Some 160 financial institutions, with $15.5 trillion in collective assets under management, have called for an ambitious international treaty to end plastic pollution, in a statement led by the UN Environment Programme Finance Initiative (UNEP FI).

The Finance Statement on Plastic Pollution saw 160 investors, banks, and insurers from 29 countries show support for what a robust agreement looks like for finance, including disclosure on plastic-related risks.

The fourth round of negotiations on a UN plastics treaty is taking place Apr. 23-29 in Ottawa, Canada, with the Intergovernmental Negotiating Committee (INC) tasked with developing an international legally binding instrument on plastic pollution, including in the marine environment.

The six-point Finance Statement on Plastic Pollution included calls for finance to “catalyse further private investment to end plastic pollution through public-private partnerships, blended finance, and de-risking mechanisms”.

It asked governments to “promote an enabling policy environment for the transition to a sustainable and equitable economy that addresses plastic pollution”.

Environmental market standard-setters including Verra have been intensifying their push to establish an international framework for plastic credits under the UN plastics treaty, even as experts raise concerns over the viability of recycling at scale.

Signatories to the statement included 15 Asian financial institutions based in India, Indonesia, Singapore, Japan, and South Korea. The final round of treaty negotiations will take place in Busan, South Korea before the end of 2024.

Institutions in wealthy countries that are members of the Organisation for Economic Co-operation and Development (OECD) were strongly represented among the participants.

Statement signatories included Woori Financial Group and Shinhan Financial Group from South Korea, AXA Investment Managers from Europe, Fidelity International from the US, Bancolombia from Colombia, and Khumo Capital from South Africa.

The statement was drafted by UNEP FI, Principles for Responsible Investment, Finance for Biodiversity Foundation, Business Coalition for a Global Plastics Treaty, Dutch Association of Investors for Sustainable Development (VBDO), and CDP.

The document said a robust treaty would:

• Set an objective to align financial flows, both public and private.
• Set harmonised targets and binding obligations across the plastics value chain.
• Enable and ensure companies assess and disclose plastic-related risks and opportunities.
• Identify and optimise the co-benefits and synergies between financial flows addressing plastic pollution, climate action, and biodiversity preservation and restoration.

UNEP FI began gathering signatures for the statement in February.

PLASTIC DATA TOOLS

A group of corporations and NGOs separately announced support for corporate accountability tools to tackle plastic pollution on Tuesday.

Consultants EA – Earth Action and Systemiq, non-profit Delterra, and software company SAP said they are partnering to try to enable companies to report on progress against plastic targets, following a meeting in Ottawa.

Their tools include SAP’s Responsible Design and Production tool, Delterra and Systemiq’s Packaging IQ 2.0 platform, and EA – Earth Action’s Plastic Footprint Network.

Earlier this month, a policy officer at Ocean Conservancy said the UN plastics treaty must set targets to reduce plastics production, though the private sector favours recycling.

By Thomas Cox – tom@carbon-pulse.com

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