Run-up to Ottawa: New study shows how global plastic waste trade evolved recently & ways for responsible management

The global trade in plastic waste is a multifaceted issue that has captured the attention of policymakers, environmentalists and industry stakeholders. Ahead of the fourth session of the Intergovernmental Negotiating Committee (INC-4) in Ottawa, a new study delves into the intricacies of this trade, shedding light on evolving patterns, regulatory shifts and challenges faced in managing plastic waste on a global scale.

In recent years, the volume of plastic waste traded globally has undergone significant fluctuations. The study Monitoring trade in plastic waste and scrap revealed a notable decline in the overall export volume of plastic scrap and waste, dropping by almost half over a six-year period to 6.3 Mt in 2022 from around 12.4 million tonnes (Mt) in 2017. This decline has been attributed to various factors, including tightened import restrictions in key destination countries and adjustments to new international trade rules.

One of the most significant shifts in the global plastic waste trade landscape has been the decline in exports to China and Hong Kong, which historically received a substantial share of the world’s plastic waste.

The implementation of China’s ‘National Sword’ policy in 2018, which imposed stricter import restrictions, led to a dramatic reduction in imports from these countries. By 2022, exports to China and Hong Kong accounted for only 1.1 per cent of the global volume traded, highlighting a significant shift in trade dynamics.

Conversely, the study identified a rise in the share of plastic waste exported to European countries, including intra-European Union trade. This trend underscored a shifting pattern of trade flows, with European nations increasingly becoming destinations for plastic waste exports. 

Importantly, while exports to European countries have increased steadily, imports by non-OECD countries, particularly in Southeast Asia, have experienced a decline. This trend reflected the impact of tightened national controls and regulatory measures on plastic waste trade flows.

Furthermore, the study highlighted the evolving trade balance within OECD, with member countries shifting from being net exporters to having a more neutral trade balance. While exports from OECD countries have continued to decrease, imports have shown a slight increase, leading to a more balanced trade scenario. The share of OECD exports as a proportion of total global volume has remained stable, indicating a consistent presence in the global plastic waste trade landscape.

To analyse trade patterns at a more granular level, the study explores the composition of plastic waste traded under various Harmonised System codes. The findings showed that while the overall volume of plastic waste traded has declined, there has been a relatively stable composition in terms of polymer types. Ethylene polymers (HS 391510) continue to comprise the largest share of plastic waste exports by OECD countries, followed by styrene polymers (HS 391520) and vinyl chloride polymers (HS 391530). 

Additionally, the ‘catch-all’ category (HS 391590), which includes various types of plastic waste, remains a significant component of global plastic waste trade.

However, the study also raised concerns about the potential underreporting of plastic waste trade, particularly under the Basel Convention. Despite efforts to regulate plastic waste trade through international agreements, such as the Basel Convention’s amendments, challenges persist in ensuring comprehensive reporting and compliance. 

The study highlighted discrepancies between trade data reported to the United Nations Comtrade and national reports submitted to the Basel Secretariat, suggesting gaps in reporting and enforcement mechanisms.

Moreover, the emergence of alternative trade routes under different HS codes poses additional challenges to monitoring and regulating plastic waste trade effectively. The study identifies a significant increase in exports of residual products (HS 3825), such as refuse-derived fuels (RDF), which are used for incineration with energy recovery. This trend raises questions about the extent to which plastic waste trade may be circumventing regulatory controls and underscores the need for enhanced monitoring and oversight.

In conclusion, the study offered valuable insights into the complexities of global plastic waste trade and the challenges associated with its management. Addressing these challenges requires a concerted effort from all stakeholders, including governments, industry players and civil society organisations. 

Collaboration, transparency and sustainable waste management practices are essential for navigating the complexities of plastic waste trade and working towards a more sustainable and responsible approach to managing plastic waste on a global scale. By prioritising these principles, we can collectively strive towards a future where plastic waste is managed responsibly, mitigating environmental harm and promoting a circular economy mindset.

The ongoing Global Plastic Treaty negotiations also have a provision that talks about trade. It is divided into two components: One is the trade of raw materials, precursors, primary plastic polymers. The other is plastic waste.

A handful of member states like Russia, India, China, Iran and Gulf Cooperation countries have outright rejected the inclusion of this provision in the final text for both raw materials and waste.

It is important to not duplicate the obligations from Basel Convention in the global plastic treaty. However, since trade of raw materials and plastic products is outside the scope of the convention, the provision on trade should be retained and discussed at length during the Global Plastic Treaty negotiations.

As policymakers convene for INC-4 in Ottawa, armed with these insights, the imperative of collaborative action and regulatory coherence becomes abundantly clear. Only through concerted international endeavours, underpinned by data transparency, regulatory harmonisation and cross-sectoral cooperation can we hope to navigate the complex web of challenges posed by plastic pollution and chart a course towards a more resilient and sustainable future for generations to come.

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