The Cost Of Plastic Waste: A Global Crisis

Plastic waste is a growing concern for governments and businesses around the world. The cost of managing plastic waste is significant, with estimates suggesting it could cost governments up to USD 670 billion between 2021 and 2040. The economic impact of plastic waste is felt differently across countries, with low and middle-income countries bearing a higher cost per kilogram of plastic waste. The true cost of plastic waste is not just financial but also environmental, with marine plastic pollution causing losses of up to $2.5 trillion annually.

The cost of plastic waste management for governments

The cost of plastic waste management is a significant burden for governments around the world. The total cost to governments of managing plastic waste between 2021 and 2040 could reach up to USD 670 billion. The economic impact of plastic waste management is felt differently across countries, with the cost of plastic waste management in high-income countries being lower than in middle and lower-income countries. For example, the total lifetime cost for one kilogram block of plastic waste in a high-income country is US$19, compared to eight times that for middle and lower-income countries at an average of US$150, and ten times that for lower-income countries at US$200.

The cost of plastic waste management is not just financial but also environmental. Marine plastic pollution is responsible for a staggering annual loss of up to $2.5 trillion. In addition, plastic waste that ends up in the ocean impacts marine ecosystems, with costs of US$149 for low and middle-income countries compared to US$17 for high-income countries. The true impact of plastic pollution on low and middle-income countries is likely to be far greater.

The cost of plastic waste management is also a lost economic opportunity. For example, in Canada, 86% of plastic waste is funnelled into landfills, resulting in a loss of nearly $8 billion, expected to increase to over $11 billion by 2030. Similarly, the net cost burden of operating plastic waste management in the US is estimated at 660 million USD annually, mainly due to collection and sorting activities.

The cost of plastic waste management is a global issue, with countries in the Mediterranean seeing a 40% increase in marine litter during the summer months when they host over 200 million tourists each year. The economic losses in Europe due to marine litter are significant, with the EU fishing fleet losing 61.7 million euros each year. The town of Nice in France spends 2 million euros every year to keep its beaches litter-free for visitors.

The cost of plastic waste in high-income countries

The cost of plastic waste is a significant burden for high-income countries. For example, the net cost burden of operating plastic waste management in the US is estimated at 660 million USD annually, with the bulk of the cost stemming from collection and sorting activities. In Canada, 86% of plastic waste is funnelled into landfills, translating to a loss nearing $8 billion, anticipated to escalate to over $11 billion by 2030. In Toronto, litter costs over $27 million a year to collect and clean up, with the cost of the COVID-19 pandemic pushing this even higher.

The cost of plastic waste management is not just financial, but also environmental. Marine plastic pollution alone is responsible for a staggering annual loss of up to $2.5 trillion. In Europe, marine litter is estimated to cost the EU fishing fleet 61.7 million euros each year, with the town of Nice in France spending 2 million euros every year to ensure a plastic and litter-free beach for visitors.

The total lifetime cost for one kilogram block of plastic waste in a high-income country is US$19, compared to eight times that for middle and lower-income countries at an average of US$150, and 10 times that for lower-income countries, at US$200. This disparity is due to the higher cost of labour and infrastructure in high-income countries, as well as the fact that plastic waste in low and middle-income countries is often not properly managed, leading to greater environmental and health impacts.

The total cost to governments of managing plastic waste between 2021 and 2040 could reach up to USD 670bn, with the cost of inaction for businesses potentially reaching even higher.

The cost of plastic waste in middle and lower-income countries

Plastic waste is a global concern, with the total cost to governments of managing plastic waste between 2021 and 2040 potentially reaching up to USD 670 billion.

The cost of plastic waste is particularly high for middle and lower-income countries. A report commissioned by the WWF and developed by global consulting firm Dalberg found that the lifetime cost of a kilogram of plastic for low and middle-income countries is around $150, which is eight times the $19 incurred by wealthier nations. When comparing just low-income countries and their richer counterparts, the report argues the cost differential rises to 10 times, with low-income countries facing costs of $200 per kilogram.

The multiplier of eight and 10 is predominantly linked to the mismanagement of plastic waste and costs to the marine environment. Wealthier countries often displace and reduce their waste management costs by exporting their plastic waste to lower-income countries to process. This means that the true impact borne by low and middle-income countries from plastic pollution is likely to be far greater than the costs incurred by wealthier nations.

The WWF has called on all governments to agree on a treaty with harmonised, binding global rules that can remove inequities reinforced and exacerbated through our current take, make, and waste plastics system.

The cost of plastic waste in low-income countries

Plastic waste is a global problem, with a huge economic fallout. The total cost to governments of managing plastic waste between 2021 and 2040 could reach up to USD 670 billion.

The cost of plastic waste is disproportionately high for low-income countries. According to a report by WWF, the lifetime cost of a kilogram of plastic for low and middle-income countries is around $150, which is eight times the $19 incurred by wealthier nations. When comparing just low-income countries and their richer counterparts, the report argues the cost differential rises to 10 times, with low-income countries facing costs of $200 per kilogram. This is despite the fact that low-income countries consume almost three times less plastic per capita than high-income countries.

The report highlights the structural inequities built into the current plastics value chain, which disproportionately impact low-income countries. These countries have minimal influence on which plastic products are produced and how they are designed, yet are often expected to manage these products once they reach their end-of-life.

The high cost of plastic waste in low-income countries is also due to the lack of technical and financial resources for waste management. The rate of plastic production, particularly for single-use plastic, is far outpacing the ability of these countries to manage the waste. As a result, the majority of plastic waste ends up in landfills or the environment, contributing to marine litter and pollution.

The cost of plastic waste in the EU

Plastic waste is a rising financial and environmental concern across the globe. The total cost to governments of managing plastic waste between 2021 and 2040 could reach up to USD 670 billion. In high-income countries, the total lifetime cost for one kilogram block of plastic waste is US$19, compared to eight times that for middle and lower-income countries at an average of US$150, and 10 times that for lower-income countries, at US$200.

In the EU, the average person generated 36.1 kg of plastic packaging waste in 2021, an increase of 29% since 2010. The total plastic waste produced in the EU in 2021 was 16.13 million tonnes, of which 6.56 million tonnes were recycled. Sorted plastic waste production in the EU doubled from 9.5 million tonnes in 2004 to 19 million tonnes by 2020. On average, an EU citizen produces 42.6 kg of sorted plastic waste annually, with Belgians producing more than double that amount.

The EU is trying to find circular and climate-friendly ways of managing its plastic waste. However, the low share of plastic recycling in the EU means significant losses for the economy and the environment. About 22 million tonnes of plastic ended up in soils, rivers and oceans in 2019, and plastic leakage is projected to double by 2060. In 2019, plastics generated 1.8 billion tonnes of greenhouse gas emissions, with 90% of these emissions coming from their production and conversion from fossil fuels.

The economic impact of plastic waste management is significant. In Europe, marine litter is estimated to cost the EU fishing fleet 61.7 million euros each year. The town of Nice in France spends 2 million euros every year to keep its beaches free of plastic and litter for visitors. The average price of plastic scrap in Europe reached its highest value in 2022, at 467 Euros/tonne.

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