The recent failure of the U.N. to reach consensus on a global plastics treaty revealed a stark divide: while over 175 nations participated, only a handful—including the United States, Bahrain, China, Cuba, Iran, Kuwait, Saudi Arabia, and Russia—opposed limits on plastic production. This alignment with other petro-states and major virgin plastic producers is unsurprising, but it’s telling that other industrial leaders like Germany and Japan strongly supported production caps.
The U.S. delegation argued that production limits would harm the American economy, a stance that is a holdover from the Biden administration. But this position was heavily influenced by 234 fossil fuel and chemical industry lobbyists, including representatives from Dow, the American Chemistry Council, and ExxonMobil.
With global demand for oil and gas declining, these industries are doubling down on plastics to offset losses. In the U.S., an oversupply of fossil fuels has made virgin resin cheaper than postconsumer recycled (PCR) resin—but this is a short-term distortion, not a long-term trend.
Demand for PCR is rising, driven by:
- Extended Producer Responsibility (EPR) laws in California, Washington, Oregon,
Colorado, and Minnesota. - Recycled content mandates and growing consumer preference for sustainable
packaging. - Global market shifts toward circular economy models.
As the rest of the world moves to curb plastic production, the U.S. risks falling behind. But for recyclers and PCR manufacturers, this is a moment of opportunity.
Why a Global Treaty Benefits U.S. Recyclers
- Market Expansion: A treaty would increase global demand for high-quality recycled
resins, positioning U.S. recyclers as key suppliers. - Infrastructure Investment: EPR laws generate funding for recycling systems, creating
jobs and boosting domestic capacity. - Innovation Leadership: The U.S. can lead in recycling technology, chemical recycling,
and alternative materials. - Regulatory Certainty: Harmonized international standards reduce compliance
complexity and support long-term planning. - Environmental and Economic Sustainability: As landfills overflow, incinerators
pollute, and export markets dry up, recycling offers a scalable, sustainable solution.
The U.S. can either cling to outdated models or lead the global transition. By supporting a plastics treaty, we can unlock new markets, drive innovation, and ensure that recycled plastics are not just viable—but vital—to the future of packaging.