300 million tonnes of new plastic are created every year.
If we continue plastic production at our current rate, this figure is highly likely to increase by 60% by 2030 and treble by 2050 (International Union for Conservation of Nature, 2020).
90% of the plastic produced is manufactured using fossil fuels, oil and gas (Plastics Atlas in 2019). Approximately half of these plastics are designed as ‘single-use plastics’ (UNEP 2018, WWF 2018).
The sheer amount of plastics we have amassed that cannot be processed or reused indicates a massively flawed and unsustainable system. The continued destructive process of plastic production also raises a multitude of issues, two of which we would like to primarily address:
1. We have amassed far too much pollutive plastic materials through a pollutive production process - we cannot remove or recycle many single-use plastics which are now a threat to our planet, ecosystems and communities.
One tonne of plastic produced can generate up to 2.5 tonnes of CO2 emissions.
When you scale this up to a global level, it is clear that plastic production is destined to destroy the natural world if no effective policies and measures are in place to mitigate this (Materials Economics 2018).
Countries without a well-functioning plastic recycling system or the accompanying regulations are the ones to suffer the most from the gradually-increasing plastic pollution.
Low-income communities, particularly those who live near plastic production sites, encounter large health risks as they face higher levels of toxin exposure and improper disposal of plastic waste. These health risks can cause irreversible damage physiologically and environmentally, damaging both flora and fauna alike. These harmful activities have also been linked to large economic losses in these regions (Greenpeace in 2018).
Plastic pollution harms not only the terrestrial environment, but the ocean. Every year, around 4 billion plastic microfibers per square kilometre pollute the sea. 12 million tonnes of plastic are poured into the ocean, 80% of which is debris, according to the UK’s Condor Ferries investigation report in 2020 and 2021.
Marine life is severely threatened due to plastic pollution; 100% of baby sea turtles are found to have plastics in their stomach and more than 1 million seabirds and 100 thousand marine animals die yearly due to plastic pollution, through toxicity and asphyxiation (Condor Ferries 2021).
2. The so-called “new-generation plastics” or biodegradable plastics, have never been so urgently needed to counter this costly and destructive production of plastics.
Currently, 80 to 120 billion USD is lost annually through the process of manufacturing and disposing of plastic packaging material.
The silver lining to this tragedy is that this loss has contributed to increased awareness of the dangers of plastic pollution among both businesses and investors, pushing innovative and sustainable business models that support a circular economy forward.
Within the stages of the plastics value chain (from material engineering all the way through to repurposing), many innovations are related to trading plastic wastes via digitized software applications (e.g. Geographic Information System (GIS) mapping, E-wallet rewarding systems) and online platforms. These applications commonly use economic incentives for their users, which in return have helped to establish larger and more valuable plastic waste collection networks at both community and regional levels.
With more than sixty organizations, start-ups and businesses applying digitized applications to solve plastic pollutants being discovered globally, many newly-established start-ups in India (Kabadiwalla Connect), Kenya (Mr. Green Trading Africa), and Ghana (Coliba) are no longer fighting against plastic pollution on their own.
These SMEs engage local individuals and the informal sector to participate in this long race by providing a sustained source of plastic wastes supply, and connect with FMCGs to produce pellets-made recycled products not only for the sake of Extended Producer Responsibility but for a greater welfare that may be redistributed to the whole of society.
We need to grow a more consolidated and trustworthy investor-investee ecosystem to reach the goal of net-zero plastic waste.
As there is an observable trend showing such sustainable business models are growing in various developing countries, an immeasurable amount of investable opportunities and market share remain untapped. Many enthusiastic entrepreneurs do not engage proactively with investors to help expand their social and environmental impacts, even if they are potentially capable of providing financial returns for investors.
In order to boost growth and stimulate transformation at a regional level, a more consolidated and trustworthy investor-investee business ecosystem should be constructed to better reach the goal of net-zero plastic waste. International cooperation is also vital in achieving this goal. Mr. Green Africa, through international cooperation such as their partnership with Unilever, has been working to review the entire end to supply chain in order to produce plastic recycling that is not only recycled, but recyclable once it has reached the ‘final’ user, further aiding global efforts to reach net zero plastic waste.
Breaking free from plastic dependency and its pollution is vital for sustainable development.
Though the world may never be entirely plastic free, as we have simply amassed far too much, we are moving towards a future where far less plastic is produced, and the plastic that is left in our society is fit to be repurposed at a smaller fiscal and environmental cost to future generations.
Author: Steven Chen
Co-Author: Charlotte Macdonald
Editor(s): Neil Sandy
Wellers Impact is a UK-based, FCA-Regulated Impact Investment Manager which works to unlock community-focused impact through SDG-focused impact investing. Through innovative investment models that utilise fair economics, Wellers Impact originates investment opportunities across three core business activities; real estate developments in partnership with local land-owning not-for-profits in East Africa, financial support for agriculture firms and supply chains globally through sustainable development finance and direct investment into private water, sanitation and plastics recycling firms globally. Investment involves risk. Suitable for Sophisticated, Professional and High Net Worth Investors only.
References
Condor Ferries. 2021. 100+ Plastic in the Ocean Statistics & Facts (2020-2021). [online] Available at: <https://www.condorferries.co.uk/plastic-in-the-ocean-statistics>.
Farmer, M., 2020. Unilever EA and Mr Green Africa close plastic recycling loop. [Blog] Packaging Gateway, Available at: <https://www.packaging-gateway.com/news/unilever-green-africa-recyclable-recycled/>.
IUCN. 2021. Marine plastics. [online] Available at: <https://www.iucn.org/resources/issues-briefs/marine-plastics>.
Materials Economics, 2018. Sustainable Packaging - The Role of Materials Substitution. [online] Stockholm: Materials Economics. Available at: <https://materialeconomics.com/publications/sustainable-packaging>.
UNEP. 2021. Our planet is drowning in plastic pollution—it's time for change!. [online] Available at: <https://www.unep.org/interactive/beat-plastic-pollution/>.
World Wildlife Fund. 2018. Plastics | Initiatives | WWF. [online] Available at: <https://www.worldwildlife.org/initiatives/plastics>.