A global plastics treaty could reduce mismanaged plastic waste by 90% and save $200 billion in waste management by 2040

Next week, government representatives from around the world will meet in Geneva for the final phase of negotiations for the UN Global Treaty to End Plastic Pollution (INC-5.2). Ahead of this key meeting, a new report warns that an ambitious international agreement could reduce mismanaged plastic waste globally by up to 90%.

A global agreement would bring environmental and economic benefits.

The study, commissioned by the Business Coalition for a Global Plastics Treaty and prepared by the consulting firm Systemiq, concludes that implementing international rules covering the entire plastic lifecycle would have a beneficial impact not only on the environment but would also generate economic benefits.

According to the study, if a binding agreement among all nations is reached, it would:

• Prevent a 68% increase in plastic waste generation by 2040.
• Dramatically reduce the volume of mismanaged plastics by promoting eco-design, reducing unnecessary use, and circular economy models.
• Generate accumulated public savings of more than $200 billion between 2026 and 2040, especially in low- and middle-income countries, where waste management can represent up to 20% of municipal budgets.

“We are at a decisive moment for the planet. A global treaty would save more than $200 billion in waste management, a burden that falls heavily on local governments,” said Luisa Santiago, executive director for Latin America at the Ellen MacArthur Foundation.

Latin America: Opportunities and Challenges

In Latin America and the Caribbean, implementing the treaty will require investments of nearly $50 billion, but the benefits far outweigh these costs. According to the report, countries in the region could save up to $1 billion annually in waste management alone.

Furthermore, the study underscores the need for a just transition, which recognizes the fundamental role of recyclers and vulnerable communities. Santiago emphasized that “Mexico is a natural leader in the region” due to its active role in the process and its adherence to the High Ambition Coalition to End Plastic Pollution.

Private Sector Supports Global Plastics Treaty

Recently, more than 290 global companies, including Coca-Cola, Nestlé, Unilever, PepsiCo, and Walmart, signed an open letter in support of the treaty. In it, they request that the agreement include:

• Elimination of problematic and single-use plastics
• International packaging design standards
• Extended Producer Responsibility (EPR)

According to the signatories, these measures will not only reduce pollution, but also boost innovation, reduce operating costs, and provide regulatory clarity globally.