By Mike Jones, Head of Innovation and Global General Manager of Intelligent Solutions at Mainetti
This imbalance highlights a simple reality: local efforts cannot deliver circularity alone. To close the loop, governments must align on enforceable, globally applicable measures connecting worldwide production, recycling and waste management. Only through such collaboration can we tackle the overproduction of virgin plastic, mitigate waste, and create a globally operating circular economy — a topic we cover extensively in EBM’s Sustainability section.
World leaders delay breakthrough at Geneva
The production of virgin plastic is deeply tied to fossil fuels. The Centre for International Environment Law (CIEL) reports that more than 99% of plastics are made from fossil fuel-derived chemicals, and plastics are projected to account for nearly half of the growth in oil demand by 2050. Reducing virgin plastic production is therefore critical to curbing fossil fuel consumption and advancing global climate goals.
In August 2025, 184 countries gathered in Geneva for the final round of the United Nation’s (UN) Intergovernmental Negotiating Committee (INC-5.2) talks. The aim was to agree upon a global plastics treaty to regulate plastic production. However, the debate ended without a consensus – the sixth impasse since 2022.
Over 100 nations known as the High Ambition Coalition – spearheaded by Rwanda and Norway, and supported by the European Union (EU) and several African states – supported binding virgin plastic limits. However, a smaller cohort called the Like-Minded Group – comprised of “petrostates” such as Saudi Arabia, Iran, Russia, and Cuba – called for a voluntary treaty where obligations addressed waste management only. With these two opposing camps, no agreement for reduction of plastic output or chemicals was formed.
Many delegates expressed their frustrations at the result. Several non-governmental organisations asserted that the standoff threatens public confidence in multilateral climate efforts, while a representative from the Pacific Island nations emphasised that continued delay threatens ecosystems and food security. Indeed, Tuvalu’s delegate stated that without a collective treaty, millions of tonnes of waste will continue to pollute the region’s waters every year. In addition, France’s minister for ecological transition, Agnès Pannier-Runacher, claimed that some nations were interested in quick financial gains over the planet’s long-term stability.
The result demonstrates that only through worldwide collaboration and enforceable climate regulations can we drive meaningful and lasting change where a circular economy is achieved on a global scale — a shift increasingly central to European policymaking.
The case for change – environmental and economic
The problems caused by the overproduction of virgin plastic are both environmental and financial in nature. For example, 19-23 million tonnes of plastic is dumped into marine ecosystems annually, as reported by the UN Environment Programme. Once discarded, plastic remains for centuries before it decomposes, polluting oceans and waterways for generations to come.
Human health is also compromised by plastic pollution. Carrying poisonous chemicals, ingestion of microplastics has been associated with respiratory problems and various cancers. Research from the Hull York Medical School revealed microplastics in almost all human lung samples investigated, while the WWF and the University of Newcastle found that the average person now consumes over five grams of microplastics weekly. To reduce the health risks linked to microplastic i
Finally, plastic is a significant driver of greenhouse gas emissions, releasing them at every stage of its lifecycle – from fossil fuel extraction and production to manufacturing, transport, use, and disposal. By 2050, the release of greenhouse gases associated with plastic could supply 10-13% of the globe’s carbon budget, as reported by CIEL. Increasing plastic recycling could significantly reduce the demand for virgin plastic, cutting related emissions by up to 42%.
The overproduction of plastic not only creates environmental problems, but economic ones too. Indeed, the Boston Consulting Group reports that the average return on capital employed for global petrochemical companies fell from 8% in 2019 to approximately 4% in 2024, with these organisations’ gross earnings dropping from 17% to 12%. It is therefore clear that the sector is currently pumping out more plastic than the market requires.
To mitigate this problem, the plastics industry must stabilise supply while spurring investment in recycling and innovation. By moving toward more circular practices, the plastics industry can not only create opportunities for the planet’s environmental health, but also the financial instability created by overproduction — themes intertwined with global business strategy.
Governments and businesses must collaborate to secure a sustainable future
Real progress requires collective action. Achieving a circular economy requires internationally aligned regulatory frameworks, while firms must take the lead by designing products with circularity at their core and delivering on tangible commitments to reduce virgin plastic production and use. For example, Mainetti supports the circular economy through its sustainable packaging services and solutions include its Polyloop recycling process for clear polythene films and Hangerloop™ circular solution for retail garment hangers.
While the Geneva talks showed how industrial pressure can stall policy advances – with reports that industry lobbyists outnumbered delegations from EU member states – the key is not to keep industry out, but to engage them in clear, transparent discussions where partnership is the goal, not polarisation. Successful examples already exist, such as the EU’s Circular Plastics Alliance which unites more than 300 companies towards the goal of incorporating 10 million tonnes of recovered plastics into products by 2025.
Looking ahead, the next round of negotiations must fill in the gaps left in Geneva. Production caps, chemicals restrictions, and financial support for waste infrastructure will be essential ingredients for long-term success – alongside a shared set of principles that resonate with all countries and industries.
By aligning on such measures, the environmental and economic benefits will be significant, from reduced environmental footprint to greater efficiency and revenue in business operations for the plastics industry itself. Through collective action on a global scale, innovation can drive the creation of a truly circular economy that benefits people, organisations, and the planet.
