Does the UN’s INC-5.2 Plastic Treaty Impact Manufacturers?

As plastic pollution climbs above 460 million tonnes per year, manufacturing faces mounting pressure. 

Of that, around 20 million tonnes leak into the environment, according to The International Union for Conservation of Nature. At the heart of current talks is the fifth round of negotiations for a United Nations plastics treaty, known as INC-5.2, held in Geneva. 

However, a draft text introduced by the discussion's Chair has triggered broad opposition from both governments and civil society groups.

The treaty, if adopted, could set global production standards and reshape plastic usage across sectors forcing manufacturers to reconsider the way they make and deliver products.

Treaty negotiations spark concern over missing production limits

The Intergovernmental Negotiating Committee (INC) was established by the United Nations Environment Assembly in 2022 to develop the first legally binding global treaty aimed at ending plastic pollution. 

INC-5.2 aims to produce a new draft text that reflects ambition, enforceability and broad international support.

However, the version presented excludes key components, most notably a proposed article on reducing plastic production.

"A successful agreement must reflect those differences while keeping our shared goal in focus: keeping plastics in the economy and out of the environment," writes Chris Jahn, President and Chief Executive of the American Chemistry Council, on LinkedIn. "The global plastics industry is ready to do its part."

Global industry and civil groups call for stronger terms

The Global Alliance for Incinerator Alternatives (GAIA), a network of more than 1,000 grassroots groups and organisations in over 90 countries, has called for a bold and binding treaty addressing the full lifecycle of plastics.

“This new text sends a clear message to the world: we do not care about your health,” says Ana Le Rocha, Director of Global Plastics Policy at GAIA. “We do not care about science. We do not care about human rights. We do not care about your future. We only care about consensus.”

Senior voices within the United Nations system are also calling for clearer commitments.

“Enough is enough. Nations are gathered in Geneva, negotiating a legally binding plastics treaty, but this is no time for timid agreements or fossil-fuel appeasements,” writes Juan Carlos Monterrey Gómez, Vice President of the Bureau – Latin America & the Caribbean at UN Climate Change on LinkedIn.

“The clock is ticking. Either our leaders meet this moment or our planet will drown in the brutal cost of inaction. No excuses. No delay.”

Others suggest the draft reflects a weak and exclusionary process.

“The Chair’s text is a clear reflection of a weak process, and the provisions do not provide meaningful ways to end plastic pollution,” says Mohamed Kamal, Executive Director at the Greenish Foundation in Egypt.

“These back-handed manoeuvres are undemocratic and leave civil society and ambitious Member States in the dark,” adds SiPeng of C4 Center in Malaysia.

“No treaty is better than a bad treaty,” says Thais Carvajal of Alianza Basura Cero Ecuador. “If we come out of INC-5.2 without an agreed upon text, it means that ambitious Member States stood up and refused to compromise on fossil fuel interests. If they take that brave step, civil society will have their backs.”

Business leaders and manufacturers could face direct impact

For manufacturers, particularly in plastics, chemicals and consumer goods, the outcome of INC-5.2 has direct implications. The latest draft has removed several proposed measures, despite wide support from countries and stakeholders:

• More than 100 countries supporting plastic production cuts
• More than 100 countries supporting binding product and harmful chemicals phaseouts
• Almost 130 countries supporting a dedicated article on health
• More than 150 countries that support a strong financial mechanism

This has drawn concern from major firms.

“Nestlé is one of more than 300 businesses and investors supporting the call for an ambitious and legally binding treaty addressing the full lifecycle,” writes Chris Hogg, Global Head of Public Affairs at Nestlé, on LinkedIn. 

“We feel this is really important. It’s rare to see business and civil society so aligned on environmental issues, this is one of those moments.”

Should a binding treaty emerge from INC-5.2, various manufacturing sectors could see new rules introduced.

Petrochemical producers including BASF, DOW and LyondellBasell may face limitations on virgin plastic production. 

Consumer goods firms like Nestlé, Unilever, Procter & Gamble, Coca-Cola and PepsiCo may need to scale up reusable, recyclable or non-toxic packaging. Retailers and logistics providers such as Walmart, Amazon and Costco could be required to modify supply chains to fit circular models.

For companies innovating in materials and chemicals, including BASF, LG Chem and Merck, a stronger treaty could push new demand for alternatives to single-use plastic. Investment institutions like Chase, Wells Fargo and Citibank may also face expectations to steer capital into sustainable materials and waste solutions.

If INC-5.2 results in a diluted agreement, these companies could continue operating under the status quo, contributing to what the Organisation for Economic Co-operation and Development estimates as more than one billion tonnes of global plastic waste.

As negotiations continue, industry leaders face uncertainty but also the potential for a clearer global framework to manage plastics production, recycling and environmental responsibility.