The UN Global Plastic Treaty Hits a Roadblock: What’s Next?

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The News: After nearly two years of negotiations, countries have failed to reach a consensus on a treaty to address the global plastic pollution crisis.

What Does the Delay of the Global Plastics Treaty Mean for Businesses?

The much-anticipated Global Plastics Treaty, designed to combat plastic pollution, has hit a significant roadblock. The treaty's goal is to regulate plastic across its entire lifecycle – from production to disposal. When finalised, it could introduce legally binding standards that would shape how industries worldwide manage production, sustainability, and waste.

This week, the UN’s Intergovernmental Negotiating Committee (INC-5) in South Korea postponed the final decision until 2025. As negotiators continue to tackle unresolved issues, including global commitments and financing mechanisms for developing nations, businesses will need to adjust to the uncertainty and prepare for the eventual impacts of the treaty’s framework.

Why It Matters

Plastic waste is a pressing issue, and while the treaty’s delay gives businesses more time, it doesn't eliminate the urgency to act. For companies, the treaty isn’t just an environmental challenge — it’s an evolving business reality. The agreement is expected to include measures to reduce plastic production, phase out harmful additives and increase recycling mandates. Businesses, especially those reliant on single-use plastics, must rethink their supply chains and innovate to keep pace.

The delay is a double-edged sword. While it offers businesses some breathing room, it also extends the period of uncertainty. Preparation remains necessary but the exact requirements are still unclear.

Implications for UK and EU Organisations

Heightened Regulation in the Future

The EU is already a leader in plastic regulation, with measures such as the Single-Use Plastics Directive and mandatory extended producer responsibility. As the treaty progresses, businesses can expect even greater regulatory alignment, particularly with the EU’s existing framework. The delay gives companies more time to plan for compliance, but stricter regulations are on the horizon.

Competitive Advantage for Early Movers

Companies that take a proactive stance — by investing in circular solutions or reducing plastic reliance now — will be better positioned when the treaty is finalised. First-movers are likely to capture consumer and investor confidence in a market that increasingly prioritises environmental, social and governance (ESG) factors. The reputation boost and operational readiness will give them a competitive edge.

Shifting to alternative materials or implementing circular systems may incur short-term costs. However, businesses that fail to prepare now could find themselves scrambling to adapt when regulations tighten. The risk of playing catch-up in an increasingly regulated market is a significant consideration.

Use This Time Wisely

The treaty delay is not a reason to delay action. Rather, it’s a crucial window for businesses to:

• Evaluate Their Footprint: Understand plastic use across the supply chain and identify opportunities for reduction or alternative materials.
• Build Stakeholder Coalitions: Engage with policymakers and industry groups to ensure practical implementation of treaty measures.
• Invest in Innovation: Early investment in biodegradable alternatives and better recycling infrastructure will be critical for future compliance and sustainability.

What Business Leaders Are Saying

Before the negotiations started, more than 20 CEOs from some of the world’s largest companies – including PepsiCo, Unilever, and Mars – called on governments to agree to global binding rules to address the issue of plastic pollution. After negotiations ended, the Coalition said that while consensus among all nations remains elusive, “we cannot afford this process sliding into unending negotiations”.

As the treaty’s path forward remains uncertain, businesses face a critical juncture. The delay provides some breathing space, but the urgency to act has never been more apparent. The risk of stalling on plastic pollution, as business leaders have noted, is too high for global well-being and corporate interests. Negotiators must overcome key challenges, including financing and national commitments, before the treaty can achieve meaningful impact. If the global community is to make a significant dent in plastic pollution, governments and businesses alike must keep their eyes on the long-term goals of sustainability, innovation, and cooperation.