The True Cost Of Plastic: Impact On Nature And Humans

The cost of plastic is often invisible to consumers, who may not realise they are paying for it indirectly through taxes and service fees. The price of plastic is rising, with the national average price of Grade A film now 16.94 cents per pound, compared with 15.63 cents last month. Polypropylene (PP) has also risen by 51% since last month, and is now trading at 8.13 cents per pound. The price of PET, natural HDPE, colour HDPE and PP have increased by 6%, 10%, 45% and 51% respectively over the past month.

How much does plastic cost to produce?

The cost of producing plastic varies depending on the type of plastic and the volume being produced. For example, a standard plastic grocery bag costs about a penny to produce, while a paper bag costs 4-5 cents.

Plastics are used in high-volume manufacturing due to their cost advantages, consistency of parts, and range of mechanical properties. The cost of producing plastic parts is determined by the number of cavities, which is driven by sales forecasts.

The lifetime global cost of plastic produced in one year is more than the GDP of India. In 2019, the lifetime cost of plastic produced globally was estimated to be around $5 trillion. This includes the cost of damage to the economy and the environment, as well as threats to wildlife.

Without urgent action, plastic production is projected to double by 2040, and plastic pollution could triple. This would put the lifetime cost of virgin plastic produced in 2040 at around $10 trillion, more than the combined GDP of Germany, Canada, and Australia in 2019.

How much does plastic cost the consumer?

Plastic may seem cheap, but its real cost is much greater than we realise. The lifetime cost to society, the environment and the economy of plastic produced in 2019 alone has been revealed to be US$3.7 trillion. The environmental impact of plastic packaging waste is catastrophic and far-reaching. Plastics dominate the ever-growing Great Pacific Garbage Patch, litter landscapes globally, and endanger wildlife through entanglement and ingestion. It is estimated that 11 million metric tons of plastic enter the ocean each year, equivalent to dumping a garbage truck full of plastic into the ocean every minute. Virtually every piece of plastic packaging waste produced still exists in some form today. It is buried in landfills, filling our oceans, and littering ecosystems worldwide.

The costs of simply collecting, sorting, disposing of and attempting to recycle plastic waste exceed $32 billion annually. The total cost to governments of managing plastic waste between 2021 and 2040 could reach up to USD 670 billion, with the cost of inaction for businesses potentially reaching USD 100 billion over the same timeframe. Currently, the social and environmental costs are estimated at USD 300–460 billion per year. This includes the health costs stemming from associated emissions, air pollution, and exposure to hazardous chemicals, as well as the cost of ocean clean-up and lost marine ecosystem services. With microplastics now being found in human blood and the health consequences of that yet unknown, the true cost could be significantly larger.

The price of scrap plastic varies. Grade B film is now 7.94 cents, compared with 6.94 cents last month. Grade C film remains at a low 0.5 cents per pound.

How much does plastic cost to recycle?

Recycling plastic is expensive. The global restructuring of the scrap market has been a disaster for the plastic recycling industry. The low value of scrap and high costs of recycling, coupled with low oil prices, means that recycling plastic now costs more than manufacturing virgin plastic. The price of recycled plastic is also increasing. One year ago, the national average price of post-consumer PP was 14.20 cents per pound, and now it is 6 cents per pound. The national average price of Grade A film is now 17.63 cents per pound, up from 10.25 cents one year ago.

The cost of recycling plastic also depends on the distance it needs to be transported. One source states that plastic recycling requires a $500/ton product price, to earn a 10% IRR off of c$1,000/Tpa of up-front capex, at a mechanical recycling facility with 0.3 tons/ton of CO2 intensity.

How much does plastic cost the environment?

Plastic is a menace to society and the environment. A report by Dalberg, commissioned by WWF, reveals that the lifetime cost to society, the environment and the economy of plastic produced in 2019 alone was US$3.7 trillion. This is more than the GDP of India.

The total cost to governments of managing plastic waste between 2021 and 2040 could reach up to USD 670 billion, with the cost of inaction for businesses potentially reaching USD 100 billion over the same timeframe. The cost of waste management is increasing every year, with more than US $32 billion spent on collecting, sorting, disposing of and recycling plastic waste. Governments, NGOs and citizens incur significant costs from undertaking clean-up activities, as high as US$15 billion per year.

Marginalised communities disproportionately bear the cost of the plastic lifecycle. The WWF-commissioned report also warns that the true cost of plastic on the environment, health and economies can be as much as 10 times higher for low-income countries, even though they consume almost three times less plastic per capita than high-income countries. The report estimates that the total lifetime costs of a kilogram of plastic is around $150 in low- and middle-income countries, which is eight times the $19/kilogram incurred by high-income countries. When comparing just low-income countries and their wealthier counterparts, the cost differential rises to 10 times, with low-income countries hit with costs of $200 a kilogram.

Plastic is responsible for generating 1.8 billion tonnes of greenhouse gas emissions (GHG) a year. That is more than the annual emissions from aviation and shipping combined. These GHG emissions are accelerating the surge of climate-change-related negative impacts such as shrinking glaciers, flooding, and crop death from more intense droughts, imposing huge costs on governments and society. Mismanaged plastic waste could threaten the ability of the oceans to act as a carbon sink, further contributing to the climate crisis.

How much does plastic cost to dispose of?

The cost of disposing of plastic waste varies depending on the method used. Landfills are the cheapest way to manage waste, with most urban local bodies in India spending Rs. 500-1,500 per ton of waste in 'tipping fees' for collecting, transporting, treating, and disposing of waste in dump sites. However, landfills are not sustainable as mixed waste has severe ecological effects, including large-scale fires due to methane generated by biodegradable waste and leachates poisoning local water sources. The negative impacts of mismanaged waste likely cost the world around $3,300-33,000 per ton per year in terms of reduced natural capital in affected ecosystems.

Recycling plastic waste is a more sustainable alternative to landfills, as recycling one ton of plastic is estimated to save 13.8 barrels of oil, 5744 kWh of energy, and 810 cubic feet of landfill space. The global waste management market, which includes recycling and other waste management solutions, was estimated at $400-1600 billion in 2020-2021 and is expected to reach $700-2483 billion by 2030.

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