Potential impacts of the Global Plastic Treaty, an international measure, on Thai businesses. Thailand is scheduled to reach a conclusion on this matter by 2025.

Global Plastic Treaty (GPT) – Aiming for Conclusion by 2025
       Following the 5th Intergovernmental Negotiation Committee (INC-5) meeting held in early December 2024, a global plastic treaty will be drafted, with the goal of establishing internationally binding measures by 2025.
 The key issues to be negotiated include:(1) Plastic products containing hazardous chemicals; (2) Production volume of Primary Plastic Polymers; (3) Financial mechanisms aimed at reducing plastic waste in both terrestrial and marine environments worldwide.
       Several countries have proposed that reducing the production of Primary Plastics be a key strategy to cut plastic waste, which currently amounts to approximately 430 million tons annually. This is particularly concerning for plastics containing environmentally harmful components, such as Polyvinyl chloride (PVC), Polystyrene (PS), and single-use plastics. The effort aims to reduce waste across the entire lifecycle, with an estimated 14 million tons of plastic projected to end up in the ocean each year.

KResearch estimates that 35% of Thailand’s plastic production may be affected, as it falls within the groups targeted by the Global Plastic Treaty.
        However, the formulation of international environmental policies related to plastics impacts businesses in various aspects, both positive and negative, which can be summarized as follows:
•    Production Costs: Shifting to environmentally friendly materials may increase production costs in the short term. However, in the long term, it may help reduce costs related to waste management and environmental restoration.
•    Responsibility on Producers: Businesses must expand their responsibility for their products across the entire life cycle (Extended Producer Responsibility: EPR), from design and production to usage and waste management. This may require investment in effective recycling systems and waste management.
•    Adaptation of other Industries: Businesses involved in the production and use of plastics must adapt by reducing single-use plastics and increasing the use of recyclable materials.
•    New Business Opportunities: These policies create opportunities for businesses to develop new innovations, such as producing alternatives to plastics, developing more efficient recycling systems, and creating environmentally friendly products.
•    Image and Sustainability: Adhering to environmental policies enhances a business’s image and responds to the growing consumer demand for environmentally conscious products.

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