The Future Of Plastics: A Circular Economy

what is the new plastics economy

The New Plastics Economy is an initiative that aims to create a circular economy for plastics, where plastic never becomes waste. It is underpinned by a common vision shared by more than 1,000 organisations, including national and regional Plastics Pacts and the Global Tourism Plastics Initiative. The initiative is led by the Ellen MacArthur Foundation, in collaboration with the UN Environment Programme (UNEP). It offers governments the opportunity to signal their alignment with this vision and gain global recognition for their efforts in shifting towards a circular economy for plastics. The New Plastics Economy initiative has created momentum and signaled to businesses and policymakers that transitioning from a linear to a circular economy for plastic is a priority.

Characteristics Values
Goal To create a global economy in which plastics never become waste
Approach Driven by design, a circular economy eliminates waste and pollution, keeps products and materials in use, and regenerates natural systems
Benefits Benefits society, the environment, and the economy
Areas of Focus Tackling global challenges like climate change, biodiversity loss, waste, and pollution
Principles Eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature
Priority Elimination of problematic or unnecessary plastic packaging through redesign, innovation, and new delivery models
Strategies Increase reuse and recycling of plastic packaging
Progress The 2016 and 2017 New Plastics Economy reports captured worldwide headlines, revealing the financial and environmental costs of waste plastic and pollution
Targets In the last year, the initiative has brought together 15 leading companies committed to work towards 100% reusable, recyclable, or compostable plastic packaging by 2025
Support The Ellen MacArthur Foundation, an international charity, and PACE, a public-private collaboration platform and project accelerator for the circular economy
Call to Action The Ellen MacArthur Foundation launched a call for a UN Treaty on plastic pollution, alongside a business manifesto signed by 45 leading companies

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The Ellen MacArthur Foundation

The Foundation's New Plastics Economy initiative has rallied businesses and governments behind a positive vision of a circular economy for plastics. The initiative is underpinned by a common vision for a circular economy for plastic, delivered by two key voluntary mechanisms. Firstly, by signing the Global Commitment, businesses and governments worldwide agree to concrete 2025 targets and transparent annual reporting on progress. Secondly, through the Plastics Pact network, countries and regions bring together key stakeholders to drive forward a circular economy for plastic, with clear 2025 targets and annual public reporting.

The Foundation's work on the New Plastics Economy is driven by a vision of a global economy in which plastics never become waste. This involves tackling significant challenges such as climate change and biodiversity loss. The circular economy approach aims to eliminate waste and pollution, keep products and materials in use, and regenerate natural systems, creating benefits for society, the environment, and the economy.

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Circular economy

The New Plastics Economy is an initiative that presents a vision of a global economy in which plastics never become waste. It offers a new way of thinking about plastics as an effective global material flow. The initiative is underpinned by a common vision for a circular economy for plastic.

The Ellen MacArthur Foundation, an international charity, is committed to the creation of a circular economy that tackles some of the biggest challenges of our time, such as climate change and biodiversity loss. Driven by design, a circular economy eliminates waste and pollution, keeps products and materials in use, and regenerates natural systems, creating benefits for society, the environment, and the economy. The foundation works with businesses, academia, policymakers, and institutions to mobilize systems solutions at a global scale.

The New Plastics Economy initiative has created exciting momentum and is a clear signal to businesses and policymakers that transitioning from a linear to a circular economy for plastic is a priority. The initiative is delivered through two key voluntary mechanisms: the Global Commitment and the Plastics Pact network. By signing the Global Commitment, businesses and governments agree to concrete 2025 targets and transparent annual reporting on progress. Through the Plastics Pact network, countries and regions bring together key stakeholders to drive forward a circular economy for plastic, with clear 2025 targets and annual public reporting.

The Ellen MacArthur Foundation has also developed the Upstream Innovation guide, which shows how to harness the power of upstream innovation to eliminate problematic or unnecessary plastic packaging through redesign, innovation, and new delivery models. The foundation's 2016 and 2017 New Plastics Economy reports captured worldwide headlines, revealing the financial and environmental costs of waste plastic and pollution. In 2021, the foundation launched a call for a UN Treaty on plastic pollution, alongside a report and a business manifesto signed by 45 leading companies.

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Global Commitment

The Global Commitment, launched in 2018, is a voluntary effort led by the Ellen MacArthur Foundation in collaboration with the UN Environment Programme. It has united more than 500 organisations, including governments, businesses, NGOs, and investors, behind a common vision of a circular economy for plastics. The commitment aims to eliminate unnecessary plastic packaging and products, innovate towards new materials and business models, and circulate all plastic used to keep it in the economy and out of the environment.

Signatories of the Global Commitment set ambitious 2025 targets and publicly report their progress annually. This includes companies representing 20% of all plastic packaging produced globally, such as L'Oréal, Mars, Incorporated, Nestlé, PepsiCo, The Coca-Cola Company, and Unilever. The commitment has shown that meaningful progress can be made to tackle plastic waste and pollution, but the world remains off track.

The Global Commitment provides a framework for governments to address plastic pollution and gain global recognition as front-runners in the shift towards a circular economy for plastics. It offers an opportunity to signal alignment behind a common vision, gather data, and report progress while allowing for different approaches to be tested, addressing the full life cycle of plastics. The annual reporting process aims to achieve transparency and credibility in the efforts to reduce plastic pollution.

The Global Commitment is designed with a life-cycle perspective, recognising that each part of the commitment is essential for a systematic approach to addressing plastic pollution. It is a useful framework to help deliver the activities called upon under the resolution agreed at UNEA 5.2 for an international legally binding instrument on plastic pollution. By engaging early in the process, governments can identify priority areas to reduce plastic pollution and prepare to meet future obligations under a global plastics instrument.

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Plastic pollution

The circular economy model aims to eliminate waste and pollution, keep products and materials in use, and regenerate natural systems. For plastics, this means ensuring that all plastic packaging is designed to be reusable, recyclable, or compostable, and that it is actually reused, recycled, or composted in practice. This approach not only benefits the environment but also creates value for society and the economy.

The New Plastics Economy initiative has gained significant momentum, with more than 1,000 organizations, including governments, businesses, and regional Plastics Pacts, signing on to the Global Commitment. Through this commitment, signatories agree to concrete targets for 2025 and transparent annual reporting on their progress. This includes eliminating unnecessary plastic packaging, increasing the reuse and recycling of plastic packaging, and ensuring that all plastic packaging is free of hazardous chemicals.

To support this transition, the Ellen MacArthur Foundation provides resources and guidance through its Upstream Innovation guide and other publications. They also work with businesses, academia, policymakers, and institutions to mobilize systems solutions at scale globally. Additionally, the Foundation has brought together leading companies committed to 100% reusable, recyclable, or compostable plastic packaging by 2025.

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Climate change

Plastic pollution is a significant contributor to climate change. As 98% of single-use plastics are made from petrochemicals derived from fossil fuels, the extraction, transport, manufacturing, and disposal of these plastics create carbon emissions that cause global warming. The refinement of plastics emits an additional 184 to 213 million metric tons of greenhouse gases annually. Furthermore, two-thirds of all plastic waste comes from single-use products, and of the seven billion tonnes of plastic waste generated globally, less than 10% has been recycled. This waste often ends up in oceans, harming marine life and reducing the ocean's capacity to sequester carbon dioxide.

The production and use of plastics are closely linked to the fossil fuel industry. About 4-8% of annual global oil consumption is currently associated with plastics, and this reliance is expected to increase. If the status quo is maintained, plastics will account for 20% of oil consumption by 2050. This is particularly concerning given the world's transition to renewable energy sources, as the fossil fuel industry views plastics as a "Plan B" to maintain profit margins.

To address the impact of plastics on climate change, it is essential to reduce the use of single-use plastics and transition to reusable alternatives. Individuals can make a difference by using reusable water bottles, bags, and containers, avoiding overly packaged items, repurposing old containers, and supporting companies committed to reducing plastic use. Additionally, supporting legislation and policies that reduce plastic production, prohibit toxic chemicals in plastic manufacturing, and promote responsible waste management are crucial steps toward mitigating the climate impact of plastics.

The connection between plastics and climate change is evident, and it is imperative to recognize that addressing plastic pollution is a critical component of combating climate change. By reducing our reliance on single-use plastics and transitioning to a more sustainable and circular economy for plastics, we can contribute to mitigating climate change and protecting our planet.

Frequently asked questions

The New Plastics Economy is an initiative by the Ellen MacArthur Foundation that aims to create a circular economy for plastics, where plastic never becomes waste.

A circular economy is a system that eliminates waste and pollution, keeps products and materials in use, and regenerates natural systems. It involves redesign, innovation, and new delivery models to reduce the use of single-use packaging and promote the reuse, recycling, or composting of plastic packaging.

The New Plastics Economy addresses the urgent issue of plastic pollution and its environmental and financial costs. By 2050, oceans are expected to contain more plastic than fish, and the plastic industry will consume a significant portion of the annual carbon budget. The initiative provides a framework to tackle these challenges and promote sustainable practices.

The New Plastics Economy is underpinned by three key principles: eliminate waste and pollution, circulate products and materials at their highest value, and regenerate nature. It involves collaboration between businesses, governments, and organizations to set concrete targets, share best practices, and drive the transition to a circular economy for plastics.

Governments and organizations can join the Global Commitment, a voluntary framework led by UNEP (UN Environment Programme), to signal their alignment with the vision of a circular economy for plastics. They can set ambitious targets, report their annual progress, and collaborate with other signatories to drive systemic change. The Ellen MacArthur Foundation also offers resources and support to help governments and businesses implement circular economy approaches.

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