Global Plastics Treaty 2024: Key Takeaways for Businesses

As global environmental concerns intensify, plastic pollution has become a focal point for international attention. In March 2022 at the fifth session of the UN Environmental Assembly, 175 nations passed Resolution 5/14 to develop an international legally binding instrument on plastic pollution, including in the marine environment. This resolution requested the Executive Director of the UN Environment Programme (UNEP) to convene an Intergovernmental Negotiating Committee (INC) to develop an instrument which would “be based on a comprehensive approach that addresses the full cycle of plastic, including its production, design, and disposal.” The goal is to complete the negotiations by the end of this year. The INC has held four sessions. The hope is that the treaty will be agreed in the fifth session on November 25—December 1 in Busan, Republic of Korea. 

This article explores the key aspects of the 2024 Global Plastics Treaty, analyses its impact on businesses, and examines opportunities for sustainable packaging solutions that comply with the treaty's directives.

Table of contents

• Overview of the Global Plastics Treaty
• Key Takeaways for Businesses
• Leading Solutions in Sustainable Packaging
• Next Step

Overview of the Global Plastics Treaty
The Global Plastics Treaty is a landmark international agreement aimed at reducing plastic pollution and promoting a circular economy. The journey to this treaty has went through several key session rounds:

1. The first session for the Global Plastics Treaty took place on 28 November 2022 in Punta del Este, Uruguay. Here, nations agreed to create a legally binding treaty.
2. The second session was held on 29 May 2023 in Paris, France. Discussions centred on the nature and key implementation points of the Global Plastics Treaty, based on the 'Zero Draft' to formulate the first draft of the treaty.
3. The third session occurred on 13 November 2023 in Nairobi, Kenya. While member states presented draft contents, divergent opinions prevented the compilation of the first draft of the Global Plastics Treaty. Notably, Southeast Asian governments supported including 'reduction of plastic manufacturing' in the treaty content. Greenpeace advocated for the Global Plastics Treaty to target a 75% reduction in plastic production by 2040.
4. The fourth session, ending in April 2024, saw further advancements but did not finalise the draft. Notably, Peru and Rwanda proposed a 40% reduction in primary plastic polymers by 2040.
5. And the fifth session will be on November 25—December 1 in Busan, Republic of Korea, which is also the final round. Before the last round of negotiations begins, let's take a look at the key points of this treaty. The treaty's primary objectives include:

• Reducing single-use plastic consumption by 50% by 2030.
• Increasing plastic recycling rates to achieve 70% recyclable, reusable, or compostable plastic packaging.
• Establishing a global tracking system for plastic waste.
• Promoting research into plastic alternatives.
• Strengthening international cooperation to tackle plastic pollution collectively.

The treaty represents a significant step forward in global efforts to combat plastic pollution, although the specific targets and mechanisms continue to be subjects of ongoing international dialogue and negotiation.

Key Takeaways for Businesses

Businesses, particularly in the packaging and manufacturing sectors, must start preparing for the potential impact of the Global Plastics Treaty. Here are some critical considerations:

• Shift Away from Single-Use Plastics: The treaty emphasizes reducing reliance on single-use plastics, urging packaging companies to explore reusable, recyclable, or compostable alternatives. Companies must explore sustainable packaging solutions that meet consumer demand for eco-friendly products.
• Adoption of Circular Economy Principles: Packaging design should prioritize recyclability and integration into closed-loop systems. This encourages innovation in using eco-friendly materials such as plant-based or biodegradable alternatives.
• Opportunities in Sustainable Materials: The treaty highlights the need for investment in sustainable packaging solutions. Companies can capitalize on this by developing bio-based or renewable materials that cater to the growing market for environmentally friendly products.
• Extended Producer Responsibility (EPR): Businesses are increasingly accountable for the entire lifecycle of their packaging. This includes implementing strategies for waste reduction and enhancing recycling efforts in partnership with government and industry stakeholders.
• Market Leadership in Sustainability: Embracing the changes prompted by the Global Plastics Treaty offers businesses the opportunity to differentiate themselves as leaders in sustainability, building trust and loyalty with eco-conscious consumers.

Leading Solutions in Sustainable Packaging

The Global Plastics Treaty presents a pivotal moment for businesses to transition towards sustainable packaging solutions. Among the most promising alternatives are plant fibre and kraft paper products, which offer both environmental benefits and compliance with emerging regulations. Here's why these materials are set to revolutionise the packaging industry:

Plant Fibre 

• Biodegradability: Plant fibre packaging, derived from bagasse, wheat straw, or bamboo, naturally decomposes, leaving no harmful residues.
• Versatility: Suitable for a wide range of applications, from food containers to protective packaging, meeting diverse industry needs.
• Natural Aesthetic: The earthy look of kraft paper appeals to consumers seeking authentic, eco-friendly products.
• Customisability: Plant fibre materials can be moulded into various shapes and sizes, catering to specific product requirements.
• Positive Brand Image: Using plant fibre packaging demonstrates a commitment to sustainability, enhancing brand reputation among environmentally conscious consumers.

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Kraft Paper

• Recyclability: Kraft paper is highly recyclable, fitting perfectly into circular economy models.
• Printability: Excellent surface for high-quality printing, allowing for attractive branding and product information display.
• Versatility: From bags to wrapping paper, kraft paper can be used in numerous packaging applications.
• Cost-effectiveness: Compared to other eco-friendly materials, kraft paper offers a more budget-friendly option, making it both environmentally sustainable and economical.
• Scalability: Kraft paper production can be easily scaled to meet increasing demand for sustainable packaging.

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Enhancing Brand Image and Customer Loyalty
Adopting plant fibre and kraft paper packaging solutions offers a strategic advantage in today's environmentally conscious market. While initial costs may be slightly higher, the long-term benefits — including avoiding plastic taxes, meeting regulatory requirements, and improving brand image — make this a wise investment. As production scales up, these sustainable options are becoming increasingly cost-competitive with traditional plastics. 
Moreover, the shift to eco-friendly packaging significantly boosts your brand's image, aligning with growing consumer environmental concerns. The visual appeal of natural materials enhances product perception, potentially justifying premium pricing. 
By demonstrating corporate responsibility, these sustainable choices foster trust and loyalty among environmentally conscious consumers, allowing your brand to stand out in a crowded market and attract customers who prioritize sustainability in their purchasing decisions, and creating long-term business value.

Next Step
By embracing sustainable packaging solutions, companies can not only comply with the Global Plastics Treaty but also position themselves as responsible, forward-thinking brands. This shift in packaging strategy goes beyond mere regulatory compliance—it's an opportunity to redefine your brand identity, connect with conscious consumers, and lead in the sustainable business landscape.

We invite you to explore our range of innovative packaging solutions. Our products not only meet the highest standards of sustainability but also offer the quality, functionality, and aesthetic appeal that modern businesses demand. By choosing our eco-friendly packaging options, you're not just wrapping your products—you're wrapping your brand in a message of responsibility and care for the environment. Contact us to discover how our packaging solutions can elevate your brand image and help your business thrive in an increasingly eco-conscious marketplace.