Rift between two blocs continues in Geneva Plastics Treaty negotiations, pg12.

Key Highlights:

• Negotiation Platform: Intergovernmental Negotiating Committee (INC) on Plastic Pollution under UNEP since 2022; treaty to address land and ocean plastic pollution.
• Two Blocs:
  • High Ambition Coalition (HAC): ~80 countries including EU members, led by Norway & Rwanda; supports capping plastic and polymer production.
  • Like Minded Countries (LMC): Iran, Saudi Arabia, Kuwait, Bahrain, China, Cuba; focus on waste management, oppose production caps.
• India’s Position: Expressed solidarity with LMC; advocates waste management, behavioural change, and no cap on primary polymer production.
• Industry Influence: All India Plastic Manufacturers Association submitted concerns against caps, citing unmet material needs in multiple sectors.
• Global Trade Analysis (IEEFA, July): Asia dominates global trade in primary plastic polymers; US largest North American exporter; low African & South American trade volumes.
• US Stance: No support for production cuts despite earlier calls for a “strong treaty.”

Detailed Insights:

• Fundamental Rift: HAC views production reduction as essential to curbing pollution; LMC argues it disrupts trade without significantly cutting plastic use.
• Economic Context: Declining margins and demand in global polymer refining; China operating petrochemical refining at ~50% capacity.
• Negotiation Challenge: Near-unanimous consensus required; no provision for passing proposals by simple majority, prolonging deadlock.
• India’s Rationale: Meeting growing domestic demand across sectors, preventing disruption in manufacturing supply chains, focusing on improving waste infrastructure.
• Policy Implication: Outcome will influence global plastic governance frameworks, trade in primary polymers, and environmental commitments.

Concepts Involved:

• Primary Plastic Polymers: Basic building blocks of plastics such as polyethylene (LDPE, LLDPE, HDPE), polypropylene, styrene derivatives, and PET.
• Waste Management Approach: Strategies to collect, process, recycle, or safely dispose of plastic waste, aiming to minimise environmental leakage without restricting production.