The Economics of Plastics
The Global Plastics Treaty
How countries began negotiating a global treaty to end plastic pollution in 2022, why oil-producing and manufacturing nations disagreed over production limits, and India's position.
In March 2022, the UN Environment Assembly agreed to negotiate a global treaty to end plastic pollution.
The debate
- High-ambition countries, like many in Europe and Africa, wanted limits on plastic production.
- Oil-producing countries like Saudi Arabia and some manufacturers wanted to focus on waste management and recycling instead.
India’s position
India emphasised waste management, national flexibility and development needs, opposing binding production caps.
Negotiations
- Talks in Busan (2024) and Geneva (August 2025) failed to reach agreement.
Collective action problem
Every country benefits from less plastic pollution, but each prefers others to bear the costs, a classic collective action problem.
What’s at stake
Plastic production is expected to keep rising without action.
Lesson
Global environmental deals are hard when economic interests differ sharply.
In Geneva in 2025, negotiators from over 170 countries couldn't agree whether to cap plastic production.
Negotiations failed to reach agreement by 2025.
- UN talks on a plastics treaty began in 2022.
- Countries split over production limits.
- India emphasised waste management.
- Talks in 2024 and 2025 failed to agree.
No recording for this one yet - EconReader can read it aloud for you.