Plastic wrap: curbing microplastics and promoting reuse models

Welcome to Plastic wrap, our bimonthly review of the science, policy and corporate activity pivotal in creating a circular plastics value chain.

The first close of our Plastic Circularity strategy expanded our limited partner (LP) base, with Dow and Lyondell Basell¹ among the initial investors to make commitments. Our technical advisor, the Alliance to End Plastic Waste, recently presented our approach to reimagining plastic waste in a workshop on catalysing capital at the Global Impact Investment Network Conference. By minimising waste and maximising reuse and replacement with alternatives, our strategy aims to transition to a circular model for a new plastics value chain.

Science

Microplastics: up in the air

The discovery of airborne microplastics confirms the extent to which the small particles are now widely present across the Earth. Japanese scientists analysed samples of cloud water at the summits of Mount Fuji and Mount Oyama and found nine types of microplastics.

Microplastics can harm living creatures and even potentially influence the climate, the researchers from several Japanese universities wrote in a paper in Environmental Chemistry Letters. Of special concern was that some of the microplastics they found at high altitude could influence cloud formation and, in turn, might modify the climate.

Fact-based research to inspire a Global Plastics Treaty

A report by Systemiq² for the Nordic Council of Ministers made 15 global policy recommendations to end plastic pollution. If universally adopted and supported by a set of common global rules that are legally binding, these policies could cut annual volumes of mismanaged plastic waste by 90% and virgin plastic use by 30% by 2040 relative to 2019 levels. The report also delved into the broader repercussions of plastic pollution, such as biodiversity threats, health risks, and the urgent need for a just transition, underlining the urgency of comprehensive, globally binding rules and collaboration to drive change.

Reusable packaging has the edge

Two studies have recently assessed the environmental performance of single-use packaging products versus multiple-use products and found that reusable packaging has the edge.

The Joint Research Center (JRC), the scientific arm of the European Commission conducted its analysis as part of a focus on reuse targets in the Packaging and Packaging Waste Regulation proposal. As the EU's scientific and knowledge service, the JRC plays a pivotal role in supporting evidence-based policymaking.

A different study by Zero Waste Europe, Reloop, and TOMRA also considered how reusable systems impact the climate compared to single-use takeaway packaging. It looked at the greenhouse gas (GHG) emissions associated with a wide range of common takeaway packaging, including cups, burger boxes, bowls, pizza boxes, and sushi containers. Reusable take-away packaging could present a compelling climate case over single-use alternatives if return and washing systems are properly implemented and optimised, the report said.

In nearly all the types of packaging it examined, the study showed that reusable packaging can significantly reduce GHG emissions compared to respective single-use plastic or paper containers. The only exception was pizza boxes, which will likely need further innovations in design to fully unlock the benefits of reuse.

Policy, regulation and disclosure

Drafting a Global Plastics Treaty

Last month, the United Nations unveiled the Zero draft text for a Global Plastics Treaty that will be a legally binding instrument to end plastic pollution. The draft text is designed to guide and support the Intergovernmental Negotiating Committee at its meeting in Nairobi, Kenya in November. A formal treaty is envisaged by the end of 2024.

The text addresses concerns raised by member states and presents multiple options. It outlines the common aspect(s) between options for particular elements in order to allow members to select or combine different choices based on their preferences.  

"The draft demonstrates that an impactful treaty is possible," said WWF. "It shows how global measures… can be formulated and provides clear suggestions for how they can be structured in the treaty."

Restricting microplastics

Using the EU chemical legislation, REACH, the EU Commission adopted measures to restrict microplastics that are intentionally added to products.

The new rules will prevent the release into the environment of about half a million tonnes of microplastics. They will prohibit the sale of: microplastics as such, products to which microplastics have been purposefully added, and products that release microplastics when used. When duly justified, derogations and transition periods for the affected parties to adjust to the new rules apply. The restriction uses a broad definition of microplastics to reduce emissions of intentional microplastics from as many products as possible.

Corporate activity³

Funding for waste management platforms, bio-based packaging and refill subscription services were highlights we have identified among recent announcements aligned with the themes of improved collection, sortation and recycling, innovative materials and new usage models.

Sources

[1] Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document.

[2]  Lombard Odier is a capital partner in Systemiq and recently announced a new partnership to build holistiQ Investment Partners (“holistiQ”), a platform within LOIM solely dedicated to sustainable investing

[3] Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document.

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