How collaboration among competitors can help tackle plastic pollution

In November 2024, the eyes of the world turned to a meeting in Busan, South Korea, in the hope that states would agree on tackling plastic pollution. Unfortunately, the result was far from what was desired, and consensus on a legally binding global treaty for plastic pollution wasn’t reached.

There have been several analyses of why the plastics agreement failed. However, progress must be made at the national level while continuing to push the treaty forward. Collaboration among competitors is the key to this.

The plastic value chain requires such a plastic treaty. The Business Coalition for a Global Plastics Treaty and the voluntary actions of organizations around the world are evidence hereof. We need a production and consumption model that allows economic development without compromising the planet’s future. The United Nations Environment Programme (UNEP) estimates that between $130 billion to $200 billion per year could be saved through a circular economy in plastics.

A concrete example of how this is possible is in the household and personal care products market, where collaboration is driving reuse schemes. In 2023, Mercado Circular, a Chilean tech company that creates reuse solutions supported by software and refilling machines, partnered with P&G to transform part of its portfolio in Mexico. Plans are underway to open 25 to 30 new points of sale by March 2025. Others like Carrefour and Walmart have been developing multiple pilots with market-disruptors like Loop and Algramo to achieve reuse goals this year.

This progress is still minimal, and problematic or unnecessary plastic packing is a major reality in all countries. Over 460 million tons of plastic will be produced in 2024, with over 70% hereof mismanaged or sent to landfills. The Ellen MacArthur Foundation found that virgin plastic use has increased by 11% since 2018. Goodwill isn't enough.

We must agree on definitions and establish standards that are shared among industry players. What do we mean by “problematic” plastics? Or what are the rules to implement Extended Producer Responsibility (EPR) schemes?

Success requires collaboration among competitors – getting them to sit at the same table isn’t always easy and shouldn’t be seen as collusion. This can only be done through clear legislation which, in turn, will depend on the public agenda of each country. Unfortunately, many countries don’t have environmental concerns at the heart of their priorities. Is there a midway that can be found?

Chile is at the forefront of plastics legislation in Latin America. Central hereto has been its Clean Production Agreements (APL). These are voluntary public-private agreements between a business sector and the organs of state to contribute to the sustainable development of companies through specific goals and actions.

APL has implemented the eco-labelling of packing since 2020. Chile has no restrictions on defining packages as recyclable, which led to greenwashing and disruptions of the recycling value chain. This APL, however, allowed the development of a recyclability seal where competitors agreed to comply with requirements in the design of their packaging. The initiative has seen over 70 organizations participate and more than 179,000 tons of packing products receive the seal. The seal is managed by Collective Management Systems, which is able to track and point out which products are actually being recycled.

Today, APLs are recognized by law. However, signatories are free to move forward without additional legislative procedures. Most interestingly, a methodology has been developed that prevents obfuscation and tackles free riders.

In the spirit of the APLs, the Chilean Plastic Pact has brought together the entire plastics value chain through concrete goals to reduce plastic pollution. The initiative is part of the global Plastics Pact Network, which connects national and regional initiatives to implement solutions towards a circular plastics economy. The novelty of the Chilean case is that it is led by Fundación Chile, a public-private corporation, together with the Ministry of Environment. This partnership has made it possible to broaden the scope of initiatives and have civil society participate as active collaborators.

One of the highlights of 2024 was the implementation of a pilot to strengthen grassroots recyclers in San Antonio, a coastal city in central Chile. The project involved the participation of a cooperative of recyclers, the local government and four companies (Inproplas, Cambiaso, Soprole and Nestlé) to collect and valorize new plastic streams such as flexibles and polystyrene (PS) packing. The model changes the business logic by paying recyclers for both the material collected and the hours spent on the project.

With the support of Latitud Sur, grassroots recyclers were trained to conduct workshops in educational establishments. To date, over 300 students and teachers have been trained in the plastic recycling process. This has generated a virtuous relationship with the families in the area and showcases the effective implementation of the ERP scheme with the municipalities.