-use plastics.[39]Finally, the treaty could provide a stronger incentive for governments to shift the cost to recycle or waste disposal to the producers or, in certain cases, to the importers. This could also impact long-term investment decisions as well as regulatory compliance for businesses throughout the value chain.

In terms of new regulations to curb plastic pollution, we can expect to see a lot of variation and stringency across jurisdictions.[40]Each state will set the final rules. The challenge for organizations’ management will be to determine the implications for their business models and business models. Some industries and sectors may experience significant changes while the final rules and their implementation at the national level are still being formulated. Due to the short negotiation timeline, it will be crucial that individuals, boards, and managers start tracking developments at all levels and thinking proactively about how they might impact their investment decisions, operations, and compliance.

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[1] U.N. Envt Assemb. Draft Res., U.N. Document. UNEP/EA.5/L.23/Rev.1, End Plastic Pollution: Towards a International Legally Binding Instrument (Mar. 2, 2022) (UNEA Resolution).

[2] The Business Call for a UN Treaty on Plastic Pollution, https://www.plasticpollutiontreaty.org/ (last visited Mar. 20, 2022).

[3] See nations sign up to end the global plague of plastic pollutionUN News (Mar. 2, 2022), https://news.un.org/en/story/2022/03/1113142 (last visited Mar. 20, 2022); Historic Day in the Campaign to Beat Plastic Pollution: Nations Sign a Legally Binding Accord, UN Envt, Press Release (Mar.2, 2022), https://www.unep.org/news-and-stories/press-release/historic-day-campaign-beat-plastic-pollution-nations-commit-develop (last visited Mar. 20, 2022).

[4] See id. (quoting Espen Eide, President UNEA-5 and Minister for Climate and the Environment of Norway).

[5] See id. (quoting Inger Andersen Executive Director UN Environment).

[6] See e.g., Legislation for Plastic Bags in States, Natl Conf. of State Legisl. (Feb. 8, 2021), https://www.ncsl.org/research/environment-and-natural-resources/plastic-bag-legislation.aspx (last visited Mar. 2022; Victoria Masterson Canada Bans Bags and More. This Is What’s Happening Around the World with Single-Use plasticsWorld Econ. Forum (Oct. 26, 2020), https://www.weforum.org/agenda/2020/10/canada-bans-single-use-plastics/ (last visited Mar. 2022) (reviewing the proposed ban in Canada as well as existing rules in Kenya and Zimbabwe, New York, California and Hawaii). See also Kimiko de Freytas-Tamura, Public Shaming and even Prison for Plastic Bag Use in Rwanda, N.Y. Times (Oct. 28, 2017), https://www.nytimes.com/2017/10/28/world/africa/rwanda-plastic-bags-banned.html (last visited Mar. 20, 2022). Similar initiatives exist in the UK. The UK Plastics Pact is a collaboration of businesses from all parts of the plastics value chain. It is coordinated by the Waste and Resources Action Programme.WRAP). See The UK Plastics pact WRAP, https://wrap.org.uk/taking-action/plastic-packaging/the-uk-plastics-pact(Last visited Mar. 20, 2022). The UK will also introduce a world-leading tax on plastic packaging starting 1 April 2022. It is 200 per ton and applies to plastic packaging that does not meet a minimum of 30% recycled content. See Regulations 2021 – The Plastic Packaging Tax (Descriptions for Products), 2021 No. 1417.