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ADB BRIEFS

ISBN 978-92-9270-574-9 (print)

ISBN 978-92-9270-575-6 (electronic)

ISSN 2071-7202 (print)

ISSN 2218-2675 (electronic)

Publication Stock No. BRF230613-2

DOI: http://dx.doi.org/10.22617/BRF230613-2

KEY POINTS

• Plastic significantly

contributes to climate

change. By 2050, emissions

generated from the plastic

life cycle could exceed

56gigatons,or up to

10%–13% of the remaining

carbon limit set by the

ParisAgreement. The growing

rate of plastic production

poses a major challenge to

mitigating climate change.

• In the anticipated Global

Plastics Treaty (GPT),

circular economy is key to

fighting climate change.

Key steps include extended

producer responsibility(EPR),

less plastic production,

tackling problematic

plastics, low-carbon

energy sources, and better

wastemanagement.

• The Asian Development

Bank (ADB) can scale up

support to reduce plastic

pollution through policy

reforms that enable circular

economy. ADB can further

support countries to develop

EPR frameworks and

plastic credit schemes, and

implement advance waste

management technologies.

• ADB can support the

Global Plastics Treaty

implementation through

financing, including sovereign

and privatesector lending

with added co-benefits

for climateaction.

Roger Joseph (Rocky) Guzman

International Governance, Policy,

and Legal Consultant

Technical Assistance on Promoting

Action on Plastic Pollution from

Source to Sea in Asia and the Pacific

Asian Development Bank

BACKGROUND AND INTRODUCTION

The Global Plastic Pollution Crisis

The excessive production and consumption of plastic, especially avoidable and

single-use packaging, has led to major mismanagement of its disposal. This has

caused large-scale pollution that negatively impacts the environment, human health,

coastal communities, and food chains. However, despite this, the production of plastic

continues to grow. During 2000–2019, the annual global production of plastics has

doubled from 234 million metric tons to 460 million metric tons, mostly consisting of

short-lived products.1 Under current trends, it is projected that the global production

and consumption of plastic will triple by 2060 (footnote 1).

Plastic Pollution and Climate Change Linkages

Plastic contributes substantially to climate change throughout its life cycle. In 2019,

plastics generated 1.8 billion metric tons, or 3.8% of the world’s total greenhouse gas

(GHG) emissions.2 As much as 90% of those emissions come from plastic production

and conversion from fossil fuels (footnote 2). According to a 2017 study, 99% of plastics

1 Organisation for Economic Co-operation and Development (OECD). 2022. Global Plastics Outlook:

Economic Drivers, Environmental Impacts and Policy Options. Paris: OECD Publishing.

2 H. S. Charlton-Howard et al. 2023. ‘Plasticosis’: Characterizing Macro- and Microplastic-associated

Fibrosis in Seabird Tissues. Journal of Hazardous Materials. 450. pp. 131090.

Addressing Plastic Pollution

for Climate Benefits: Opportunities

in the Global Plastics Treaty

for Asia and the Pacific

James Baker

Senior Circular Economy Specialist

(Plastic Wastes)

Climate Change, Resilience, and

Environment Cluster

Climate Change and Sustainable

Development Department

Asian Development Bank

NO. 284

JANUARY

2024

ADB BRIEFS NO. 284

are made from chemicals obtained from fossil fuels, and the two

sectors are closely linked through production processes and

investments.3

Disposal of plastic waste, especially incineration, also contributes

to GHG emissions. Carbon emissions from plastic incineration is

estimated to have reached 850 million tons in 2019 alone.4

Climate change influences the distribution of plastic pollution

through the increased occurrence of extreme weather events

and flooding. Plastic pollution also weakens the resilience of

ecosystems to adapt to climate change and exacerbates flooding

by blocking waterways.

By 2050, the combined GHG emissions from plastic production

and incineration are projected to surpass 56 gigatons, representing

approximately 10%–13% of the remaining carbon budget or the

amount of GHGs that can be emitted to remain within the Paris

Agreement targets (footnote4). In a business-as-usual scenario,

plastics could contribute up to 19% of the global GHG emissions

allowed to stay within 1.5°C by 2040 (footnote 4).

Among the major materials industries, such as cement and

aluminum, plastics are still projected to experience the highest

net growth in GHG emissions, making it the sector with

the most substantial projected increase in emissions under

current rates.5 The expansion of plastic production and the

accompanying GHG emissions present a big challenge to

mitigating climatechange.

THE PLASTICS–CLIMATE CHANGE NEXUS

Carbon Footprint Throughout the Plastic Life Cycle

Every stage of the plastic life cycle, from extraction and processing

of raw materials to the design, manufacturing, packaging,

distribution, utilization, maintenance, and end-of-life management

contributes to the generation of GHG emissions. The entire life

cycle must be assessed when evaluating the impact of plastics

on climate change. This can be divided into the following three

main stages:

Extraction and production. Significant GHG emissions are

generated from methane leakage and emissions from fuel

combustion, as well as the energy consumed during the drilling

process for oil or gas (footnote 4). Emissions are also produced

when forests and fields are cleared to create space for well pads

and pipelines (footnote4). Plastic refining is recognized as one of

the most emissions-heavy sectors, which involves various chemical

processes such as cracking and polymerization to form plastic

resins (footnote 4).

3 Center for International Environmental Law (CIEL). 2017. Fueling Plastics: Fossils, Plastics, & Petrochemical Feedstocks. Washington, DC.

4 CIEL. 2019. Plastic & Climate: The Hidden Costs of a Plastic Planet. Washington, DC.

5 Material Economics. 2018. The Circular Economy—A Powerful Force for Climate Mitigation. Stockholm: Material Economics.

6 International Union for Conservation of Nature (IUCN). 2021. Marine Plastic Pollution. IUCN Issues Brief. November. Gland.

7 M. Cole et al. 2016. Microplastics Alter the Properties and Sinking Rates of Zooplankton Faecal Pellets. Environmental Science and Technology. 50 (6).

pp.3239–3246.

Plastic production processes are also highly energy-intensive,

with roughly half of its raw materials coming from carbon products,

while the remaining half becomes embedded within the plastic

materials (footnote 5). In 2015, the primary production of plastics

alone resulted in the emission of more than 1 billion metric tons of

carbon dioxide (CO2), equivalent to over 3% of global fossil fuel

emissions. In comparison, the entire agriculture sector contributes

approximately 10%–15% of GHGemissions (footnote 3).

Disposal and waste management. Incineration and open

burning are the main sources of GHGemissions in plastic waste

management, as these activities release carbon directly into the

atmosphere. Plastics also contain harmful additives that can be

released into the environment during the combustion process.

In2015, the net GHG emissions from incinerating plastics

packaging reached 16 million metric tons (footnote 3).

Out of the total plastic packaging waste globally, 50% is disposed

of in sanitary landfills, 19% is sent to incineration facilities, and

a mere 9% is recycled, although for developing countries these

figures are considerably much lower (footnote 1). The remaining

22% follow alternative routes, including open dumping and burning

(footnote1).

Plastic pollution in the marine environment and impacts on

ocean climate regulation. When plastic is not properly managed,

it remains in the environment and continues to have climate

impacts as it degrades. In particular, plastic pollution has adverse

impacts on the world’s oceans, which have historically absorbed

a substantial portion of carbon emissions through the capture of

carbon by phytoplankton and zooplankton.

At least 14 million tons of plastic pollution enter the ocean every

year, making up 80% of marine debris.6 When plastic waste breaks

down, it fragments into smaller pieces called microplastics. Inthe

marine environment, microplastics limit the ocean’s ability to

effectively absorb and retain carbon.7 Although evidence is still

emerging, studies show that carbon-feeding marine organisms are

increasingly being contaminated by microplastics (footnote 3).

In 2015, the primary production

of plastics alone resulted in the

emission of more than 1 billion

metric tons of carbon dioxide,

equivalent to over 3% of global

fossil fuel emissions.

Addressing Plastic Pollution for Climate Beneﬁts

Mismanaged plastic pollution may indirectly contribute to climate

change by disrupting the carbon sequestration of foundational

species in ocean food chains.

OPPORTUNITIES FOR CLIMATE CHANGE

MITIGATION IN THE GLOBAL

PLASTICS TREATY

Global Plastics Treaty—Background

To reach the Paris Agreement goals, a comprehensive approach

is required to manage the entire plastic life cycle. Minimizing the

climate impact of plastics also requires a coordinated approach

to align with countries’ nationally determined contributions

(NDCs) as part of the United Nations Framework Convention on

ClimateChange.

However, achieving a sustainable plastics economy aligned

with global climate goals has been challenging. Barriers have

included knowledge gaps around plastic waste solutions, technical

challenges in recycling all types of plastics to high-quality grades,

and underdeveloped value chains.8 Lack of investable ventures,

markets, and financing opportunities as well as industry awareness

and participation also pose challenges in ensuring circularity and

systems change.9

In response, in March 2022, the United Nations Environment

Assembly (UNEA) adopted a resolution with the objective of

ending plastic pollution.10 This resolution outlined a target to

draft an internationally legally binding agreement (or the “Global

Plastics Treaty” or GPT) on plastics by 2024, to be opened for

adoption by countries by 2025. The GPT's main aim is to create a

comprehensive framework that addresses all aspects of the plastic

life cycle from extraction to disposal.

The GPT elements include core obligations, control measures,

and voluntary approaches to address plastic pollution, the

establishment of implementation measures, and the means of

implementation. At the center of the global agreement is the

development of national-level plans for reducing plastic pollution.

These plans will translate international commitments into concrete

policies and actions aimed at mitigating the plastics crisis.

8 J. P. Lange. 2021. Managing Plastic Waste-Sorting, Recycling, Disposal, and Product Redesign. ACS Sustainable Chemistry and Engineering. 9 (47).

pp. 15722–15738.

9 The Circulate Initiative. 2023. The Plastics Circularity Investment Tracker: Monitoring Capital Flows to Tackle the Plastic Pollution Challenge. March. Singapore.

10 UNEA Resolution 5/14 entitled “End Plastic Pollution: Towards an International Legally Binding Instrument.”

11 C. Scheel et al. 2020. Decoupling Economic Development from the Consumption of Finite Resources Using Circular Economy. A Model for Developing

Countries. Sustainability. 12 (4). 1291.

12 PETCO et al. 2022. Integrating Extended Producer Responsibility Into the Negotiations for an International Plastics Treaty. Position Paper.

13 Eureka Recycling. 2009. Recycling Plastic: Complications & Limitations. April. Minneapolis, United States (US).

Opportunities to achieve co-benefits for climate change mitigation

may include the following:

Mainstreaming circular economy through extended producer

responsibility for waste prevention. To effectively tackle climate

change and plastic pollution, economies must transition toward

a circular approach that decouples economic growth from the

consumption of finite resources.11 Circular economy uses business

models that prolong the lifespan of products and materials.

Thisminimizes material production, reduces the consumption of

raw materials, and lowers GHG emissions. The GPT is envisioned

to foster circular practices to address plastic pollution and

climatechange.

By implementing business models that enhance resource utilization

and extend the lifespan of material-intensive assets, itis possible to

reduce emissions by approximately 62 million metric tons of CO2

annually (footnote 5). This requires the adoption of energy-efficient

technologies in manufacturing, improvements in raw material

design and management, and increased use and reuse by producers.

Substantial progress can be made in plastic waste management

through reducing waste in production and prolonging product

lifecycles.

To achieve these goals, the GPT offers an opportunity to

mainstream extended producer responsibility (EPR) schemes that

cover the entire life cycle of products and packaging. EPR holds

producers responsible for the environmental impacts of their goods

through legal and financial obligations.12 EPR systems provide a

framework for producers to take accountability for their products

and support environmentally friendly practices (footnote 12).

This approach plays a vital role in funding the collection and proper

management of waste while encouraging the development of

products that prioritize efficient resource utilization at every stage,

including repair, reuse, and recycling.

Promoting reduction at source and addressing nonessential

and problematic plastics. The production, usage, and disposal

of plastic packaging are escalating at a rapid pace, surpassing the

capacity of current waste management practices (footnote 3). This

is due to the sheer quantity of plastic being produced, the complex

composition of multilayered packaging, and the challenges posed

by contamination.13 TheGPT could address this through the

establishment of core obligations to reduce plastic production.

/11

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NO.284ADBBRIEFSJANUARY2024KEYPOINTSAddressingPlasticPollutionforClimateBenefits:Opportunities•PlasticsignificantlyintheGlobalPlasticsTreatycontributestoclimateforAsiaandthePacificchange.By2050,emissionsgeneratedfromtheplasticRogerJoseph(Rocky)GuzmanJamesBakerlifecyclecouldexceedInternationalGovernance,Policy,SeniorCircularEconomySpecialist56gigatons,orupto10%–13%oftheremainingandLegalConsultant(PlasticWastes)carbonlimitsetbytheTechnicalAssistanceonPromotingClimateChange,Resilience,andParisAgreement.ThegrowingrateofplasticproductionActiononPlasticPollutionfromEnvironmentClusterposesamajorchallengetoSourcetoSeainAsiaandthePacificClimateChangeandSustainablemitigatingclimatechange.AsianDevelopmentBankDevelopmentDepartment•IntheanticipatedGlobalAsianDevelopmentBankPlasticsTreaty(GPT),circulareconomyiskeytoBACKGROUNDANDINTRODUCTIONfightingclimatechange.KeystepsincludeextendedTheGlobalPlasticPollutionCrisisproducerresponsibility(EPR),lessplasticproduction,Theexcessiveproductionandconsumptionofplastic,especiallyavoidableandtacklingproblematicsingle‑usepackaging,hasledtomajormismanagementofitsdisposal.Thishasplastics,low‑carboncausedlarge-scalepollutionthatnegativelyimpactstheenvironment,humanhealth,energysources,andbettercoastalcommunities,andfoodchains.However,despitethis,theproductionofplasticwastemanagement.continuestogrow.During2000–2019,theannualglobalproductionofplasticshasdoubledfrom234millionmetrictonsto460millionmetrictons,mostlyconsistingof•TheAsianDevelopmentshort-livedproducts.1Undercurrenttrends,itisprojectedthattheglobalproductionBank(ADB)canscaleupandconsumptionofplasticwilltripleby2060(footnote1).supporttoreduceplasticpollutionthroughpolicyPlasticPollutionandClimateChangeLinkagesreformsthatenablecirculareconomy.ADBcanfurtherPlasticcontributessubstantiallytoclimatechangethroughoutitslifecycle.In2019,supportcountriestodevelopplasticsgenerated1.8billionmetrictons,or3.8%oftheworld’stotalgreenhousegasEPRframeworksand(GHG)emissions.2Asmuchas90%ofthoseemissionscomefromplasticproductionplasticcreditschemes,andandconversionfromfossilfuels(footnote2).Accordingtoa2017study,99%ofplasticsimplementadvancewastemanagementtechnologies.1OrganisationforEconomicCo-operationandDevelopment(OECD).2022.GlobalPlasticsOutlook:EconomicDrivers,EnvironmentalImpactsandPolicyOptions.Paris:OECDPublishing.•ADBcansupporttheGlobalPlasticsTreaty2H.S.Charlton-Howardetal.2023.‘Plasticosis’:CharacterizingMacro-andMicroplastic-associatedimplementationthroughFibrosisinSeabirdTissues.JournalofHazardousMaterials.450.pp.131090.financing,includingsovereignandprivatesectorlendingwithaddedco‑benefitsforclimateaction.ISBN978-92-9270-574-9(print)ISBN978-92-9270-575-6(electronic)ISSN2071-7202(print)ISSN2218-2675(electronic)PublicationStockNo.BRF230613-2DOI:http://dx.doi.org/10.22617/BRF230613-2ADBBRIEFSNO.284aremadefromchemicalsobtainedfromfossilfuels,andthetwoIn2015,theprimaryproductionsectorsarecloselylinkedthroughproductionprocessesandofplasticsaloneresultedintheinvestments.3emissionofmorethan1billionmetrictonsofcarbondioxide,Disposalofplasticwaste,especiallyincineration,alsocontributesequivalenttoover3%ofglobaltoGHGemissions.Carbonemissionsfromplasticincinerationisfossilfuelemissions.estimatedtohavereached850milliontonsin2019alone.4ClimatechangeinfluencesthedistributionofplasticpollutionPlasticproductionprocessesarealsohighlyenergy-intensive,throughtheincreasedoccurrenceofextremeweathereventswithroughlyhalfofitsrawmaterialscomingfromcarbonproducts,andflooding.Plasticpollutionalsoweakenstheresilienceofwhiletheremaininghalfbecomesembeddedwithintheplasticecosystemstoadapttoclimatechangeandexacerbatesfloodingmaterials(footnote5).In2015,theprimaryproductionofplasticsbyblockingwaterways.aloneresultedintheemissionofmorethan1billionmetrictonsofcarbondioxide(CO2),equivalenttoover3%ofglobalfossilfuelBy2050,thecombinedGHGemissionsfromplasticproductionemissions.Incomparison,theentireagriculturesectorcontributesandincinerationareprojectedtosurpass56gigatons,representingapproximately10%–15%ofGHGemissions(footnote3).approximately10%–13%oftheremainingcarbonbudgetortheamountofGHGsthatcanbeemittedtoremainwithintheParisDisposalandwastemanagement.IncinerationandopenAgreementtargets(footnote4).Inabusiness-as-usualscenario,burningarethemainsourcesofGHGemissionsinplasticwasteplasticscouldcontributeupto19%oftheglobalGHGemissionsmanagement,astheseactivitiesreleasecarbondirectlyintotheallowedtostaywithin1.5°Cby2040(footnote4).atmosphere.Plasticsalsocontainharmfuladditivesthatcanbereleasedintotheenvironmentduringthecombustionprocess.Amongthemajormaterialsindustries,suchascementandIn2015,thenetGHGemissionsfromincineratingplasticsaluminum,plasticsarestillprojectedtoexperiencethehighestpackagingreached16millionmetrictons(footnote3).netgrowthinGHGemissions,makingitthesectorwithOutofthetotalplasticpackagingwasteglobally,50%isdisposedthemostsubstantialprojectedincreaseinemissionsunderofinsanitarylandfills,19%issenttoincinerationfacilities,andcurrentrates.5Theexpansionofplasticproductionandtheamere9%isrecycled,althoughfordevelopingcountriestheseaccompanyingGHGemissionspresentabigchallengetofiguresareconsiderablymuchlower(footnote1).Theremainingmitigatingclimatechange.22%followalternativeroutes,includingopendumpingandburning(footnote1).THEPLASTICS–CLIMATECHANGENEXUSPlasticpollutioninthemarineenvironmentandimpactsonCarbonFootprintThroughoutthePlasticLifeCycleoceanclimateregulation.Whenplasticisnotproperlymanaged,itremainsintheenvironmentandcontinuestohaveclimateEverystageoftheplasticlifecycle,fromextractionandprocessingimpactsasitdegrades.Inparticular,plasticpollutionhasadverseofrawmaterialstothedesign,manufacturing,packaging,impactsontheworld’soceans,whichhavehistoricallyabsorbeddistribution,utilization,maintenance,andend-of-lifemanagementasubstantialportionofcarbonemissionsthroughthecaptureofcontributestothegenerationofGHGemissions.Theentirelifecarbonbyphytoplanktonandzooplankton.cyclemustbeassessedwhenevaluatingtheimpactofplasticsonclimatechange.ThiscanbedividedintothefollowingthreeAtleast14milliontonsofplasticpollutionentertheoceaneverymainstages:year,makingup80%ofmarinedebris.6Whenplasticwastebreaksdown,itfragmentsintosmallerpiecescalledmicroplastics.IntheExtractionandproduction.SignificantGHGemissionsaremarineenvironment,microplasticslimittheocean’sabilitytogeneratedfrommethaneleakageandemissionsfromfueleffectivelyabsorbandretaincarbon.7Althoughevidenceisstillcombustion,aswellastheenergyconsumedduringthedrillingemerging,studiesshowthatcarbon-feedingmarineorganismsareprocessforoilorgas(footnote4).Emissionsarealsoproducedincreasinglybeingcontaminatedbymicroplastics(footnote3).whenforestsandfieldsareclearedtocreatespaceforwellpadsandpipelines(footnote4).Plasticrefiningisrecognizedasoneofthemostemissions-heavysectors,whichinvolvesvariouschemicalprocessessuchascrackingandpolymerizationtoformplasticresins(footnote4).3CenterforInternationalEnvironmentalLaw(CIEL).2017.FuelingPlastics:Fossils,Plastics,&PetrochemicalFeedstocks.Washington,DC.4CIEL.2019.Plastic&Climate:TheHiddenCostsofaPlasticPlanet.Washington,DC.5MaterialEconomics.2018.TheCircularEconomy—APowerfulForceforClimateMitigation.Stockholm:MaterialEconomics.6InternationalUnionforConservationofNature(IUCN).2021.MarinePlasticPollution.IUCNIssuesBrief.November.Gland.7M.Coleetal.2016.MicroplasticsAlterthePropertiesandSinkingRatesofZooplanktonFaecalPellets.EnvironmentalScienceandTechnology.50(6).pp.3239–3246.2AddressingPlasticPollutionforClimateBenefitsMismanagedplasticpollutionmayindirectlycontributetoclimateOpportunitiestoachieveco-benefitsforclimatechangemitigationchangebydisruptingthecarbonsequestrationoffoundationalmayincludethefollowing:speciesinoceanfoodchains.MainstreamingcirculareconomythroughextendedproducerOPPORTUNITIESFORCLIMATECHANGEresponsibilityforwasteprevention.ToeffectivelytackleclimateMITIGATIONINTHEGLOBALchangeandplasticpollution,economiesmusttransitiontowardPLASTICSTREATYacircularapproachthatdecoupleseconomicgrowthfromtheconsumptionoffiniteresources.11CirculareconomyusesbusinessGlobalPlasticsTreaty—Backgroundmodelsthatprolongthelifespanofproductsandmaterials.Thisminimizesmaterialproduction,reducestheconsumptionofToreachtheParisAgreementgoals,acomprehensiveapproachrawmaterials,andlowersGHGemissions.TheGPTisenvisionedisrequiredtomanagetheentireplasticlifecycle.Minimizingthetofostercircularpracticestoaddressplasticpollutionandclimateimpactofplasticsalsorequiresacoordinatedapproachclimatechange.toalignwithcountries’nationallydeterminedcontributions(NDCs)aspartoftheUnitedNationsFrameworkConventiononByimplementingbusinessmodelsthatenhanceresourceutilizationClimateChange.andextendthelifespanofmaterial-intensiveassets,itispossibletoreduceemissionsbyapproximately62millionmetrictonsofCO2However,achievingasustainableplasticseconomyalignedannually(footnote5).Thisrequirestheadoptionofenergy-efficientwithglobalclimategoalshasbeenchallenging.Barriershavetechnologiesinmanufacturing,improvementsinrawmaterialincludedknowledgegapsaroundplasticwastesolutions,technicaldesignandmanagement,andincreaseduseandreusebyproducers.challengesinrecyclingalltypesofplasticstohigh-qualitygrades,Substantialprogresscanbemadeinplasticwastemanagementandunderdevelopedvaluechains.8Lackofinvestableventures,throughreducingwasteinproductionandprolongingproductmarkets,andfinancingopportunitiesaswellasindustryawarenesslifecycles.andparticipationalsoposechallengesinensuringcircularityandsystemschange.9Toachievethesegoals,theGPToffersanopportunitytomainstreamextendedproducerresponsibility(EPR)schemesthatInresponse,inMarch2022,theUnitedNationsEnvironmentcovertheentirelifecycleofproductsandpackaging.EPRholdsAssembly(UNEA)adoptedaresolutionwiththeobjectiveofproducersresponsiblefortheenvironmentalimpactsoftheirgoodsendingplasticpollution.10Thisresolutionoutlinedatargettothroughlegalandfinancialobligations.12EPRsystemsprovideadraftaninternationallylegallybindingagreement(orthe“GlobalframeworkforproducerstotakeaccountabilityfortheirproductsPlasticsTreaty”orGPT)onplasticsby2024,tobeopenedforandsupportenvironmentallyfriendlypractices(footnote12).adoptionbycountriesby2025.TheGPT'smainaimistocreateaThisapproachplaysavitalroleinfundingthecollectionandpropercomprehensiveframeworkthataddressesallaspectsoftheplasticmanagementofwastewhileencouragingthedevelopmentoflifecyclefromextractiontodisposal.productsthatprioritizeefficientresourceutilizationateverystage,includingrepair,reuse,andrecycling.TheGPTelementsincludecoreobligations,controlmeasures,Promotingreductionatsourceandaddressingnonessentialandvoluntaryapproachestoaddressplasticpollution,theandproblematicplastics.Theproduction,usage,anddisposalestablishmentofimplementationmeasures,andthemeansofofplasticpackagingareescalatingatarapidpace,surpassingtheimplementation.Atthecenteroftheglobalagreementisthecapacityofcurrentwastemanagementpractices(footnote3).Thisdevelopmentofnational-levelplansforreducingplasticpollution.isduetothesheerquantityofplasticbeingproduced,thecomplexTheseplanswilltranslateinternationalcommitmentsintoconcretecompositionofmultilayeredpackaging,andthechallengesposedpoliciesandactionsaimedatmitigatingtheplasticscrisis.bycontamination.13TheGPTcouldaddressthisthroughtheestablishmentofcoreobligationstoreduceplasticproduction.8J.P.Lange.2021.ManagingPlasticWaste-Sorting,Recycling,Disposal,andProductRedesign.ACSSustainableChemistryandEngineering.9(47).pp.15722–15738.9TheCirculateInitiative.2023.ThePlasticsCircularityInvestmentTracker:MonitoringCapitalFlowstoTacklethePlasticPollutionChallenge.March.Singapore.10UNEAResolution5/14entitled“EndPlasticPollution:TowardsanInternationalLegallyBindingInstrument.”11C.Scheeletal.2020.DecouplingEconomicDevelopmentfromtheConsumptionofFiniteResourcesUsingCircularEconomy.AModelforDevelopingCountries.Sustainability.12(4).1291.12PETCOetal.2022.IntegratingExtendedProducerResponsibilityIntotheNegotiationsforanInternationalPlasticsTreaty.PositionPaper.13EurekaRecycling.2009.RecyclingPlastic:Complications&Limitations.April.Minneapolis,UnitedStates(US).3ADBBRIEFSNO.284Thebestwaytoavoidthisisthroughwastepreventionandcountrystrategiestotackleclimatechange.Theseplansarecrucialminimizingproduction.14Sourcereduction,orreducingtheinmitigatingdomesticcarbonemissionsandimplementingclimategenerationofwasteinthefirstplace,significantlydecreaseschangeadaptationmeasures.TheupcomingGPTcanincorporateemissionsassociatedwithrawmaterialacquisitionandsimilaractionplanningrequirementstailoredtoeachcountry,manufacturingprocesses.15Byprioritizingtheproductionandoutliningpoliciesandactionsaimedataddressingplasticpollution.consumptionoffewerplastics,itispossibletoremovewasteNationalactionplanswillsupportturningcountryobligationsmanagementemissionsaltogether.intoconcretepoliciesandregulationssuitedtothespecificcircumstancesandneedsontheground.Limitingtheproductionofspecificplastictypesthatareavoidable,nonessential,and/orproblematicwouldsubstantiallyreduceToeffectivelyaddresstheclimateimpactsacrossdifferentstagesenergyemissionsgeneratedduringmanufacturing.Withinthroughouttheentirelifecycleofplastic,theseactionplanscantheframeworkoftheGPT,thiscouldinvolveimplementingbeusedtoenforcetargetsforreducingGHGemissionsaspartprohibitionsonsingle-useanddisposableplasticitems,eco‑designofplasticpollutionreductionstrategies.Thenationalactionplanforrecyclability,andpromotionofreusesystems,ensuringthatallframeworkfortheGPTshouldalsotakelessonsfromthelackofmaterialsaretreatedasvaluableresourcesandreintegratedrobustenforcementmechanismsundertheParisAgreementandintotheeconomyandeliminatingtheneedforincinerationensuretheestablishmentofmeasuresthatfacilitatecomplianceorlandfilling.withcountrycommitmentsandobligations.Promotinglow-carbonenergyuseinplasticlifecycleprocesses.POTENTIALINTERVENTIONSUsinglow-carbonenergysourcesthroughouttheentireplasticUNDERTHEGLOBALPLASTICSlifecycleisnecessarytomitigateclimatechangeimpacts.ThisTREATYASACLIMATECHANGEisrelevantforessentialproducts,suchaspharmaceuticalandMITIGATIONSTRATEGYmedicalitemsthatcannotbeextensivelyreducedoreliminated.ScenariostudiesshowthatcomplementingplasticsandclimateTherecommendationsunderthisbriefcoverpotentialcomponentsmitigationpoliciesacrosstheplasticlifecyclecouldleadtoaoftheGPTthatcouldyieldco-benefitsforclimatechangemitigation.two-thirdsdecreaseinemissions.Thiscouldbeattributedtoareductioninplasticuse,shiftstolesscarbon-intensiveenergyPossibleCoreObligations,ControlMeasures,sourcesforproductionandconversion,andloweringofindirectandVoluntaryApproachesemissionsfromelectricitygeneration(footnote1).Toeffectivelycombatplasticpollution,adiversesetofcontrolApproachestolow-carbonusageintheplasticsindustryinvolvemeasuresmustbeinplacetoaddresstheelimination,reduction,usingrenewableenergysources,enhancingenergyefficiencysafecirculation,andsafemanagementofplasticwaste.duringproductionprocesses,andexploringcarboncapturetechnologies.TheGPTframeworkcouldsupportresearchandUpstreamlifecycleapproach.Thereareproposalstoidentifydevelopmenteffortstoadvancesustainableproductionmethodsplasticproductsthatareunnecessaryandcontributetopollution,andimplementbenchmarkingsystemstoassessenergyefficiencyincludingsingle-useplastics.ByreducingoreliminatingtheuseofandCO2emissions.Regulatorymeasures,suchaspoliciesforairsuchproblematicandavoidableproducts,theeconomicviabilityofqualitystandardsandemissiontargetsandstructuringsubsidiestorecyclingcanimprove,encouragingthegrowthofastrongrecyclingincentivizeenergy-efficientalternativesinplasticsproduction,canmarket.Asidefromaddressingspecificplastictypes,itisalsoalsobeconsidered.importanttoaddresstheleakageofmicroplasticsthroughouttheentirelifecycle.ThepossiblecontrolmeasuresarediscussedEnhancingdownstreamwastemanagementandrecyclability.inTable1.TheGPTcouldincludemeasuresthatprohibittheincinerationandopenburningofplasticwaste,reducingGHGemissions.However,Midstreamlifecycleapproach.Bydesigningproductsandthiswouldmeanmorethanjustdiscontinuingincinerationandpackagingforreuseandrecyclability,moreplasticcanberecycled.unsustainablewastemanagementpractices.OptimizingthereusePromotingreduction,reuse,andrepairduringtheproductdesignandrecyclabilityofallwastestreamsthroughefficientsourcephasealsocontributestooverallresourceefficiency.Effectivelyseparationofwastewouldalsobenecessary.implementedEPRschemes,whichholdproducersresponsiblefortheenvironmentalconsequencesoftheirproductsfromEnsuringnationalcompliancetowardendingplasticpollutionproductiontodisposal,willbeanimportantpartofthisapproach.andclimatechangemitigation.TheParisAgreementrequiresThispromotesthegrowthoftherecyclingmarket,incentivizesstatepartiestocreateandupholdtheirNDCsandtheirindividual14CIEL.2017.FuelingPlastics:Fossils,Plastics&PetrochemicalFeedstocks.Washington,DC;GovernmentoftheUnitedStates,EnvironmentalProtectionAgency(EPA).2006.SolidWasteManagementandGreenhouseGases:ALife-CycleAssessmentofEmissionsandSinks.15GovernmentoftheUS,EPA.2015.DocumentationforGreenhouseGasEmissionandEnergyFactorsUsedintheWasteReductionModel.March.Washington,DC.4AddressingPlasticPollutionforClimateBenefitsTable1:PossibleControlMeasuresintheUpstreamLifeCycleofPlasticsPossibleControlMeasurePotentialContentReducingprimaryplastic•Establishglobaltargetstoreducetheproductionofprimaryplasticrawmaterials.polymers•Implementamoratoriumonprimaryproductionofplasticpolymersorban,limit,orreducethemanufacture,export,andimportofvirginplasticpolymers.•Establishtrackingandmonitoringrequirements.•Wherenecessary,establishlow-carbontargetsandgoalsformanufactureofplasticsandpackaging.Reducingproblematicand•Establishcriteriatodetermineproblematic,unnecessary,and/oravoidableplasticproducts.avoidableplasticproducts•Ban,phaseout,reduce,orcontroltheproduction,sale,distribution,trade,anduseofspecificproblematicandavoidableplasticproducts.•Classifyspecificproductsforcontrolmeasures:(i)groupswithhighfeasibilityofelimination,oratleastsignificantreductioninuse;and(ii)groupsthatcannotbetargetedforsignificantreductionoreliminationformaximumcirculation.Reducingmicroplastics•Ban,phaseout,reduce,orcontroltheuseofmicroplastics.•Ban,phaseout,reduce,orcontroltheproduction,sale,distribution,trade,anduseofmicroplasticsandproductscontainingthem.•Developguidelinesonthebestavailabletechnologyandbestenvironmentalpractices.Source:UnitedNationsEnvironmentProgramme.2023.PotentialOptionsforElementsTowardsanInternationalLegallyBindingInstrument,basedonaComprehensiveApproachthatAddressestheFullLifeCycleofPlasticsasCalledforbyUnitedNationsEnvironmentAssemblyResolution5/14.29May–2June.Paris.Table2:PossibleControlMeasuresintheMidstreamLifeCycleofPlasticsPossibleControlMeasurePotentialContentEstablishingEPRsystems•EstablishguidelinesforEPRsystems.•Providefinancialsupport,e.g.,taxexemptionsforrecyclingprojects.•Establishplatformsforknowledgesharingandinternationalcooperation.•EstablishthebestavailabletechnologiestoensurealignmentwiththeParisAgreement.Promotingdesignfor•Establishdesignandcircularitycriteriaforproductsandpackagingmanufacturingtoencourageandenablecircularityrecoveryandreuse.•Establishnationalrequirementsforthedesigncriteriatopromotecircularity.EPR=extendedproducerresponsibility.Source:UnitedNationsEnvironmentProgramme.2023.PotentialOptionsforElementsTowardsanInternationalLegallyBindingInstrument,basedonaComprehensiveApproachthatAddressestheFullLifeCycleofPlasticsasCalledforbyUnitedNationsEnvironmentAssemblyResolution5/14.29May–2June.Paris.producerstodesigncircularproducts,andreducestheleakageofPromotingreduction,reuse,andplasticwasteintotheenvironment.ThepossiblecontrolmeasuresrepairduringtheproductdesignarediscussedinTable2.phasealsocontributestooverallresourceefficiency.Downstreamlifecycleapproach.Tocomprehensivelyaddressplasticpollution,itisessentialtopreventtheleakageofplasticstheGPT.Thisprimarilyinvolvesfinancialassistance,technologyintothenaturalenvironment.Riversplayasignificantroletransfer,andcapacitybuildingfordevelopingcountriestomeetintransportinglargevolumesofplasticwasteintotheoceans.theircommitmentsundertheGPT.Plasticincinerationandopenburningreleasetoxicchemicalsandparticlessuchasdioxinsandfuransandcontributetopollution,Financialassistanceisnecessarytomeetcommitmentsassociatedwhileposingsubstantialrisks,especiallytoinformalwasteworkerswithinfrastructure,technologyadoption,andmonitoringsystems.whocomeindirectcontactwithsuchwaste.ThepossiblecontrolThissupporthelpspartiesfulfilltheirobligationsandpromotesmeasuresarediscussedinTable3.fairnessbyenhancingimplementationcapacitiesparticularlyforcountrieswithlimitedresources.FinancialassistancealsoMeansofImplementationMeansofimplementationreferstotheessentialresources,policies,andactionsneededforallpartiestofulfilltheirobligationsunder5ADBBRIEFSNO.284Table3:PossibleControlMeasuresintheDownstreamLifeCycleofPlasticsPossibleControlMeasurePotentialContentPromotingreduce,reuse,andrepair•Establishproductdesignstandardsandrequirements,includingforspecificplasticproductsandpackaging.•FosterreductionandreuseofplasticproductsthroughEPRanddeposit–refundandtake-backStrengtheningwastemanagementschemes,fees,tariffs,taxincentives,andtradebarrierremoval.Eliminatingreleasetothe•Regulatetheend-of-lifemanagementofplasticwastetoreduceleakagefrommismanagedwaste.environment•Prohibitincineration,openburning,co-firingincoal-firedpowerplantsandotherwaste-to-energyprocesses,cementkilns,andothersimilarprocesses.•Prohibitorreducethereleaseofplasticstotheenvironment.•Removeexistingplasticsintheenvironment.•Establishsector-specificmeasurese.g.,geardesignforabandoned,lost,ordiscardedfishinggear.•Developthebestavailabletechnologyandenvironmentalpractices,includingenvironmentalandemissionstandards,tominimizeandeliminatepollution.EPR=extendedproducerresponsibility.Source:UnitedNationsEnvironmentProgramme.2023.PotentialOptionsforElementsTowardsanInternationalLegallyBindingInstrument,basedonaComprehensiveApproachthatAddressestheFullLifeCycleofPlasticsasCalledforbyUnitedNationsEnvironmentAssemblyResolution5/14.29May–2June.Paris.facilitatestheexplorationofnoveltechnologiesandinnovativeThefinancialaspectsoftheGPTsolutionsthroughresearchanddevelopment.havenotyetbeendetermined,butitisanticipatedthatcountries,ThefinancialaspectsoftheGPThavenotyetbeendetermined,particularlydevelopingcountries,butitisanticipatedthatcountries,particularlydevelopingwillrequiresubstantialsupportcountries,willrequiresubstantialsupportforcapacitybuilding,forcapacitybuilding,technicaltechnicalassistance,andimplementation.Afinancialmechanismassistance,andimplementation.willalsoneedtobedevelopedtoimplementtheGPTprovisions.TheseshouldalsoberegularlyrevisedtoincorporatenewInitiativesrelatedtoacircularplasticeconomyshouldalignwithknowledgeandsupportedbytechnicalandfinancialassistancetoclimategoalsandcommitments.Itisthusimportanttolinktheensureefficacyontheground.16TheNAPscanalsoalignnationalGPTprovisionswiththecommitmentsalreadymadeunderthegoalsandtargetsforplasticreductionandpollutioninterventionsParisAgreement,especiallytowardmoreinvestmentsthatdeliverwiththegoalsandtargetssetundertheParisAgreementforco-benefits.climatemitigation.ImplementationMeasuresIncorporatingnationalreportingrequirementsallowspartiestosharetheirknowledge,experiences,andchallenges.ItservesTheGPTimplementationmeasuresmayincludenationalactionasavaluabletoolforidentifyingareasthatrequiresupportandplans(NAPs),nationalreportingrequirements,provisionsforprioritization.Nationalreportingalsofacilitatestheexchangeensuringcompliance,regularassessments,andreporting.NAPsofbestpracticesandinnovativeapproachesamongparties,couldserveasthecatalystforestablishingappropriatepolicy,promotingcollaboration.legislative,andinstitutionalframeworkstoeffectivelyimplementtheGPT'sprovisions.However,tomaximizetheeffectivenessofNAPs,keyenablingconditionsshouldbemet,suchasNAPsbeinglegallybindingandhavingstringentcompliancemeasureswithrobustmonitoring.16A.Marchetal.2023.EffectivenessofNationalActionPlans.GlobalPlasticsTreatyPolicyBrief.GlobalPlasticsPolicyCentreandDalhousieUniversity.6AddressingPlasticPollutionforClimateBenefitsADB:FINANCINGANDINVESTMENTHowCanADBSupportItsDMCstoReduceFORCLIMATECHANGEMITIGATIONPlasticPollution?ANDPLASTICPOLLUTIONREDUCTIONDevelopmentofExtendedProducerResponsibilityFrameworksTheAsianDevelopmentBank(ADB)hasaligneditsinvestment(i)Extendedproducerresponsibilityasaregulatoryandstrategytotackleclimatechangeandenhanceenvironmentalfinancingmechanism.EPRactsasaregulatoryframeworksustainability,includingplasticpollution.ADB’sStrategy2030aimsthatsetsmandatorycollectiontargetsandservesasatoachieveaprosperous,inclusive,resilient,andsustainableAsiafinancingmechanismforwastecollection,sorting,andandthePacificwhilepromotingtheconceptofcirculareconomy.17recycling.ThispolicyapproachincentivizesproducerstoItalsosupportsADBdevelopingmembercountries(DMCs)inminimizewastegenerationandimprovethedesignoftheirtheircommitmentstowardNetZero2050andhassetagoalofproductsandpackagingbyholdingthemaccountableforproviding$100billioninclimatefinancingfrom2019to2030,theirproductsuntilthepost-consumerstageofitslifecycleraisingthetargetfrom$80billion,andwiththeambitionofraising(footnote12).Itputsthecostofwastemanagementand$66billionforclimatemitigationefforts.18Theboostinfundingispollutionontheproducers,reducinggovernmentspendingenvisagedtoopenopportunitiesforclimatemitigationprojectsonwastemanagementinfrastructureortheneedtocollectanddrivepolicyreformstowardclimateactionandresiliencehouseholdwastefees.Thismobilizesfinanceforwaste(footnote18).Inaddition,ADBintroducedanewoperatingmodelmanagementandmakesrecyclabilitymorecostefficientin2023thatprioritizesinnovativesolutions,privatesectorgrowth,throughbetterdesignandefficientpackaging(footnote12).greatercommitmenttoclimatechange,andamoreresponsive,client-centricapproach.19(ii)Policysupportforextendedproducerresponsibility.ADBcansupportpolicyreformandcapacitydevelopmentintheADBishelpingitsDMCsreduceplasticpollutionbysupportingtheimplementationanddevelopmentofEPRframeworks.VietdevelopmentofactionplansandreformingpoliciestopromoteNamwasthefirstcountryinSoutheastAsiatoenactanacirculareconomyforplastics.ThisiscurrentlysupportedbyaEPRlegislationwhenthe2020EnvironmentalProtectionregionaltechnicalassistanceproject:PromotingActiononPlasticLawtookeffectinJanuary2022.ThelawimposedspecificPollutionfromSourcetoSeainAsiaandthePacific.20Throughtheresponsibilitiesonproducersandimportersregardingproject,ADBissupportingplasticpollutionreductioninvestmentstherecyclingandtreatmentofdiscardedproductsandandintegratedsolidwastemanagementsystemsthatalignwithpackagingassociatedwiththeirgoods.AdecreewasenactedcirculareconomyprinciplescoveringIndonesia,thePhilippines,tosupporttheimplementationofEPR,includinglabelingSriLanka,Thailand,andVietNam.andregistrationofproductsandrecyclingrequirements,eitherthroughself-implementation,anintermediaryorCirculareconomyisaprogrammaticsystemapproachthataimsthroughcontributiontotheVietNamEnvironmentaltosupporteconomicdevelopmentwhilebreakingawayfromProtectionFund.TheEPRlawinthePhilippineswasalsounsustainableconsumptionpractices.Itfocusesonvariousenactedin2022,withthegoalofrequiringmanufacturerssectorssuchasenergy,transport,water,urbandevelopment,totakeresponsibilityfor80%oftheirplasticpackagingdigitaltechnology,agricultureandfoodsecurity,climatewastefootprintby2028.21Largeenterprisesarerequiredchange,environment,andgenderandsocialdevelopment.toparticipateinEPR,whileparticipationisencouragedforTheimplementationofcirculareconomyinvolvesadoptingamicro,small,andmedium-sizedenterprises.country-specificapproach,promotingdigitaldevelopmentandinnovativetechnologies,andexpandingprivatesectoroperations(iii)Enablingconditionsforcirculareconomy.ADBcanhelp(footnote17).TheseeffortsalignwithotherADBinitiatives,supportenablingconditionsforaplasticscirculareconomyincludingtheActionPlanforHealthyOceansandSustainablethroughpolicyreform,developmentofwastemanagementBlueEconomiesandtheLivableCitiesprogram,thatensureainfrastructure,andcapacitybuilding.TheGovernmentofholisticandintegratedapproachtowardsustainabledevelopment.ThailandrecentlyadoptedtheRoadMaponPlasticWasteManagementPhase2,whichincludesplanstoenactanEPRADBcanprovidefinancialandtechnicalassistancetosupportlawonpackagingby2027.22InIndonesia,thereareexistingDMCs'readinessfortheGPTrollout.Thisbriefconsidersproducerresponsibilityschemesforthemanufacturing,opportunitiesinSoutheastAsiathatcouldbescaledacrossAsiaretail,andfoodandbeveragesectorsasoutlinedintheandthePacific.2019RoadmaponReducingPlasticPollutionbyProducers.17ADB.2018.Strategy2030:AchievingaProsperous,Inclusive,Resilient,andSustainableAsiaandthePacific.July.Manila.18ADB.2021.ADBRaises2019–2030ClimateFinanceAmbitionto$100Billion.Newsrelease.13October.19ADB.2022.OrganizationalReview:ANewOperatingModeltoAccelerateADB’sTransformationTowardStrategy2030andBeyond.October.Manila.20ADB.Regional:PromotingActiononPlasticPollutionfromSourcetoSeainAsiaandthePacific.21N.Medved-PoandS.DiGrande.2023.PositionPaper:HowPlasticCreditsareSupportingtheGlobalPlasticsTreaty.PlasticCreditExchange.22A.S.Suwarno.2023.UnlockingtheSolutiontoPlasticPollution:Thailand’sPushforCircularEconomyandExtendedProducerResponsibility.RegionalKnowledgeCentreforMarinePlasticDebris.27April.7ADBBRIEFSNO.284PlasticcreditsareaninnovativetoEPRthroughknowledgeproducts,training,andregionalfinancemechanismenablingworkshops.ADB’stechnicalassistanceprojectonPromotingcompaniestoinvestintheActiononPlasticPollutionfromSourcetoSeainAsiaanddevelopmentorexpansionofplasticthePacificalsoincludesvariousthematicareas,suchaswastemanagementinfrastructure.regionalcooperation,circulareconomy,andsupportforEPRthroughcommunityandbusinessbehaviorchangeHowever,thesehavenotbeeninstitutionalizedthroughlegalprograms,capacity‑buildinginitiatives,andpolicyandframeworksandthereispotentialforpolicyreformsupportregulatorymeasures.tostrengthenthesystem.23TheseprovideanopportunityforADBtoassistDMCsinaligningpolicyandinvestmentwithScalingupofPlasticCreditSchemescountrygoalsandobligations.(i)Aninnovativefinancemechanism.Plasticcreditsare(iv)Knowledgeexchangeforextendedproduceraninnovativefinancemechanismenablingcompaniesresponsibility.ADBcanscaleupitsknowledge-sharingtoinvestinthedevelopmentorexpansionofplasticplatformsandexchangebestpracticestoadoptEPRwastemanagementinfrastructure.ThisensuresthatanyschemestosupporttheimplementationoftheGPT.remainingplasticwasteinacompany’svaluechainwillbeThiscouldincludecustomizingEPRtoaddressspecificproperlycollectedandrecycled.24Broadly,plasticcreditscountrychallengesanduniquemarketrealities.ADBisaretransferableunitsthatrepresentplasticcollectedandalreadyinvolvedinregionalknowledgeactivitiesrelatedrecycledfromtheenvironment.25Typically,oneplasticcreditequalsthecollectionorrecyclingofonemetrictonofplasticwaste.Thesecreditsaregivenasrecognitionforsurpassingthestandardratesofplasticcollectionandrecyclingthatwouldhaveoccurredwithoutthem.Box:LessonsfromCarbonFinanceStimulatingprivatesectorfunding.Thecarboncreditmarketestablishesaplatformfortradingcarboncreditsandassigningamonetaryvaluetocarbonemissions.Carboncreditsaretradedfromsustainableprojectsthatreduceemissionssuchasenergyconservationinvestments.Insightsandmodelsfromcarbonfinance,suchastheCleanDevelopmentMechanism(CDM)carboncreditsintroducedbytheKyotoProtocol,haveledtosignificantinvestmentsinreducingmethaneandgreenhousegases.Initially,theCDMschemeachievedsuccesswiththeregistrationofnearly6,600projectsandtheissuanceofapproximately1.2billiontonsofcarbondioxide.aAlthoughtheKyotoProtocolimplementationeventuallycollapsedafter15years,thevoluntarycreditingapproachisknowntohavestimulatedsubstantialprivatesectorfundingatthetime.bCarboncreditmarketchallenges.TheeffectivenessoftheKyotomarketmechanismswassignificantlyaffectedbyalackofpoliticalcommitmentandthewithdrawalofinterestfromtargetcountries,whichresultedininsufficientdemand.ThislackofdemandledtounreliablepricesforCDMcredits,underminingtheircredibilityasreliablesourcesoffuturerevenue.Thecomplexitiesofthesemechanisms,alongwithchallengesinimplementingconsistentstandardsandunrealisticinformationrequirements,posedsignificantdifficultiesforprojectdevelopersandregulators(footnoteb).Systemicchangeisnecessary.PolicymakerscanlearnvaluablelessonsfromthepartiallysuccessfulinternationalcarbonmarketestablishedbytheCDM.Theselessonshighlighttheeffectivenessofcreditsystemsininvolvingbusinesses,creatingawareness,andmotivatinglocalactiontomakeapositiveimpact.However,itisessentialtorecognizethatcreditsystemsalonearenotenoughtobringaboutprofoundandtransformativechange.InthecontextofmobilizingfinancefortheGPT,achievingsystemicchangerequiressupportivepoliciesandstrongpoliticalcommitment,suchasthroughcomprehensiveextendedproducerresponsibility(EPR)systemsandothercontrolmeasures.caK.Kainou.2022.CollapseoftheCleanDevelopmentMechanismSchemeundertheKyotoProtocolandItsSpillover:Consequencesof“CarbonPanic.”CentreforEconomicPolicyResearchVoxEU.16March.bWorldBank.2018.CarbonMarketsUndertheKyotoProtocol:LessonsLearnedforBuildinganInternationalCarbonMarketUndertheParisAgreement.Washington,DC.cEllenMacarthurFoundation.2016.TheNewPlasticsEconomy:RethinkingtheFutureofPlastics.IsleofWight.23EPRIndonesia.TheLegalFrameworkinIndonesia.EPRinIndonesianLaw.24Verra.2023.FiveThingsYouShouldKnowaboutPlasticCredits.25E.SimonandE.Martin.2021.PuttingtheCredibleinPlasticCrediting.WWF.28January.8AddressingPlasticPollutionforClimateBenefits(ii)Standardizingmethodologies.ADBcansupportaplasticEffortsforthedigitalizationofwastecreditsystemthatfacilitatesstandardizedtrackingandmanagementhavebeenongoingaccreditationofplasticcollectionandrecyclingefforts.aspartofADB’stechnicalassistanceThesesystemsallowindependentauditstomeasuretheonplasticpollutionreduction.actualreductionofplasticwaste.Forexample,Verra,acarboncreditregistrywhichoperatesanumberofrecyclinginfrastructure(footnote21).Plasticcreditscanenvironmentalstandards,hastwotypesofsystemsfortheirthushelpbridgethefinancialgapforgovernmentsinplasticcredits:WasteCollectionCreditsforprojectsthatmanagingplasticwasteuntilfullyfunctionalEPRschemesdisposeofcollectedplasticwasteinawaythatpreventsaredeveloped,andcreditsystemscanpotentiallyprovideenvironmentalleakage,andWasteRecyclingCreditsforanimmediatemarket-basedstrategytoaddresssolidwasteprojectsthatuserecycledplasticasasubstituteforvirginmismanagementandpromotecircularity.30plastic(footnote24).Throughthepurchaseofcredits,fundsaregeneratedtosupportcollectionandrecyclingprojects.26(v)Providingopportunitiesforpovertyalleviation.CreditingVerra’smethodologyhasalreadybeenusedinprojectsacrossmechanismscanalsoimprovethelivelihoodsandworkingthedevelopingworldwherefinancingismostneeded,andconditionsofinformalwasteworkersandwomen.SalesseveralprojectsinAsiahaveadopteditsstandards.derivedfrominformalwastesectoractivitiescreateopportunitiesforpovertyalleviation.Thus,theeffectiveness(iii)Scalingupearlyplasticcreditmodels.ADBcanscaleupofthesecreditsystemsisexpectedtobehigherinregionsearlyregionalplasticcreditschemesinlinewiththeGPTwheretheinformalsectoriswell-organizedandsupplygoals.PlasticCreditExchange(PCX)inthePhilippineschainsareformalized.31Creditschemescanalsobeutilizedisaplasticoffsetplatformthatfacilitatescreditingpost-topromotewomenempowermentandaddressgenderconsumerplasticsusingthePlasticPollutionReductiondisparitiesintheinformalwastemanagementsystemStandardasaverifiableplasticcreditandcertification(footnote21).InthePhilippines,forexample,PCXissystem.InThailand,SecondLife,asocialenterprisesupportingFriendsofHope,Inc.(FOH)operateawaste–focusedoncircularplasticwastesupplychains,releasedto–cashinitiativecalled“AlingTindera”thatempowersVerra-certifiedplasticcreditsthatworktoenhanceplasticfemalemicroentrepreneurswithresourcesandtrainingwastecollectionandrecyclinginremotecoastalandtocollectandpurchaseplasticwastethattheycansellislandcommunities.27RevenuefromsuchplasticcreditstoFOH(footnote21).Overall,plasticcreditsystemscanincentivizeswastecollection,sortingcollectedfishingnetsdriveinvestmentsininfrastructureaimedatrectifyingforrecycling,andtraining.28InIndonesia,Reciki’sPlasticdeficienciesinlocalwastemanagementandrecyclingWasteValorizationProjectcollects,sorts,andmechanicallysystems(footnote31).recyclesorreusesplasticwasteinEastJavaandBali.29EffectivelyimplementingtheseearlymodelsofcreditDigitalandHigh-LevelTechnologySolutionsmechanismscouldprovideimmediatefinancingsupportinforPlasticWasteManagementlinewiththeGPT.(i)Digitalsolutionsforcirculareconomy.ADBiscommitted(iv)Bridgingfinancegaps.Plasticcreditshavethepotentialtotosupportingdigitalandhigh-leveltechnologysolutionsenhancetheeffectivenessofEPRschemes.Thesecreditstoenableacirculareconomyforplastics.Theseincludeaimtoattractinvestmentstoestablishandexpandplastichigh-leveltechnologyprojectsthatprevent,reduce,collect,wastecollectionandrecyclingactivities.Byrecognizingrecycle,andcleanupplasticwaste,enhancingthevalueplasticcreditswithinnationalEPRschemes,progresstowardchainofplasticwastemanagement.AswinneroftheADBregionalgoalsforplasticwastecollectionandrecyclingcanInnovationHub’sHealthyOceansTechnologyInnovationbeaccelerated.CompaniesobligatedtocomplywithEPRChallengein2022,ADBprovidedagranttoAlner(formerlyrequirementscanuseplasticcreditstopayforEPRfeesKoinpack)foratechnology-enableddeposit–returnrefillinginstead.ThePhilippinesprovidessomeinsightsontheroleofsystem.BasedinIndonesia,AlnerallowscustomerscreditswithinEPRframeworks,ascreditingallowsbusinessestomeetEPRprogramrequirements.ThroughcreditschemessuchasPCX,enterprisesareincentivizedtodevelopmore26T.Zinnes.2021.YourRoadmaptotheGlobalPlasticCreditMarket.PlasticCollective.19March.27Verra.2022.VerraIssuesFirstPlasticWasteReductionCredits.24March.28Verra.PlasticWasteReductionStandard.SecondLifeThailand.29EPRIndonesia.2023.BusinessOpportunitywithintheImplementationofEPRSchemeinIndonesia.21February.30UnitedNationsEnvironmentProgramme.2023.AssessingtheContributionofPlasticCreditSchemestoReducingPlasticsPollutionandImprovingRecycling.WorkingPaper-ExecutiveSummary.Nairobi.31EllenMacarthurFoundation.2016.TheNewPlasticsEconomy:RethinkingtheFutureofPlastics.IsleofWight.9ADBBRIEFSNO.284tobuytheirpreferredbrandsinreusablebottlesinsteadtheinformalsector,improvinglivelihoods,andreducingpoverty.ofsingle-usesachets.32ThegrantisintendedtoscaleupRobustEPRsystemsandplasticcreditslinkedwithdigitalsolutionstheirtechnologyandboostcapacitythroughtheexpansioncancreatefurtheropportunitiestouplifttheinformalsectorwithofstandardreusablepackagedesignsandsoftwareappropriatesocialsafeguardsinplace.ThiswillsupporttheGPT'sdevelopment.visionofajusttransition(footnote33).(ii)Technologyroadmapstoreduceplasticpollution.ADBBuildingtheNextGenerationofInvestmentscansupportdigitalroadmapstoimprovethedigitalizationthroughSovereignandPrivateSectorLendingoftheplasticwastemanagementsystem.EffortsforthedigitalizationofwastemanagementhavebeenongoingSupportingthedevelopmentofgovernanceframeworks.aspartofADB’stechnicalassistanceonplasticpollutionSovereignlendingplaysavitalroleinthesuccessfulreduction.TheinitiativeincludesscreeningandtestingimplementationofGPT.Ascountriesaimtocomplywiththedigitalsolutions,establishingdatagovernanceprotocols,andGPT'srequirementsanddevelopNAPs,theyarelikelytoestablishcreatingaPlasticManagementOpenDataPlatform.Anothergovernancesystemsrequiringpolicyandinstitutionalreform.solutionbeingexploredisanapp-basedblockchainsystemTofulfilltheirobligations,ADBcansupportgovernmentstothatcapturesandverifiesrecycledplasticvolumesfromestablishenablingframeworksfortheGPTimplementation.theinformalsectortotheremanufacturer.ThisinitiativeForexample,policy-basedandsectoralloansmaybenecessaryisalsoconnectedtoplasticcreditsandinvolvestheuseoftospuractiononspecificpoliciessuchasEPRandneworrevisedcommunityandMSMEappstosupportplasticcreditsandnationalstandardsorregulationsforplasticsinaccordwithcomplianceactivitiesinpreparationfortheimplementationtheGPT.ofcontrolmeasuresundertheGPT.LeveragingADB’sfinancingfacilities.ADB’sexistingfinancingADB’sFinancingRolefacilitiescanprovideprojectpreparationsupportthroughtechnicalassistance,aligningwithgreenandblueprojectcriteria,SupportingafinancesystemfortheGlobalPlasticsTreatyandpoolingpublicandprivatesectorfunds.DMCswillneedtoimplementation.ADBcansupportthedevelopmentoffinanceaccessfinancingtomeettheirGPTobligations,whichmayinvolvesystemsthatwillimplementcoreelementsoftheGPT.Thecreatingnational-levelmanagementplans.ADBcanleverageitsGPTpresentsopportunitiestopromotewastemanagementinitiativesliketheBlueSoutheastAsia(SEA)FinanceHub,Blueapproaches,includingEPR,plasticcredits,anddigitalsolutions.PacificFinanceHub,theASEANCatalyticGreenFinanceFacility,ThesetoolsofferflexibilityinmeetingcountryobligationstoandSMEBlueImpactAsiatofacilitatecompliancewiththeGPT'saddressplasticpollutionandcanalsobeintegratedasvoluntaryrequirements,withoutprecludingfurthermechanismsthatmaybeinitiativesasastartingpoint.RecognizingtheneedtoaccesstappedbyDMCs.furtherfinancing,thesemechanismsarekeytomobilizingfundsindevelopingcountries.MultilateraldevelopmentbankswillbeAttractingprivatesectorinvestment.ADBcanleveragetheGPTinstrumentalinattractinginvestmentstoaddressplasticpollutiontoattractmoreprivatesectorloans.Privatesectorinvestmentthatalignswithglobal,regional,andnationalgoals.33playsacriticalroleinaddressingplasticpollution.However,itiscurrentlydifficulttoattractinvestmentduetothelackofviableUpholdingsafeguards.ADBmustensureenvironmentalandbusinesscasesandincentives.ADBoperationscanassistinthesocialsafeguardsareupheldasGPTobligationsareimplemented.identification,preparation,andimplementationofgovernmentandThisisparticularlyrelevanttoalleviatingworkingconditionsinprivatesectoractionsandinvestmentsaimedatreducingmarineplasticpollutionundertheGPT(footnote33).ADBoperationscanassistintheBlueloanstowardcirculareconomy.Investmentsintheprivateidentification,preparation,andsectorcanbesupportedthroughblueloans.ADBhasissuedimplementationofgovernmentandseveralblueloanstosupporttheexpansionofpolyethyleneprivatesectoractionsandinvestmentsterephthalate(PET)recyclingcapacity,includingIndoramaaimedatreducingmarineplasticVenturesGroup(IVG)forPETrecyclingexpansioninIndia,pollutionundertheGPT.Indonesia,thePhilippines,andThailand.34ThisaimstopromoteacirculareconomyforrecycledPETandimplementindustrybestpracticesinADB’sDMCs.AloanwasalsoapprovedtoPTALBATridiPlasticsRecyclingIndonesia,anALBAGroupAsiacompany,toestablishaPETrecyclingfacilityinCentralJava,showingADB’s32Alner.https://www.alner.id/.33Verra.TheRoleofPlasticCreditFinanceintheGlobalPlasticTreaty.34ADB.2020.ADB,IndoramaVenturesSign$100MillionBlueLoantoBoostRecycling,ReduceOceanPlasticWaste.Newsrelease.24November.10AddressingPlasticPollutionforClimateBenefitscommitmenttoincreasingfinancinginthesector.35SuchloansalsoCONCLUSIONcontributetothegoalsofADB’sActionPlanforHealthyOceansandSustainableBlueEconomies.Toaddresstheescalatingproblemofplasticpollutionanditscontributiontoclimatechange,decisiveactionmustbetakenatEnhancingcriteriaforinvestments.Privatesectorprojecteverystageoftheplasticlifecycle.Thisresponsibilityextendstoassessmentcriteriaandenvironmentalduediligencemustbeallsectorsofsociety,includingnationalgovernments,civilsociety,enhancedtoprepareforGPTimplementation.Projectsmusthaveconsumers,businesses,andtheinformalsectoracrosstheplasticappropriatestandardsthatincorporateenvironmentalandsocialvaluechain.safeguardrequirementsandactivitiesthateffectivelymitigateclimateimpactsandsocialrisksacrosstheplasticvaluechain.However,whilethecostsandconsequencesofplasticADB’sOceanFinanceFrameworkcouldprovideoperationalpollutionandclimatechangearebornebyall,theirimpactsdirectioninthisregard,asitoutlinesatypologyofblueeconomydisproportionatelyaffectindividualsinthemostimpoverishedsectorsalongsidelimitationsandboundaries.Theframeworkcountries,manyofwhichareinAsiaandthePacific.ThisnotonlyalsocoverspollutioncontrolandcirculareconomyprojectsandunderminesglobalclimategoalsbutalsoexacerbatesinequalitiesprovidesspecificguidanceonADBcriteriaforinvestments.36inmarginalizedcommunities,whichbearthebruntoftheproblem.SupportinginvestmentstowardtheParisAgreementandGPTHarmonizingfinancestandards.ADBandothermultilateralgoalswouldfacilitateaninclusivetransitionoftheinformalsectorspartnerscanconsiderdevelopingamethodologyforfinanceofsocietyandcontributetopovertyalleviation.thatalignswiththerequirementsofGPT.Currently,therearenostandardizedandinstitutionalizedframeworksforpolicytoolsandSustainablefinanceiskeytofacilitatingpolicyreform,developmentfinancingmechanismssuchasEPRandplasticcredits,aswellasprojects,andtechnologiestoadvancecirculareconomysolutions,plasticwastemanagementsolutionssuchasdigitization.ThereimplementingtheGPT,andaddressingclimatechange.ForAsiaisanopportunityforADBtoworkwithpartnerstoharmonizeandthePacific,ADBstandsreadytosupportinvestmentstowardstandardsforfinance,capacitybuilding,andothermeansofajusttransitionforallandachieveglobal,regional,andnationalimplementationtowardtheGPT'sgoals.climateandplasticpollutionreductionambitions.35ADB.2023.ADBSigns$44.2MillionBlueLoanwithALBAtoReduceOceanPlasticWasteinIndonesia.Newsrelease.6June.36M.Walsh,D.Robertson,andA.Mehta.2020.TheRoleofOceanFinanceinTransitioningtoaBlueEconomyinAsiaandthePacific.DevelopmentAsia.8June.AbouttheAsianDevelopmentBankTheviewsexpressedinthispublicationarethoseoftheauthorsanddonotADBiscommittedtoachievingaprosperous,inclusive,resilient,andnecessarilyreflecttheviewsandpoliciesofADBoritsBoardofGovernorssustainableAsiaandthePacific,whilesustainingitseffortstoeradicateorthegovernmentstheyrepresent.ADBdoesnotguaranteetheaccuracyextremepoverty.Establishedin1966,itisownedby68members—ofthedataincludedhereandacceptsnoresponsibilityforanyconsequence49fromtheregion.Itsmaininstrumentsforhelpingitsdevelopingmemberoftheiruse.Thementionofspecificcompaniesorproductsofmanufacturerscountriesarepolicydialogue,loans,equityinvestments,guarantees,grants,doesnotimplythattheyareendorsedorrecommendedbyADBinpreferenceandtechnicalassistance.toothersofasimilarnaturethatarenotmentioned.Bymakinganydesignationoforreferencetoaparticularterritoryorgeographicarea,orbyusingthetermADBBriefsarebasedonpapersornotespreparedbyADBstaffandtheir“country”inthispublication,ADBdoesnotintendtomakeanyjudgmentsasresourcepersons.Theseriesisdesignedtoprovideconcise,nontechnicaltothelegalorotherstatusofanyterritoryorarea.accountsofpolicyissuesoftopicalinterest,withaviewtofacilitatinginformeddebate.TheDepartmentofCommunicationsandKnowledgeManagementAsianDevelopmentBankadministerstheseries.6ADBAvenue,MandaluyongCity1550MetroManila,Philippineswww.adb.org/publications/series/adb-briefswww.adb.orgCreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO)©2023ADB.TheCClicensedoesnotapplytonon-ADBcopyrightmaterialsinthispublication.https://www.adb.org/terms-use#openaccesshttp://www.adb.org/publications/corrigendapubsmarketing@adb.org11

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