In the brief history of plastic, humans have become addicted to its convenience.
Plastic waste tripled worldwide from 1970 to 2000, and over half of all plastics have been produced since 2000. Plastic production exceeded 390 million tons only in 2021. This is connected to fossil fuels, as 98% of single-use plastics are made from them. The seven largest plastic-producing companies in the world are fossil fuel companies. With the switch to solar and wind-cutting power and transport fossil fuel needs, many in those industries are now eyeing plastics as a financial lifeline. Plastic production accounts for ≃12% of global oil consumption, which is expected to increase with demand for plastic.
Naphtha is derived from refining crude oil, and ethane results from drilling for oil and gas. They are almost entirely processed in large-scale petrochemical facilities into plastic production feedstock, which is resource-needing, emission-intensive, and environmentally damaging. Increased production of fossil fuel-based new plastics, driven by the oil and gas industry, has opened the floodgates for plastic to enter our environment like never before. This material will last for thousands of years and poison the entire ecosystem.
If the plastic crisis continues unchecked, it will exacerbate the climate crisis. According to the Centre for International Environmental Law (CIEL) in their 2019 Plastic and Climate report, cumulative greenhouse gas emissions from plastic could exceed 56 gigatons by 2050, accounting for 10-13% of the remaining carbon budget. Demand for petrochemical products provides as much as 45% of oil and gas extraction growth globally between 2018 and 2040 because petrochemicals are prevalent in many everyday consumer plastic products. This outlook is matched by analytics firm Carbon Tracker, with a report estimating the industry grows annually by 3–4%. There is an urgent need to address these companies' behaviors and to decide how we want to behave from now on.
Accountability and Transparency
The petrochemical industry has become the mainstay of economic growth, as far as the topmost industries in the world are concerned. Six out of ten industries are based on oil and petroleum. But it has grave environmental problems. Petrochemical wastewater can generate some organic contaminations with poor biodegradability, such as toluene and xylene, and toxic materials like phenols and volatile organic compounds. These contaminants will continue to harm ecosystems and human health long term; therefore, more severe environmental supervision is required. The most noticeable outcome of this industry is the generation of plastic waste. Without scalable solutions for recycling or reuse, plastics often find their way to landfills or rivers or are burned openly. Open burning is common in many countries — the top ones including Germany, Sweden, and Denmark — releasing persistent toxic chemicals. At the same time, incineration often generates dioxins, heavy metals, and significant carbon emissions, further worsening environmental harm.
Producer Responsibility
The petrochemical industry is the primary plastics manufacturer. It is estimated that 95% of plastics are derived from it, making this industry responsible for helping address plastic waste. EPR systems have been in development since the 1970s but have picked up the most tempo in the last decade as a means of transferring responsibility for the costs of waste management-collection, sorting, and recycling away from public budgets onto the corporate sector. By forcing industries, such as those in the petrochemical sector, to invest in waste management, EPR systems reduce the burden on governments, particularly in developing countries, which have fiscal constraints to establishing proper infrastructure for waste management. In development, such infrastructure is also a collaborative responsibility between industry, government, and all other stakeholders. EPR systems, designed from the outset as inclusive governance models, can engage the petrochemical industry in directly reducing the environmental impact of the plastics they make towards a more circular waste management regime.
Promoting Green Transitions to a Circular Economy
Transitioning to a circular economy is a crucial strategy to address the plastic crisis by enhancing resource efficiency, recycling, and sustainable material use. Closed-loop systems prioritize recycling and reuse and provide scalable solutions to replace the traditional linear "take-make-dispose" model. Studies have shown that a circular economy approach can reduce the demand for virgin plastic production and mitigate its environmental footprint. This framework emphasizes the design of products with their end-of-life in mind, ensuring that plastics are durable, repairable, and recyclable. For example, the lifecycle approach promotes modular design and material recovery, reducing waste and greater resource efficiency.
The chemical industry can facilitate the transition toward a circular economy by further developing biodegradable plastics and their alternatives manufactured from renewable feedstocks. Research has pointed out that bio-based polymers have substantial potential for reducing greenhouse gas emissions compared to plastics produced using fossil fuels. These innovations and improved recycling technologies are key to establishing a sustainable plastics economy.
In January 2023, the European Commission adopted the Transition Pathway for the Chemical Industry, which outlines steps toward green and digital transition while increasing resilience. Co-developed with EU countries, industry stakeholders, and NGOs, it aligns with the EU industrial strategy. As the fourth-largest industry in the EU and one of the main CO2-emitting sectors, the chemical sector will be a critical part of this transition process, with 95% of the manufactured goods and value chains depending on it.
Accompanying informal waste workers
Informal waste workers play an essential role in the recycling chains of many low-income countries, while their work often remains unrecognized, legally unprotected, and underpaid. CE has the potential to foster formalization in waste management practices that will ensure such informal workers fall within the formal systems, with full labor rights and safety standards. Including such workers within the circular economy improves livelihoods and improves recycling outcomes.
Prohibition on Hazardous Waste Export
The circular economy principles support the ban on hazardous plastic waste exports to countries with poor waste management systems. Exporting plastic waste from high-income to low-income countries amplifies environmental and social injustices and can only be avoided by robust governance.
Enhancing Social Equity
Circular economy solutions should also ensure that marginalized communities benefit from the transition to a circular economy—these range from community-based initiatives in recycling to education and raising awareness on sustainable waste management. The involvement of local communities at decision-making levels assures that such initiatives are socially inclusive and, hence, effective.
Enhancing Global Collaboration and Trade Regulations
Circular economy principles can also harmonize international trade policies, ensuring that plastic materials and products follow global standards for recyclability and sustainability. The challenge here is the lack of uniformity in international regulations, which has historically led to inefficient trade in plastic waste. Policies standardizing the minimum recycled content in traded goods encourage companies to incorporate more sustainable materials, creating a level playing field globally.
International trade agreements could facilitate the movement of recyclable plastics and impose higher environmental standards for plastic imports and exports. By aligning global trade policies with circularity goals, we can reduce the consequent burden of plastic waste on developing countries and not leave them solely to bear the costs related to managing a global plastic waste problem. Plastic waste management needs a unified global approach; hence, there is a need for international agreements on support for strict standards in the production of plastics and its waste management.
To align global trade policies with circularity, several actionable strategies can be adopted:
Trade Incentives for Sustainable Practices
Governments and international bodies can incentivize companies to adopt sustainable practices by offering tax breaks or subsidies to businesses that use recycled plastic materials or meet specific environmental performance standards. The OECD has emphasized the need for policy reforms that support circular economy practices, including tax incentives for companies that incorporate recycled content in their products.
At the same time, penalties can be introduced for companies that continue to rely heavily on virgin plastics, particularly those derived from fossil fuels. The Global Environment Facility advocates for a pricing mechanism that could internalize the environmental costs of plastic production, incentivizing industries to shift toward circular models.
Standardizing CE Metrics in Trade Agreements
International trade agreements should use standard metrics on the recyclability of plastic, durability, and material recovery rate. Standardized tracking systems ensure transparency and consistency across borders, ensuring that traded products meet minimum circularity standards. The World Economic Forum advocates for such metrics as part of its Global Plastic Action Partnership, which calls for global coordination on plastic recycling and reducing plastic waste.
Investing in Infrastructure and Technology Transfer
Most developing countries lack resource-efficient infrastructure for managing plastic waste. One of the most important strategies for advancing circularity globally is, therefore, investment in technology transfer programs that provide developing nations with tools and knowledge to implement models of the circular economy. Global collaborations between governments, industries, and international organizations can facilitate the transfer of advanced recycling technologies and create infrastructure for managing plastic waste in low-income regions.
Intergovernmental Negotiating Committee (INC) Possibilities
The INC on Plastic Pollution provides the world's forum for addressing the crisis by harmonizing international cooperation, setting legally binding agreements, and regulating measures to stem plastic pollution. Coordinated global efforts are necessary for waste reduction, control of production, and the implementation of extended producer responsibility (EPR) systems. EPR policies that transfer waste management's financial and logistical burdens from governments to producers are practical tools for encouraging sustainable practices with minimal environmental harm.
The INC can also enhance transparency by standardizing metrics for tracking plastic production, usage, and waste. Establishing global benchmarks and reporting systems ensures national consistency and accountability. Moreover, international agreements negotiated through the INC could incentivize industries to practice circular economy principles, such as recovering materials for recycling and developing alternatives to fossil fuel-based plastics. The INC can drive a systemic transition to sustainable plastics by aligning these incentives with regulatory frameworks.
A Final Thought
The fact that plastics are still so deeply entangled with global energy and climate systems raises one fundamental question: how can industries, governments, and individuals pivot toward less dependence while pursuing equity and sustainability?