No Plastics Treaty: Why the Delay Matters for Business

A couple of days ago, the talks in Geneva ended without agreement on the long-sought global plastics treaty. It could have been a turning point for how the world deals with plastic waste. Instead, businesses are left once again in limbo.

Why the Collapse Was a Big Deal

The aim of the treaty was to create a legally binding agreement covering plastic production, hazardous chemicals, design standards and financing for change. That opportunity slipped away when countries clashed over production caps and stricter rules on chemicals. The result was stalemate, with no deal and no clear plan for the next round of talks.

For businesses, this is more than a diplomatic failure. It leaves an already complex landscape even more fragmented.

The Current Picture: UK and Beyond

Here in the UK, companies are already working within toughening regulations. The Plastic Packaging Tax, introduced in 2022, means any plastic packaging that does not contain at least 30% recycled material is taxed at £217 per tonne. Extended Producer Responsibility (EPR) schemes are being phased in, shifting the full cost of waste management onto producers. Across Europe, the Single-Use Plastics Directive has banned items like straws, cutlery and polystyrene food containers, with more restrictions on the way.

These measures are not optional. They are law, and they are only becoming stricter. What a global treaty could have done is create consistency across borders, giving businesses one framework to work to rather than a patchwork of national rules.

What Businesses Could Have Gained if the Treaty Had Passed

The missed opportunity becomes clearer when you look at what was on the table.

1. Regulatory clarity-Instead of facing different requirements in each country, businesses could have planned around a single global standard.

2. Fair competition-Companies investing in sustainable practices would not risk being undercut by others operating under weaker rules.

3. Market for alternatives-A global push would have driven demand for new materials and packaging solutions, opening opportunities for innovation.

4. Stronger supply chains-Better recycling systems would mean greater access to secondary materials, reducing reliance on virgin plastics tied to volatile oil prices.

5. Investor and consumer trust-A recognised treaty framework would have allowed businesses to show credible progress at a time when both investors and customers are asking harder questions about plastics.

What Businesses Can Do in the Interim

The absence of a treaty does not mean the absence of action. Across the UK and globally, many companies are already finding ways to push forward.

• Redesigning packaging: UK retailers are investing in alternatives to virgin plastics and trialling compostable and refillable formats. Supermarkets, for example, are testing refill stations for dry goods and household products.

• Boosting recycled content: Consumer goods firms are securing supplies of recycled plastic to stay ahead of the Plastic Packaging Tax, while others are shifting to glass, aluminium or paper where it makes sense.

• Collaborating on reuse models: From coffee chains trialling returnable cups to global shipping firms testing reusable pallet wraps, businesses are experimenting with systems that keep materials in use for longer.

• Joining voluntary pacts: The UK Plastics Pact, for instance, brings together major brands, retailers and recyclers to accelerate progress beyond regulation.

• Exploring digital solutions: Some organisations are using blockchain and advanced labelling to improve traceability in plastic supply chains, helping them measure and report progress with more credibility.

  
  

These examples show that business momentum has not stopped. In some cases, companies are even moving faster than governments.

Why the Delay Matters

The reality is that businesses are already under pressure. From packaging taxes to upcoming bans, the cost of standing still is rising. Every year without a treaty makes it harder to scale the kind of systems—reuse models, high-quality recycling, closed loop supply chains—that would cut costs and reduce risks in the long run.

And the uncertainty creates hesitation. Companies that trade across the UK, Europe, Asia and the US are juggling multiple sets of rules, compliance costs and reporting demands. That wasted energy could have been avoided with one global agreement.

Moving Ahead, Regardless of Treaty Outcomes

The collapse in Geneva is frustrating, but it is not a reason to pause. In fact, it makes early action even more important. Businesses that reduce single-use plastics, redesign packaging and invest in reuse are not only complying with current UK and EU rules, they are also getting ahead of the global standards that will eventually arrive.

The treaty may not have been agreed this time, but the momentum has not disappeared. The pressure will only build, and when it does, those who acted early will be the ones ready to meet it.