Prioritizing collaboration over compulsion
To achieve lasting change, the instrument must provide mechanisms to unlock financial support for waste management infrastructure and innovation. With an estimated $2.1 trillion needed by 2040 to eliminate plastic leakage into the environment, it is imperative that we look for innovative ways to mobilize capital from a diverse range of sources. Every dollar of capital committed to the right project can potentially catalyze ten times that amount from larger institutions.
Every dollar of capital committed to the right project can potentially catalyze ten times that amount from larger institutions.
The Alliance to End Plastic Waste has direct experience of this. To provide just one example, we made a critical loan to a women-led social enterprise in Indonesia that allowed it to navigate equity requirements and to secure a $44.9 million Asian Development Bank loan to develop a bottle-to-bottle recycling plant in Java.
Our work on the ground has demonstrated the significant potential of coordinated action and a systems-based approach. For example, by providing our technical expertise and financial support to the ASASE Foundation — a Ghana-based social enterprise that supports women entrepreneurs in managing plastic waste collection and recycling businesses — the foundation successfully developed a functional system and became a recipient of the World Bank’s Plastic Waste Reduction-Linked Bond. The bond provides investors with a financial return linked to plastic and carbon credits expected to be generated, allowing the ASASE Foundation to benefit from financing that significantly exceeds our initial investment.
In developed countries, where we are more focused on addressing plastic waste through technology, a coordinated approach has also been pivotal to progress. HolyGrail 2.0, a digital watermarking technology that we support, is a good example of this. The imperceptible codes contained in the watermarks and printed on plastic packaging carry information about the material and can be detected by high resolution cameras in sorting facilities to increase sorting accuracy and improve the quality of material bound for recycling. The project has involved significant collaboration across the plastics value chain, involving technology providers, sorting facilities, brands and governments, enabling the technology to be successfully proven in a series of industrial trials in Europe.
Reliable and consistent definitions and reporting metrics, both heavily discussed at the Intergovernmental Negotiating Committee sessions, are fundamental to the future instrument’s long-term and lasting impact. These will not only establish how much plastic is used, its purpose, the levels of waste and where it ends up, but also allow businesses and governments to develop the most impactful responses and introduce accountability.
