100% Peak

Peak plastics:

bending the consumption curve

Only bold and sweeping reforms will bend the plastic consumption curve. Achieving a reduction in plastic pollution will require all stakeholders–from the petrochemical companies to the consumers–to control the crisis. A piecemeal approach won’t work.

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The world will continue to drown in plastic waste unless a bold and comprehensive set of policy changes are agreed by the UN. To bring about peak plastic consumption, these policies would need to be at the most ambitious end of the spectrum being debated by UN treaty negotiators, which include governments, the petrochemical and consumer goods industries, and environmental groups. This is according to research by Back to Blue, an initiative of Economist Impact and the Nippon Foundation, which models the impact of a selection of policies being considered by world leaders as they draft a legally binding treaty to stem plastic pollution.

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1

Extraction & conversion

The majority (99%) of plastic is derived from oil. The majority of plastic resin is produced in North America and Western Europe. China produces nearly a third.

2

Manufacturing & production

Plastic converters modify or combine virgin or recycled materials to manufacture plastic products ranging from carrier bags to car interiors, toothbrushes to drainpipes.

3

Use

Retailers and consumers use under half (45%) of all manufactured plastic in packaging with building and construction using around 19%.

4

Disposal & end of life

Less than 10% of plastic waste generated has been recycled; 14% incinerated and 76% disposed of in landfills or released into the environment. Large amounts of plastic waste are exported with the majority being sent to countries with limited waste management capacities.

0M

Tonnes

2000

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2019

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2040

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2060

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156.2million tonnes

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14million tonnes

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Scenario 1:
BANNING SINGLE-USE PLASTIC PRODUCTS

Eliminating low-utility, problematic and avoidable plastic through bans is one approach to help reduce leakage into marine and land environments. Currently, national and subnational product bans focus on carrier bags and food service items. In this scenario, we test if, and at what rates, bans on single-use plastic products in the G20 countries can bend the consumption curve to achieve peak plastic.

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Scenario 2:
Mandatory Extended Producer Responsibility Schemes

Extended producer responsibility schemes enable producers to contribute to the end-of-life costs of products they place on the market. In this scenario, we test the potential of applying mandatory extended producer responsibility schemes to achieve a decline in plastic consumption. This scenario uses the price effect to understand the impact on demand.

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Scenario 3:
Producer tax on virgin resin

Plastic products are widely used because they are available at affordable prices. However, the current price of virgin plastic resin used in packaging and other products only incorporates the price of production and not the social and environmental externalities of producing it.

The third scenario we examine seeks to change that by imposing a tax on the production of virgin resin, to be levied on its producers and collected by governments. Our assumption is that a tax that brings the price of plastic production to a level that reflects its true total cost should bring a decline in consumption. This is arguably the most contentious of the main policy measures the treaty negotiators are likely to consider. Virgin polymer producers have been vocal opponents of a plastic tax where they have been proposed in the past.

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We have examined the potential impact of the three policy measures separately, but the future plastics treaty will ideally call for the implementation of multiple measures.

In our analysis, combining a ban on single-use plastic products with an EPR mandate and a production tax will certainly do more to flatten the consumption growth curve in the G20 countries than any of these measures in isolation.

But the impact of this integrated approach is disappointingly limited: 2050 consumption of 325mt is still 1.25 times higher than in 2019.

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1.73 times the 2019 consumption levels if no policy interventions are implemented

1.66 times the 2019 consumption levels if only an EPR scheme is implemented

1.57 times the 2019 consumption levels with a tax on plastic production

1.48 times the 2019 consumption levels under the ban of SUPPs

1.25 times when all three policy measures are implemented. Lower than the baseline, but still rising.

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Select Country

In March 2022, the United Nations Environment Assembly in Nairobi adopted resolution 5/14 “End plastic pollution: towards an internationally legally binding instrument.” This resolution endorses the creation of an internationally legally binding agreement by 2024 and focuses on the complete life cycle of plastic, including design, production and disposal. The treaty negotiations began in November 2022 and are expected to stage a debate on the range of policy options that can be adopted to address plastic pollution.

In tandem with the ongoing treaty negotiations, the ‘Peak Plastics’ workstream under the Back to Blue initiative, has been developing an evidence-based approach to form an understanding of the extent to which selected policy measures can bend the plastic consumption curve that will help to reduce plastic pollution.

We adopt a scenario analysis approach testing the effectiveness of three possible policy options to prevent future plastic pollution The selection of the three scenarios under consideration reflects the lifecycle approach to tackling the plastic crisis. The key underlying assumption in all these scenarios is that compliance with these policies is mandatory for all industry participants. The countries in scope are the 19 countries of the G20. This selection was made as these 19 countries account for almost 78% of global GDP.

For the full technical methodology, please download the methodology note.

You can change scenario options in order to see how the peak consumption changes accordingly.

Scenario 1: Ban rate

Minimum

Intermediate

Maximum

Scenario 2: Price change due to EPR

Minimum

Intermediate

Maximum

Scenario 3: Tax rate

Minimum

Intermediate

Maximum

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