Lifecycle greenhouse gas emissions from plastics will more than double by 2060 under a business-as-usual (BAU) scenario, with fossil fuel-based production continuing to dominate, according to a statement by 70 financial institutions calling on petrochemical companies to transition to more sustainable alternatives.
Some 70 financial institutions with combined assets under management of $6.8 trillion are calling on petrochemical companies to transition to safer and environmentally sound practices by reducing fossil fuel dependency and eliminating hazardous chemicals from plastics production.
The call, made in a collective statement organised by think-tank Planet Tracker, warns that plastics production will triple by 2060 under a BAU scenario, with lifecycle emissions from the industry accounting for as much as 4.5% of global emissions by that date.
The plastics industry has welcomed the inclusion of waste incineration in the EU Emissions Trading System (EU ETS) from 2028, seeing it as further impetus to boost recycling and cut emissions, though incinerators worry they will bear the brunt of the new carbon costs.
However, under a BAU scenario, in 2060, recycled plastics will account for just 12% of total production and petrochemicals will become the main driver of growth in oil demand, Planet Tracker forecasts.
Today, as much as 91% of plastic globally is not recycled, with the illusion of recyclability shifting focus away from the urgent need to reduce production and adopt alternative materials, according to Planet Tracker.
The group of 70 financial institutions and their representatives are calling on petrochemical companies producing plastic polymers to:
- Disclose and define strategies: Transparently disclose plastic impacts, establish clear strategies, and set targets for transitioning to sustainable plastic production.
- Address toxic polymers and chemicals: Commit to eliminating hazardous chemicals in their products and publicly report progress.
- Develop sustainable infrastructure: Invest in technology and infrastructure to support sustainable feedstocks.
- Establish governance: Ensure dedicated governance and accountability for sustainability commitments at the Board level, linking management compensation to circularity goals.
- Support international agreements: Advocate for a robust, legally binding international treaty to end plastic pollution, refraining from lobbying against ambitious measures.
Among those institutions already committed are Legal & General Investment Management, Pictet Group, Nordea Asset Management, Achmea Investment Management, Robeco, MN, Abrdn, Rockefeller Asset Management, Rathbones Group Plc, and Storebrand Asset Management.
The statement says that of the 16,000 chemicals present in plastics, only 5,800 have been tested on their toxicity, with over 4,000 being identified as toxic.
There is also growing scientific evidence of the detrimental impacts of hazardous chemicals on human and ecosystem health, with human health costs in the US alone in 2015 resulting from exposure to just three chemicals commonly found in plastic estimated at some $675 billion, said the statement.
Health impacts associated with chemicals commonly found in plastics include associations with diabetes, obesity, fertility issues, and various cancers.
ENVIRONMENTAL IMPACTS
Planet Tracker also anticipates plastics to exert an increasingly detrimental environmental impact, with plastic leakage to the terrestrial environment forecast to double under BAU and build-up of plastics in aquatic environments forecast to more than triple, with widespread harm to biodiversity.
Plastics leaking into the environment also degrade into micro- and nano-plastics with potential to harm human health, while leaching an array of hazardous chemicals, said the think-tank.
The collective urges petrochemical companies to reduce dependence on fossil fuels and eliminate hazardous chemicals from their products in order to create long-term value for their company, business resilience, and sustainability for the planet.
GLOBAL PLASTICS TREATY
The latest round of negotiations on the UN plastic treaty wrapped up at the end of April with shy steps forward on a draft text, due to be finalised by the end of the year, though observers levelled criticism over the lack of progress on production cuts and funding mechanisms.
The fourth Intergovernmental Negotiating Committee (INC-4) meeting in Ottawa, Canada, concluded with countries weighing the proposal of a target for 40% reduction for plastic production by 2040 submitted by Rwanda and Peru, even as a final agreement was not reached.
Countries agreed on a series of expert meetings aimed at catalysing convergence on key issues in the lead up to the final round of talks (INC-5), scheduled to be held over Nov. 25-Dec. 1 in Busan, South Korea.
The Ottawa talks, which took place over Apr. 23-30, brought together more than 2,500 delegates representing 170 countries and over 480 observer organisations, including non-governmental organisations, intergovernmental organisations, and UN entities.
Several environmental organisations, such as Friends of the Earth International (FOEI) and Greenpeace, pointed to a lack of ambition, with some arguing that parties bowed down to the plastic and fossil fuel industries.
The final text is set to have large implications for how the world will deal with the plastic pollution crisis and its impact on nature and global biodiversity, as well as for the early plastic credit market.
Negotiations in Ottawa saw the participation of major players in the emerging plastic credit market, with credit standard Verra attending as an accredited UN observer.
Verra is advocating for plastic credits to be included in the treaty as a key financing mechanism to help bridge the funding gap on waste collection and management, slated to reach an estimated $40 bln by 2040.
By Bryony Collins – bryony@carbon-pulse.com
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