Wu Bi'e/North American Intellectual Property News Editorial Department
Image sources: shutterstock, accesszine
The global push to reduce plastic consumption is intensifying year by year, with discussions on reducing plastic production increasingly heated. Taiwan, a vital link in the global supply chain, boasts a plastics market exceeding US$10 billion and employing 200,000 people. With the upcoming Global Plastics Treaty negotiations, which will begin by the end of this year (2025), potentially imposing caps or reduction targets on virgin plastic production, the increasingly stringent international regulations on plastic products present a critical survival issue for Taiwan's plastics industry chain, necessitating prompt response and the pursuit of R&D and transformation.
Plastic is one of the world's most important materials. Global annual plastic production increased from approximately 1.5 million metric tons in 1950 to over 400 million metric tons in 2023. It is estimated that the world's total historical plastic production has reached nearly 10 billion tons, with over half produced since 2000. Asia accounts for over half (51%) of global plastic production, followed by North America at approximately 19%, Europe at approximately 16%, and the Middle East at approximately 7%. The global plastics market (excluding upstream industries) is estimated to be worth over US$1 trillion and employ over 10 million people. Taiwan's plastics market is estimated to be worth over US$10 billion and employ over 150,000 people.
As consumer awareness of plastic pollution grows, governments and businesses are gradually taking action and promoting policies such as plastic taxes and extended producer responsibility (EPR). In 2021, the European Union (EU) introduced the Single-Use Plastics Directive (SUPs Directive), requiring member states to reduce single-use plastic waste by at least 50%. The same year, it also introduced fees for unrecycled plastic packaging waste and banned the use of certain plastic products. This has prompted member states and businesses in many countries to actively respond to the SUPs Directive and promote various plastic reduction policies. Currently, over 90 countries and regions around the world have promoted or are considering implementing plastic-related regulations, but a unified global standard has yet to be established.
Negotiations are underway on the Global Plastics Pact, a legally binding international agreement aimed at addressing the entire life cycle of plastics, from production and design to waste management, to comprehensively address the problem of plastic pollution. However, due to significant disagreements among the parties on key issues, the negotiations have been challenging, resulting in the failure to reach a consensus as originally planned by the end of 2024.
Jian Youxin, Chairman of the Taiwan Research Foundation for Sustainable Energy, noted that plastics is a trillion-dollar industry in Taiwan, employing over 200,000 people. Early action is needed to address the Global Plastics Pact to prevent disruptions to the development of related businesses and the livelihoods of their employees. The Taiwan Research Foundation for Sustainable Energy (TAISE) held its third Taiwan Plastics Forum this year, inviting industry, government, and academia to discuss the latest progress in the Global Plastics Pact negotiations, which is crucial to the survival of Taiwan's plastics industry.
Recent Developments on the Global Plastics Pact
The United Nations Environment Programme (UNEP) has proposed an 80% reduction in plastic consumption by 2040 and has resolved to establish binding global plastic regulations. The UN invited member states to establish the Intergovernmental Negotiating Committee (INC) in 2022. The most recent round of negotiations was the second phase of the fifth session (INC-5.2), held in Geneva, Switzerland, in August 2025. The session ultimately adjourned without reaching a consensus, leaving the treaty text undetermined. The sixth round of negotiations is scheduled for December 2025 in Geneva, Switzerland. If the final version of the convention adopts a cap or quota on virgin plastic production, some of Taiwan's petrochemical and raw material production capacity may have to be reduced, which would put pressure on large companies that rely on virgin plastic raw materials and increase the cost of obtaining them.
Gu Yang, CEO of the Taiwan Sustainable Energy Research Foundation, analyzed that there are three major controversies in the sixth round of negotiations. The first is global plastic production. Oil-producing countries oppose restricting plastic production and advocate focusing on plastic waste management and product design improvements. The second is hazardous chemical management. Member states still have differences on the management methods of harmful chemicals added to plastics. The third is that developing countries emphasize the need for financial and technical support. The allocation of funds and the design of support mechanisms remain difficult points in the negotiations.
Global plastic recycling faces technical and cost bottlenecks
The problem of plastic waste is becoming increasingly serious, yet global recycling efforts remain limited. It's estimated that approximately a quarter of all plastic produced to date is still in use, but over half is discarded, and approximately 10% is incinerated. Due to the wide variety of plastic products and the complex additives used, the global recycling rate for plastic waste is only approximately 9%, far lower than that of other materials. Currently, plastic recycling faces bottlenecks in technological innovation and high costs, and recycled plastics generally suffer from poor quality and functionality. However, if countries actively promote recycling and implement proactive fiscal measures such as "plastic taxes," the plastic waste recycling rate is projected to increase significantly to over 40% by 2060. Gu Yang also pointed out that while recycling is an important means of reducing waste and conserving resources, its primary role is to mitigate the environmental impact of plastics. Over-reliance on recycling as a solution by society and businesses could undermine public and business commitment to reducing the use of plastic materials and products at the source.
The development of bioplastics still faces two major challenges
Currently, up to 99% of global plastics still come from fossil fuels like oil and natural gas. Therefore, the development of bioplastics (Bioplastics) is considered a future trend. Bioplastics use renewable resources as raw materials, helping to conserve limited oil and natural gas, reducing dependence on fossil fuels and lowering the carbon footprint. Certain types of bioplastics can be decomposed in industrial composting or in specialized environments, helping to reduce long-term environmental pollution. While bioplastics could technically replace all traditional petrochemical plastics, they currently face two key challenges: high costs and insufficient production. Furthermore, the large-scale cultivation of industrial crops to produce bioplastics can lead to significant environmental damage, including deforestation, overuse of pesticides, monoculture, and even genetically modified crops. Furthermore, while bioplastics are biodegradable, they typically require specialized composting environments to decompose. Due to the current shortage of composting facilities, much bioplastics are ultimately disposed of, like traditional plastics, by incineration or landfill. If bioplastics are mixed with traditional plastics during the recycling process, it will affect the overall recycling quality and efficiency of the plastics. These are issues that need to be considered when developing bioplastics to replace plastics.
Connecting with the national team of recycled materials to promote resource recycling
To promote a circular economy, reduce plastic waste, and increase resource recycling, the Ministry of Environment's National Resources and Recycling Administration (NRRA) convened a meeting of the Plastics Alliance Recycled Materials Promotion Group in February of this year, inviting stakeholders from upstream, midstream, and downstream sectors of the plastics recycling industry to discuss establishing a "National Recycled Materials Team." Through the Plastics Alliance, they will establish a communication platform to strengthen industry collaboration and exchange. Deputy Director-General Hsu Chi-lun of the NRRA explained that the National Recycled Materials Team will integrate the entire supply chain, including raw material suppliers, recyclers, and product manufacturers, through the Plastics Alliance to collaborate on improving technology and production capacity. NRRA will establish a management mechanism and connect stakeholders in the supply chain to promote the development and use of recycled plastics in Taiwan. Taiwan will focus on "lifestyle transformation" and "industrial transformation," promoting milestones in single-use product reduction through cross-agency collaboration and industry guidance. Furthermore, they will promote amendments to the Resource Circularity Promotion Act to provide a legal basis for plastic recycling, the proportion of recycled materials, green design, and traceability verification. The Global Plastics Pact will enter its sixth round of negotiations at the end of the year. The final outcome will involve a comprehensive transformation of the global plastics industry's production, consumption, and product design models. Taiwan's plastics industry must quickly adapt to the new normal of limiting virgin plastics and increasing recycling, and actively develop solutions that can adapt to environmental changes in order to gain a firm foothold in the global green wave.
Sources:
- September 24, 2025, [2025 3rd Taiwan Plastics Forum], Gu Yang's presentation
