NEWS

• UN-Led Initiative: Since 2022, the UN Environment Programme has been negotiating a legally binding treaty to combat plastic pollution on land and oceans.
• Negotiation Platform: The Intergovernmental Negotiating Committee (INC) has held four sessions in Geneva without consensus.

HIGHLIGHTS

The Two Main Blocs

1. High Ambition Coalition (HAC)
   • Led by Norway and Rwanda; ~80 countries including the EU.
   • Advocates production cuts/caps on plastics and polymers to curb pollution.
2. Like Minded Countries (LMC)
   • Includes Iran, Saudi Arabia, Kuwait, Bahrain, China, Cuba; supported by India.
   • Focuses on waste management rather than production cuts, citing trade disruption risks.

India’s Position

• Expressed solidarity with LMC during recent Geneva talks.
• Industry lobbying: All India Plastic Manufacturers Association opposes polymer production caps, arguing they harm economic needs and cannot be replaced by other materials in sufficient quantities.
• Advocates investment in waste management systems and behavioural change programmes.

Industry & Trade Dynamics

• Shift in Manufacturing: Plastic and polymer production has moved from Europe to South & Southeast Asia.
• Market Data (IEEFA, July):
  • Asia dominates global polymer trade (ethylene, propylene, styrene, and derivatives).
  • US: Largest North American exporter; opposes production caps despite supporting a “strong treaty.”
  • Europe: Mixed role as importer/exporter; Africa & South America have negligible trade volumes.

Underlying Conflict

• HAC View: Without limiting plastic production, pollution control efforts will fail.
• LMC View: Waste management and recycling are sufficient; production cuts could hurt trade without significant benefits.

Economic Pressures

• Observers note declining demand and reduced profit margins in global petrochemical refining.
• Example: China operating at only 50% refining capacity.