In April 2024, one hundred and sixty financial institutions and two industry stakeholders from around the world called on governments to negotiate an ambitious treaty to end plastic pollution ahead of international negotiations at the fourth meeting of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-4).
Representing 15.5 USD trillion in combined assets, signatories of the Finance Statement on Plastic Pollution come from all regions, including a strong voice from OECD countries, and notably 15 signatures from Asian financial institutions, including from India, Indonesia, Singapore, Japan and Republic of Korea, where the next and final round of negotiation will take place before the end of 2024. In signing the Statement, financial institutions acknowledge that the finance sector has an important role in mitigating financial risks related to plastic pollution and they are taking this opportunity to inform negotiators what a robust agreement would include from their perspective.
The statement specifically asks for the treaty to be supported by binding rules and obligations for governments to address the full life cycle of plastic, for it to be based on a scientific approach and for it to create the framework to align all economic participants with its objectives. Furthermore, it asks for the treaty to include harmonised targets across the plastics value chain and to ensure that companies assess and disclose plastic-related risks and opportunities. It also stresses the importance of promoting an enabling policy environment for the transition to a sustainable and equitable economy that addresses plastic pollution, suggesting initiatives such as extended producer responsibility schemes (EPR).
Plastic pollution is closely linked with the triple planetary crisis of climate change, biodiversity loss and pollution. Plastic is projected to account for 15% of greenhouse gas emissions by 2050 if no action is taken, and plastic pollution is clearly identified as an important issue in the 7th target of the Global Biodiversity Framework that has the aim of “preventing, reducing, and working towards eliminating plastic pollution”. The Statement makes the link between these environmental issues and underscores the synergistic benefits of addressing plastic pollution on climate action and the just transition, as well as on biodiversity preservation and restoration.
The statement has been prepared by UNEP FI, the Principles for Responsible Investment, Finance for Biodiversity Foundation, the Business Coalition for a Global Plastics Treaty, the Dutch Association of Investors for Sustainable Development (VBDO) and CDP.
Download the statement and list of signatories here.