By Andrew Peterson When it takes 500 years for a toothbrush to decompose, the world has a problem. When 5 per cent of global greenhouse gas emissions come from plastics, we have an opportunity. The upcoming negotiations in Geneva for the UN Plastics Treaty – formally the Intergovernmental Negotiating Committee on Plastic Pollution (INC-5.2) – could be a tipping point. But only if we act decisively. We at the Business Council for Sustainable Development Australia (BCSDA) believe the treaty must provide clear, enforceable rules to support the transition to a net-zero, nature-positive economy.
We know our members, from global brands to local manufacturers, stand ready to innovate. But they need certainty. They need alignment. And above all, they need a level playing field.
The policy gap that holds us back
Australia’s plastic packaging recovery rate is stuck at 19 per cent, and soft plastics recycling lags far behind at 6 per cent. Despite growing investment in infrastructure and promising technology like advanced recycling, the economics remain fragile.
The regulatory inconsistency across states and territories compounds the challenge.
Globally, the plastics economy is on track to double by 2050. Without harmonised regulation, we risk fragmented markets, compliance headaches, and growing investor uncertainty. As recent analysis from Circular Australia shows our national circularity rate is just 4 per cent. That’s well below the global average and a red flag for economic resilience.
Yet the demand for solutions is real. Colgate-Palmolive’s recyclable toothpaste tube, years in the making, exemplifies the kind of innovation that flourishes with the right incentives. But even technically recyclable products face barriers in practice due to inconsistent systems, labelling, and standards.
Why INC-5.2 matters now
In less than 100 days the INC-5.2 must finalise the treaty’s scope and ambition. Key business-relevant issues are on the table: extended producer responsibility (EPR), chemical transparency, production caps, and harmonisation of standards. Delay or dilution now risks eroding the treaty’s credibility and its ability to drive investment.
The divergence in views is stark. Some nations support a “treaty of the willing” with non-binding commitments. Others, including Australia, favour using existing financial mechanisms over a dedicated global plastics fund. Meanwhile, African countries and high-ambition coalitions push for mandatory rules and new financing.
What is needed is convergence. The same kind we see in climate and biodiversity treaties: rules, reporting, and robust institutions. Business thrives on clarity. So does environmental progress.
Four actions for a Treaty that works
1. Mandate globally consistent design and labelling standards – ensure packaging is not only recyclable in theory but recycled in practice. Standards should drive innovation, not confusion.
2. Embed extended producer responsibility into the treaty – EPR schemes, including modulated fees, are critical to funding recycling systems and closing the loop.
3. Align with existing international conventions – harmonise with the Basel, Rotterdam and Stockholm conventions to streamline compliance and enforcement.
4. Establish a governance and reporting framework – create a COP-style implementation mechanism, including an independent scientific body, national reporting, and compliance pathways.
The time for alignment is now
Australia is not waiting. The National Packaging Targets remain in force beyond 2025. A Circular Economy Act is under active discussion. Industry is investing despite regulatory limbo. But without a coherent global framework, our efforts risk being stranded.
This treaty is not just about plastic. It’s about the economic model we choose. Do we want to compete in the resource-efficient, innovation-led markets of tomorrow? Or be left navigating a patchwork of voluntary schemes and policy U-turns?
We call on negotiators to stay the course. Finalise a treaty with teeth. Give business what it needs to lead.
Andrew Petersen is Chief Executive Officer of the Business Council for Sustainable Development Australia.