Ellen MacArthur Foundation: How the UN Global Plastic Treaty could benefit small businesses

26 Jun 2024 --- The Ellen MacArthur Foundation has released a report on how to effectively shape the upcoming UN Global Plastic Treaty to benefit micro, small and medium enterprises (MSMEs). The findings show many MSMEs are hopeful that specific policy measures implemented in the treaty could ensure a profitable transition away from plastic usage while competing with larger businesses. 

The report, “Making the Global Plastics Treaty work for MSMEs,” was commissioned by the Ellen MacArthur Foundation in partnership with WWF (World Wide Fund for Nature) and provides critical insights and recommendations for implementing the treaty to support MSMEs. 

The research consulted 132 MSMEs in different regions, sizes and positions on the plastics value chain. Each business was consulted during the report's creation. Of those, 63% viewed the treaty positively, and 37% were neutral. 

Marta Longhurst, global treaty manager at the Ellen MacArthur Foundation, says: “MSMEs represent 90% of businesses across the planet and are essential to the successful implementation of the treaty. Global rules can unlock significant benefits and opportunities for MSMEs if implemented effectively and fairly.” 

“This study shows strong support for the global rules in the treaty from MSMEs and highlights the crucial steps needed to support them through the process to end plastic pollution, benefiting businesses across the entire plastics value chain.” 

Waste pickers could stand to profit with the right treaty stipulations, according to the report.Creating employment
The report states that MSMEs in plastic production and conversion sectors are likely to experience short-term negative impacts on employment as demand for these activities will decrease due to fees, bans and phaseouts. 

However, opportunities for increased employment in plastic reduction and substitution activities, such as reuse and recycling, could have the potential to offset these losses due to incentives. 

“MSMEs will need transitional support, particularly in relation to upskilling, reskilling, technology and education programs, to take advantage of job creation in these market segments,” the report reads.

The report found that informal sector workers, like waste pickers, could also benefit from funding channeled through schemes such as extended producer responsibility systems. This would require creating opportunities to reskill and increasing activity in collecting, sorting and processing commensurate with meeting reuse and recycling targets. 

Unlocking capital 
Increases in capital flow to alternative material development, such as bioplastics, could also boost MSMEs, found the report. Other innovators creating new refill and reuse systems would also stand to benefit. 

“Effective and fair implementation of the treaty based on global rules will unlock significant environmental, economic and social benefits for MSMEs, outweighing short-term challenges,” it reads. 

“MSMEs anticipate benefits in new market areas such as alternative materials, waste management and product delivery models.”

To support MSMEs, the treaty must include specific policy measures that support them in managing the transition. This would include public sector investment in countries with underdeveloped waste infrastructure, differentiated implementation timelines, knowledge and technology transfer, vocational training and flexible financial instruments. 

“Plastic pollution is everywhere. It is in our streets and in our seas. It is a crisis which needs our urgent attention. A legally binding treaty is a vital tool in this fight and would drive change at the pace and scale needed,” Longhurst concludes. 

The final round of negotiations (INC-5) for the UN Global Plastic Treaty will be held this November in South Korea. 

By Louis Gore-Langton