Finance Firms Call for Global Treaty on Plastic Pollution Ahead of Ottawa Talks

160 finance companies are urging governments worldwide to adopt a binding international treaty to combat plastic pollution. This call comes as global leaders prepare for the fourth meeting of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-4) in Ottawa, Canada, next week, aiming to lay the groundwork for a formal agreement by year-end.

Legal & General Investment Management from the UK and Canada’s pension investor CDPQ are among the influential financial institutions advocating for a robust policy framework to tackle the escalating crisis of plastic waste, which is estimated at 400 million metric tons annually. This waste not only threatens biodiversity but has permeated environments as remote as the Himalayas and as personal as human blood.

The proposed treaty, inspired by the Paris climate agreement and the Kunming-Montreal global biodiversity framework, seeks to align both public and private financial flows with the goal of eradicating plastic pollution. Additionally, the finance sector is calling for mandatory corporate assessments and disclosures of plastic-related risks and opportunities, clearer government policies on waste creation and recycling, and increased private investments towards ending plastic pollution.

Anne-Sophie Castelnau, global head of sustainability at ING, emphasized the treaty’s potential to mobilize substantial finance for combating plastic pollution globally. “A clear transition pathway laid out in the Treaty will help leverage finance at scale for this massive task,” she stated.

The support from the financial sector also highlights the need for more innovative financial solutions to advance the plastic reduction agenda. Steve Hardman, CEO of Plastic Collective, noted the creation of the world’s first plastic waste reduction bond by Citi and the World Bank as a pioneering example. This $100 million bond finances projects in Ghana and Indonesia, with returns linked to the success of plastic removal efforts.

As the Ottawa talks approach, the global finance community remains optimistic that a new treaty will catalyze the necessary actions and investments to significantly reduce plastic pollution, preserving ecosystems and enhancing global health.