Global plastics treaty negotiations face headwinds as industry weighs risks and opportunities

GLOBAL – The global effort to establish a legally binding treaty on plastic pollution continues to gather momentum, despite limited progress at the second session of the Intergovernmental Negotiating Committee (INC) that concluded this week in Geneva.

For industry stakeholders, the talks underline both the regulatory uncertainty ahead and the growing inevitability of far-reaching change across plastics and packaging value chains.

Closing the meeting, UN Environment Programme (UNEP) Executive Director Inger Andersen acknowledged the challenges facing negotiators but stressed that political appetite for an agreement remains intact.

“We did not get where we wanted, but people want a deal. This work will not stop, because plastic pollution will not stop,” she said.

The INC process, mandated in 2022, aims to deliver a comprehensive international framework addressing plastic pollution across the entire lifecycle, from polymer production and product design to waste management and end-of-life treatment.

More than 175 countries are involved, with negotiations expected to continue through 2025.

In Geneva, discussions centred on binding reduction targets, restrictions on problematic and single-use plastics, design-for-recyclability standards, and the role of circular economy models. However, divergent national positions slowed progress.

Plastic-producing economies cautioned against prescriptive global caps that could disrupt industrial competitiveness, while many developing countries argued that ambitious targets must be matched with predictable financing and technology transfer.

For manufacturers, brand owners and recyclers, these debates are highly consequential. A strong treaty could reshape material choices, accelerate shifts toward lightweighting, reuse and alternative materials, and drive investment in collection and recycling infrastructure.

Conversely, fragmented or weak provisions risk creating uneven regulatory landscapes, complicating cross-border trade and compliance.

Despite the lack of consensus, industry observers note that direction of travel is clear. Evidence of plastic pollution’s environmental and health impacts, from marine litter and microplastics to contamination of water and soil, continues to mount, increasing pressure on governments to act.

Many companies are therefore moving ahead of regulation, expanding recycled content targets, redesigning packaging, and entering partnerships to secure post-consumer plastic feedstock.

Environmental groups have urged negotiators to avoid voluntary approaches, arguing that only binding obligations will deliver meaningful reductions.

This stance has implications for industry, particularly around extended producer responsibility (EPR), reporting requirements, and potential caps on virgin plastic production.

At the same time, the treaty process presents opportunities. Proponents of circular economy solutions see scope for growth in advanced recycling, refill and reuse systems, biodegradable and compostable materials, and digital tools for traceability and compliance.

Companies that invest early in scalable, compliant solutions may gain competitive advantage as regulations tighten.

While Geneva did not deliver immediate breakthroughs, the INC talks reinforced a central message for industry: regulatory change is coming, even if the final shape remains uncertain.

As negotiations progress, companies that engage constructively, stress-test their portfolios, and align strategy with global sustainability trajectories will be better positioned to navigate the transition toward a more circular plastics economy.

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