Plastic's Environmental Cost: A Global Crisis

Plastic pollution is a serious threat to the environment, with the lifetime cost to society, the environment and the economy of plastic produced in 2019 alone estimated at US$3.7 trillion. This cost is set to double for the plastic produced in 2040 unless action is taken. Plastic is responsible for generating 1.8 billion tonnes of greenhouse gas emissions a year, more than the annual emissions from aviation and shipping combined. These emissions are accelerating the impact of climate change, with huge costs to governments and society. 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 USD 100bn over the same period.

The lifetime cost of plastic to the environment is US$3.7 trillion

Plastic pollution is a menace to society. The plastic produced in 2019 alone cost the environment US$3.7 trillion. This is more than the GDP of India. If action is not taken, this cost is set to double for the plastic produced in 2040.

The report “Plastics: The cost to society, environment and the economy” reveals that across the lifecycle, plastic is responsible for generating 1.8 billion tonnes of greenhouse gas emissions (GHG) a year. This 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. Plastic could therefore be contributing to the climate crisis on two fronts, by emitting carbon dioxide and by limiting the ability of the ocean to remove this carbon dioxide, exacerbating the impact of the emissions.

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. The multiplier of eight and 10 is predominantly linked to the mismanagement of plastic waste and costs to the marine environments. Wealthier countries often displace and reduce their waste management costs by exporting their plastic waste to lower-income countries to process.

Plastic waste management costs governments billions of dollars

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 period.

The cost of plastic to 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 total lifetime costs of a kilogram of plastic are 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.

The report "Plastics: The cost to society, environment and the economy" reveals that across the lifecycle, 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.

Plastic waste disproportionately affects low-income countries

Plastic pollution is a menace to society, and the environment pays a heavy price for it. 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, more than the GDP of India. This cost is set to double for the plastic produced in 2040 unless action is taken.

The impact of plastic waste is disproportionately felt in low-income countries. A WWF-commissioned report developed by Dalberg 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 total lifetime costs of a kilogram of plastic are 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 with their wealthier counterparts, the cost differential rises to 10 times, with low-income countries hit with costs of $200 a 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 for processing. This mismanaged plastic waste could threaten the ability of the oceans to act as a carbon sink, further contributing to the climate crisis.

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.

Plastic waste contributes to climate change

Secondly, plastic waste, if not properly managed, can end up in oceans and other water bodies, threatening their ability to act as carbon sinks. Oceans absorb a significant amount of carbon dioxide from the atmosphere, helping to mitigate the effects of climate change. However, plastic waste in the oceans can limit their capacity to absorb carbon dioxide, exacerbating the impact of emissions.

The mismanagement of plastic waste is a global issue, with low- and middle-income countries bearing a disproportionate burden. Wealthier countries often export their plastic waste to lower-income countries for processing, reducing their waste management costs. As a result, low- and middle-income countries face higher costs associated with the environmental and health impacts of plastic. The total lifetime costs of a kilogram of plastic waste in these countries can be as high as $150, compared to $19 in high-income countries.

The accumulation of plastic waste in the environment also has economic costs. The total cost to governments of managing plastic waste between 2021 and 2040 is estimated to reach up to USD 670 billion. In addition, the cost of inaction for businesses could reach USD 100 billion over the same period. The problem is further exacerbated by the fact that most plastic production is "virgin" plastic, and a significant portion of it is used for short-lived, single-use products. With humanity producing over 200 million tonnes of plastic waste annually, the costs to the environment, society, and the economy are immense.

Plastic waste threatens the ocean's ability to act as a carbon sink

Plastic waste is a huge problem for the environment. In 2016, an estimated 11% of the world's plastic waste (about 19 to 23 million metric tonnes) entered our rivers, seas and oceans. The Ellen McArthur foundation has predicted that by 2050, there will be more plastic than fish in the ocean.

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