Reduction in plastics production under consideration

International brands including Coca Cola and PepsiCo (Nasdaq:PEP) on Monday called for a global pact to tackle plastic pollution that includes reducing plastic production, a key growth area for the oil industry.

Officials from around the world will gather later this year at a United Nations Environment Assembly (UNEA 5.2) conference to start negotiations on a treaty to tackle the plastic waste crisis that is clogging landfills, polluting oceans and killing wildlife.

It's still unclear whether an agreement will focus on waste management and recycling, or take tougher measures, such as B. Limiting the production of new plastic, a move that would likely face opposition from big oil and chemical companies and big plastic producers like the United States.

The more than 70 signatories to Monday's joint statement include consumer goods companies like Unilever (NYSE:UL) and Nestle, which sell a variety of single-use plastic products from shampoos to candy bars, as well as retailer Walmart (NYSE:WMT) and the French Bank BNP Paribas (OTC:BNPQY).

"We are at a critical juncture in creating an ambitious UN agreement," the statement said, noting that any deal should "reduce the production and use of virgin plastic."

"UNEA 5.2 is the crucial and most opportune moment to turn the tide in the global plastic pollution crisis. We cannot afford to miss it," the statement said.

Less than 10% of all plastic ever made has been recycled, and a Reuters study last year found the new recycling technologies being touted by the plastics industry are struggling to tackle the problem.

At the same time, the production of plastic derived from oil and gas will double within 20 years. This is an important future revenue stream for energy companies as demand for fossil fuels falls with the advent of renewable energy and electric vehicles.

While expanding global recycling is vital to tackling plastic waste, these efforts will not prevent plastic pollution from skyrocketing without production restrictions, a groundbreaking 2020 study by the Pew Charitable Trusts has found.

As pressure mounts on companies that sell products made from hard-to-recycle plastic to clean up the resulting waste, some have teamed up with cement makers to burn plastic waste as cheap fuel in the developing world, according to a Reuters investigation last week year resulted.