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160 financial institutions, representing $15.5 billion in combined assets, call for an ambitious international treaty to end plastic pollution – Environment – United Nations Finance Initiative
Geneva, April 19, 2024 – One hundred and sixty financial institutions and two industry stakeholders from around the world call on governments to negotiate an ambitious treaty to end plastic pollution ahead of negotiations taking place at the fourth meeting of the Intergovernmental Negotiation Committee on Plastic Pollution (INC -4). next week.
Representing 15.5 trillion dollars in combined assets, signatories of the Financial Statement on Plastic Pollution come from all regions, including a strong voice from OECD countries, and notably 15 signatures from Asian financial institutions, including from India, Indonesia, Singapore, Japan and the Republic of Korea, where the next and final round of negotiations will take place before the end of 2024. By signing the Declaration, financial institutions recognize that the financial sector has an important role in mitigating financial risks related to plastic pollution and take this opportunity to inform negotiators what a robust agreement would include in their outlook.
“Redirecting private and public financial flows towards the treaty’s objectives will be crucial to tackling the challenge of plastic pollution head-on. We ask Member States to take note of the call from a significant segment of the global financial industry to create a landmark environmental treaty that takes into account the commercial challenges and risks and opportunities associated with financing solutions to this global pollution issue.” Head of UNEP FI, Eric Usher
The declaration specifically calls for the treaty to be supported by binding rules and obligations for governments to address the entire life cycle of plastic, that it be based on a scientific approach, and that it create the framework to align all economic participants with its objectives. . Furthermore, it calls for the treaty to include harmonized targets across the entire plastics value chain and ensure that companies assess and disclose plastic-related risks and opportunities. It also highlights the importance of promoting a policy environment conducive to the transition to a sustainable and equitable economy that addresses plastic pollution, suggesting initiatives such as extended producer responsibility (EPR) schemes.
Plastic pollution is closely linked to the triple planetary crisis of climate change, biodiversity loss and pollution. Plastic is designed to account for 15% of greenhouse gas emissions by 2050 if no action is taken, and plastic pollution is clearly identified as an important issue in the 7th goal of the Global Biodiversity Framework, which aims to “prevent, reduce and work to eliminate plastic pollution”. The Declaration establishes the link between these environmental issues and highlights the synergistic benefits of addressing plastic pollution in climate action and just transition, as well as in preserving and restoring biodiversity.
“We know that climate and natural issues are inextricably linked – both posing significant systemic risks to the industry and therefore to investors and their holdings. Climate change, biodiversity loss, plastic pollution and other issues cannot be addressed in isolation but require systemic responses. With today’s announcement, investors express their desire for governments to establish a clear and robust political mandate to tackle the issue of plastic pollution, in line with climate and biodiversity efforts. This mandate must call for an end to plastic pollution and be based on a scientific approach that guides all economic actors towards their objectives.” David Atkin, CEO of Principles for Responsible Investment
The statement was prepared by UNEP FI, the Principles for Responsible Investment, the Biodiversity Finance Foundation, the Business Coalition for a Global Plastics Treaty, the Dutch Association of Investors for Sustainable Development (VBDO) and CDP.
Download the declaration and list of signatories here.