New data from WWF and the Ellen MacArthur Foundation has revealed that, rather than being a burden, MSMEs (Micro, Small and Medium-sized Enterprises) from across the globe see the removal of plastic from their operations as an opportunity. The study which surveyed 132 MSMEs provided insights on how business would be affected by a proposed plastics treaty currently under discussion by the UN (United Nations).
The data shows that of the businesses surveyed, almost two thirds (63%) view a proposed plastics treaty as a good thing, with the other 37% remaining neutral. With 90% of businesses worldwide falling into the MSME category and providing an estimated 70% of employment opportunities globally, these companies will play a critical role in the success of any treaty on plastics[i].
Three-quarters of the surveyed MSMEs (75%) were already aware of the proposed treaty prior to being prompted. Of those who viewed its introduction as a positive, many anticipate that the short-term costs incurred from disclosures, changing suppliers and/or changing materials will be outweighed by longer-term benefits, including harmonisation, standardisation and market expansion.
Potential negatives were primarily viewed as impacting the plastics production and conversion sectors, with the research suggesting short-term negative impacts on employment, as demand for these activities decreases due to fees, bans, and phaseouts. However, it argued that opportunities for increased employment in plastic reduction and substitution activities, including reuse and recycling, have the potential to offset these losses due to incentives.
The report explored the following seven global rules under consideration within the plastics treaty which they believe are of relevance to MSMEs:
1. Virgin plastic fees to fund solutions across the plastic lifecycle.
2. Bans on avoidable single-use plastics.
3. Reuse targets for avoidable single use plastics.
4. Phaseout of problematic plastics, polymer applications, and chemicals of concern.
5. Design rules for reuse, repair, durability, and cost-effective recycling of packaging and consumer goods.
6. Targets for collection and recycling rates.
7. Extended Producer Responsibility (EPR).
The researchers found that if implemented “effectively and fairly” these global rules could unlock significant opportunities and benefits across the MSME landscape. For MSMEs to be supported during the introduction of a plastics treaty, the WWF and the Ellen MacArthur Foundation suggest the inclusion of the following policy measures:
1. Differentiated implementation timelines to catalyse innovation and grant MSMEs time to adapt to new regulatory requirements.
2. Knowledge and technology transfer of equipment, materials, and processes to reduce transition barriers.
3. Vocational training and education to support the employment transition away from extraction and production towards circular business models and approaches.
4. Flexible financial instruments for MSMEs to support them to scale solutions, meet treaty demands, access new technology, and enable relevant infrastructure development.
The researchers state: “Through this deliberate approach, policymakers can make sure that ambitious global rules — for example, on restrictions and phaseouts of problematic and avoidable plastic-containing products and packaging, reuse policies, design rules, EPR systems, and collection and recycling targets — help to end plastic pollution and also benefit businesses across the plastics value chain, including MSMEs.”[ii]
A new global treaty on plastics was proposed by the UNEP at UNEA 5 held in Nairobi in March 2022[iii], where the UNEP resolved to create an intergovernmental committee to negotiate a new legally binding treaty on plastic reduction by 2024. However, talks remain ongoing with the latest round (now in its fifth session) scheduled for 25th November to 1st December this year, where it is hoped that the treaty will be finalised[iv]. the new treaty will cover all stages of the plastic lifecycle, from production to waste management, meaning countries who sign up will likely have to introduce new legislation to meet the treaty’s requirements. For example, governments will need to boost recycling rates of plastics as well as introduce targets aimed at cutting plastic production, alongside incentives or even taxes to target high polluters.
[i] Making the global plastics treaty work for MSMEs (ellenmacarthurfoundation.org)
[ii]Ibid
[iv] Intergovernmental Negotiating Committee on Plastic Pollution | UNEP - UN Environment Programme
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
