Controlling Transboundary Trade in Plastic Waste

Policy Brief

A Centre collaborating with UN Environment Authors Dylan George Marrs Ieva Ručevska Patricia Villarrubia-Gómez Graphics prepared by Reviewers Levi Westerveld The Norwegian Environment Agency Philippe Rivière Maria Tsakona Karen Raubenheimer Photographs by Joan Fabres Wang Jiuliang CJ Van Blerk Levi Westerveld (p.14) Miles Macmillan-Lawler Ieva Ručevska (p.16)

Suggested citation: GRID-Arendal (2019). Controlling Transboundary Trade in Plastic Waste (GRID-Arendal Policy Brief). Retrieved from http://www. grida.no/activities/311

Further information about this Policy Brief can be obtained from Ieva Rucevska (Email: [email protected]).

Prepared with funding from the:

©GRID-Arendal 2019 Controlling Transboundary Trade in Scrap Plastic Waste http://www.grida.no/activities/311 Controlling Transboundary Trade in Plastic Waste

Policy Brief

Contents

4 Summary

5 Introduction to a Global Challenge

6 Flaws in the Current Global Recycling Model

8 New Players in South East Asian Scrap Plastic Markets

10 Environmental Implications

13 Human and Social Welfare

14 Regulations and Enforcement

16 Conclusions

17 Recommendations

18 References Summary

Studies estimate that at most 9% of all plastic ever produced countries report high waste mismanagement rates, such as has been recycled, with an additional 12% incinerated, India (87%), Indonesia (83%), Viet Nam (88%) and Malaysia most of it only having been produced in the last decades (57%). Jambeck et al. (2015) stressed that global scrap (Jambeck et al., 2015). If no action is taken, the remainder plastic imports and exports are not adequately represented will continue contaminating our environment in dumpsites, in these figures, which means that the amount of imported landfills, or leak into the ocean. While developed nations waste that is mismanaged remains uncertain. may boast of high plastic collection and recycling rates, the reality is often far more complex, as not all plastic placed Considering these challenges, it is important to monitor in recycling bins is actually recycled. This is because scrap and better understand the global plastic recycling sector, plastic formally registered as ´recycled´ by developed including its economic, social and environmental impacts. nations is commonly exported to emerging economies It is paramount to strengthen global regulations that for further sorting, processing and recycling. This lowers adequately control transboundary movement of scrap processing costs and avoids environmental impacts in plastic to provide greater transparency and avoid potential the country of origin, which may record an artificially high plastic leakages into the environment from the recycling recycling rate while waste importing countries in emerging sector. Further studies that identify opportunities for economies are ultimately responsible for processing the streamlining, monitoring and enforcement at a global level waste. However, waste importing countries typically lack are required. Studies should seek out current and future the necessary enforcement and facilities to properly process opportunities throughout plastic value-chains to improve this scrap plastic, resulting in ocean, air, and land pollution. the industry’s environmental performance and reduce Jambeck et al. (2015) found that many waste importing marine plastic litter.

4 Introduction to a Global Challenge

Plastics consumption per capita is rapidly growing. Global tackle transboundary challenges of plastic pollution plastic production has steadily increased to almost 350 (Raubenheimer & McIlgorm, 2018). The current regulation million tonnes per year in 2017, growing three times categorizes scrap plastic as waste that is not subject to faster than the global gross domestic product (Plastics any controls, notifications or special agreements. This Europe, 2018). When properly managed, plastic recycling promotes mismanagement and weak accountability from minimizes resource pressures and reduces plastic scrap plastic exporters and jeopardizes the environmental leakages into the environment. It is fundamental in performance of low-grade plastic recycling. pursuing a circular economy. Almost all types of plastics are technically recyclable. However, the extent to which Historically, China has been the main destination for much of they are recycled depends upon available technology, the world´s scrap plastic. This imported waste often ended sorting and logistics. Furthermore, just as any other up in low cost recycling facilities with poor environmental globally-traded commodity, macroeconomic indicators standards, posing significant threats to both terrestrial and and market conditions influence plastics recycling and marine environments. In 2013, China began implementing scrap trade. enforcement actions against incoming waste and scrap shipments, and in 2017 China began enforcing a strict trade Globally, opportunities and challenges linked to scrap restriction that bans Chinese recyclers from importing 24 plastic trade and recycling are increasing, creating complex types of scrap (World Trade Organization, 2017). As a result, end-of-lifecycles for plastic products as many countries China decreased its scrap plastic imports by 93% from 2017 are increasing plastic recycling targets. For instance, a to 2018 (Figure 2). number of countries in Europe and the USA have ambitious recycling targets that heavily rely on transboundary The impacts of China’s trade restriction have resonated movement of scrap plastic, largely characterized by flows throughout the global recycling industry. China went of plastic waste to emerging economies in Asia. This means from importing 60% of scrap plastic generated by the G7 that despite the low overall recycling rates cited above, countries to less than 10% in 2018 (Hook & Reed, 2018). international trade in waste for recycling has boomed: This poses significant challenges to developed and emerging Worldwide trade of recyclable plastics is a US$5 billion economies. For example, in developed countries, new dollar per-year industry that spans the globe (Bureau of recipients for scrap plastic need to be found. In 2017 International Recycling, 2008). for example, a stockpile of 23,000 tonnes of unsorted imported scrap plastic was open-burned in Latvia. This is Transboundary movement of plastic waste for disposal because appropriate recycling facilities were not available and recycling is governed primarily by the Basel in the country and the importer was not able to trade scrap Convention on the Control of Transboundary Movements plastic to China due to their change in policy.* In emerging of Hazardous Wastes and their Disposal. With 170 parties, economies, one of the most tangible consequences of the Basel Convention is the most comprehensive global China’s trade restrictions is the spill-over effect of scrap environmental treaty regulating the international waste plastic imports to neighbouring countries, further straining trade and provides one of the best opportunities to domestic plastic waste processing.

* Personal communication with the Latvian State Environmental Service (March 25, 2019)

5 Flaws in the Current Global Recycling Model

Concerns around the global trade in scrap plastic are existing waste management practices at the operational growing. Factors that promote inadequate waste disposal level, poor socio-economic conditions and the lack of a include the lack of enforcement, increased consumerism, functioning market for secondary plastic material.

Drivers of plastic leakages from collected waste

Policy • High recycling targets in developed countries that heavily rely on transboundary movement. • Emerging trade restrictions in recipient countries starting with China and followed by other countries. • Under current regulations, scrap plastic does not require control for the transboundary movement. • Lack of traceability or obligation for exporters to demonstrate the environmental performance of exported waste recycling.

Compliance • Existing international trade codes do not match control requirements. This promotes low accountability and transparency throughout the value chain. • Weak enforcement of pollution control in recipient countries. • Competent authorities in waste importing countries lack capacity to monitor the amount of waste entering their territories.

Figure 1

Impacts of plastic scrap transboundary movement Approximately 5% to 20 % of imported plastic scrap in emerging economies in the Global South has no market value and ends up in landfills and open dumps or is burnt. Plastic scraps are traded continuously between businesses across countries such as in the EU. This trade leads to GHG emissions in the air and escapes Toxic fumes Since early 2018, China implemented restrictions soil and water of macro and micro-plastics into the terrestrial and pollution GHG marine environments during transportation. on waste imports which effectively shifted the geography of plastic scrap trade. CHINA GHG Toxic fumes CLOSED (UNREGULATED) LANDFILL OPEN AIR DUMPING BURNING The trade may move through different transit Greenhouse countries, where leakage of plastic is possible LOW-COST discarded plastic waste ... gases (GHG) through dumping, landfill or burning. HONG KONG RECYCLING FACILITIES BROKER BROKER GHG GHG TRANSIT COUNTRY BROKER GHG 1 SORTING 2 SHREDDING recycled plastic waste ... THAILAND GHG GHG 2 VIET NAM The recycling of plastic scrap from developed countries in Asia ... 3 is generally carried out by low-cost recycling facilities, often 3 WASHING domestically, with improvised or poor quality equipment.

MOST COMMON 1 In 2018, Europe exported about ROUTE IN 2017 In 2018, Malaysia, Thailand and Viet Nam became polluted air 1.18 million tonnes of plastic scrap MALAYSIA GHG 4 MELTING to Asian countries, worth more than the largest importing countries of plastic scrap from Toxic fumes developed countries in Europe and North America. 267 million euros. NEW TRADING ROUTE IN 2018 BROKER plastic waste producers leakage risk CARGO SHIP Some containers labeled for plastic scrap 5 PELLETING carry e-waste or other contaminated or toxic waste and are shipped illegally. lowest highest polluted soil polluted water

By Levi Westerveld & Patricia Villarrubia-Gómez. GRID-Arendal (2019). Sources: Bing et al. (2015); Brooks et al. (2018); Eurostat; Geyer et al. (2017); Japan e-Stat; Michida (2011); Statistics Canada; Swiss Statistical Office; US Census Bureau; Verma et al. (2016). * This graphic considers impacts of plastic waste trade only. Plastic pollution itself has many more well documented effects on both land and marine environments and wildlife among others.

6 Drivers of plastic leakages from collected waste (continued)

Market indicators • Low grade, mixed, unsorted and contaminated scrap plastics are costly to process and have little or no market value. • Low oil and gas prices make virgin plastic cheap and undermine the market for secondary plastic feedstock. • Global trade deficit with China lowers return shipping costs. • Low demand for recycled feedstock and materials. • Lower environmental controls, working standards and cheaper labour make it cost effective to export waste to emerging economies.

Waste management, • Insufficient recycling and technological capacity along with high capital and operational costs transportation and in industrialised countries. technology • Despite advancing methodologies to recycle plastic, there are still technological shortfalls that make sorting scrap plastic challenging (Bureau of International Recycling, 2008). • Recycling bias amongst developed nations. Within the EU, domestic plastic recycling is selective toward plastics that are easy to collect and recycle. Yet, this represents only a small fraction of plastics consumed. The remainder is generally exported. • Delays in transportation trade hubs e.g., over-supply at ports in emerging scrap plastic markets.

Culture • Single-use plastic consumerism trends. • While some plastic products such as building materials have long lifecycles, the majority of plastic products have a short lifetime lasting between one day and two years. • Lack of a universally agreed definition of “recyclable” thwarts commitments to promote changes among consumers.

7 New Players in South East Asian Scrap Plastic Markets

China´s labour surplus economy allowed the country to Transportation hubs around the world report increasing absorb developed countries’ waste, commonly through rates of abandoned containers. Some studies link small scale operations-even at a household level. Yet, as abandoned containers and illegal scrap plastic activities, highlighted above, strict import restrictions on plastic waste where waste containers are abandoned when importers are now in place, including bans on 24 types of scraps, such are not licensed, have expired licenses, or have mis- as Polyethylene terephthalate (PET), Polyethylene (PE), declared containers. For example, UK P&I (2018) estimate Polyvinyl chloride (PVC) and Polystyrene (PS), decreasing there are approximately 1,600 and 1,400 containers of scrap plastic imports by 93% from 2017 to 2018 (Figure 2). scrap or waste cargo at Laem Chabang Port and Bangkok port respectively. When inspected by customs officials, One of the most tangible consequences of China’s trade the majority of these were abandoned and illegal. In 2018 barriers is the spill-over effect of scrap plastic in the region. Viet Nam reported that surging waste imports caused a Minor players in the global arena such as India, Indonesia, backlog of 6,000 containers at its entry ports (Vu, Sipalan, Malaysia, Taiwan, and Thailand are now increasingly & Stanway, 2018). In February 2019, Malaysian customs receiving scrap plastic imports. The most significant case services announced that out of a shipment of 120 containers may be Thailand. In 2017, the United Kingdom (UK) shipped of waste to Penang Port, many were undeclared or falsely 2,420 tonnes of scrap plastic to Thailand. This drastically declared (Dermawan, 2019). As a result, these containers increased to 14,379 tonnes in 2018 (European Commission, were stranded in Malaysia. 2019). Despite the increase in the uptake of scrap plastic by neighbouring countries, there is still a global deficit in China’s trade restrictions are causing ripple effects in traded waste (Figure 2). global scrap plastic markets. As the industry adjusts to China’s import barrier, new waste destinations are in demand as countries place new restrictions on imports. New markets will likely evolve following these changes. For example, Malaysia has become the top importer of scrap plastic from G7 countries (Figure 3). To mitigate this sudden uptake of foreign scrap plastic, Malaysian officials announced plans to phase out imports within three years. The Malaysian government has implemented tariffs on scrap plastic, tightening requirements for waste processing permits and intensifying searches for illegal waste operators (Rosengren & Pyzyk, 2018). Similar trends are emerging throughout Asia. Importers such as Viet Nam, India, Taiwan and Indonesia are actively trying to reduce scrap plastic imports (Figure 4). As a result, recyclers are looking at new locations like Central America and the Caribbean to process and export scrap plastic (Toloken 2019). While countries such as Ghana and Nigeria are established e-waste importing countries, Africa is a relatively unexplored market for scrap plastic. While there are attempts to seek new destinations for scrap plastic, the market remains fragile and stagnated. As such, certain emerging economies are rapidly expanding their capacity to process plastic waste domestically.

8 Figure 2 Export of G7 countries’ plastic waste overseas in 2017 and 2018

Atlantic Atlantic Ocean Ocean France United States France United States 2017 2018 (’000 tonnes) 2017 2018 (’000 tonnes) China2017 (78) 1 2018Malaysia (’000 (38) tonnes) China (558)2017 1 2018Malaysia (’000 (201) tonnes) HongChina Kong (37)(78) 21 HongMalaysia Kong (38) (13) HongChina Kong (558)(373) 21 MalaysiaIndia (133) (201) HongMalaysia Kong (37)(15) 32 VietHong Nam Kong (12) (13) United Kingdom HongViet KongNam (373)(137) 32 HongIndia (133)Kong (121) MalaysiaViet Nam (15) (6) 43 VietIndonesia Nam (12) (8) United Kingdom Viet IndiaNam (137)(123) 43 ThailandHong Kong (106) (121) Viet IndiaNam (2)(6) 54 IndonesiaTaiwan (5) (8) 2017 2018 (’000 tonnes) Italy MalaysiaIndia (123)(121) 54 VietThailand Nam (106)(75) India (2) 5 Taiwan (5) China (164)2017 1 Malaysia2018 (’000 (102) tonnes) Italy Malaysia (121) 5 Viet Nam (75) 2017 2018 (’000 tonnes) MalaysiaChina (164) (91) 21 TurkeyMalaysia (80) (102) Malaysia (91) 2 Turkey (80) China2017 (40) 1 2018Malaysia (’000 (13) tonnes) Hong Kong (78) 3 Indonesia (72) Canada Hong Kong (78) 3 Indonesia (72) ChinaYemen (40) (9) 21 TurkeyMalaysia (7) (13) Viet Nam (54) 4 Taiwan (50) Canada Viet Nam (54) 4 Taiwan (50) 2017 2018 (’000 tonnes) Saudi YemenArabia (7)(9) 32 ChinaTurkey (6)(7) Turkey (41) 5 Hong Kong (40) Turkey (41) 5 Hong Kong (40) China2017 (27) 1 Malaysia2018 (’000 (11) tonnes) UnitedSaudi ArabiaStates (6)(7) 43 ChinaViet Nam (6) (6) HonkChina Kong (23)(27) 21 IndiaMalaysia (8) (11) United States (6) 54 Viet Nam (6) Viet Nam (6) Yemen (5) Germany Honk Kong (23) 2 India (8) Viet Nam (6) 5 Yemen (5) Germany Malaysia (11) 3 Hong Kong (7) 2017 2018 (’000 tonnes) MalaysiaViet Nam (11) (6) 43 HongThailand Kong (5) (7) China (345)2017 1 2018Malaysia (’000 (131) tonnes) Viet IndiaNam (6) 54 VietThailand Nam (5)(4) HongChina Kong (345) (99) 21 HongMalaysia Kong (131) (72) India (6) 5 Viet Nam (4) HongMalaysia Kong (75)(99) 32 IndiaHong (67)Kong (72) VietMalaysia Nam (75)(69) 43 IndiaIndonesia (67) (64) In 2018, 59 000 containers of plastic Viet IndiaNam (42)(69) 54 IndonesiaViet Nam (57) (64) scrapIn 2018 were, 59 shipped000 containers from the of plasticUnited India (42) 5 Viet Nam (57) scrap were Statesshipped and from Canada the toUnited Asia Turkey +113% States and Canada to Asia Turkey +113%

In 2018, approximately 70 000 containers of plasticIn 2018 scrap, approximately were shipped 70 from 000 France, containers the UK, of Since early 2018, China implemented Italyplastic and scrap Germany were toshipped Asia* from France, the UK, restrictionsSince early 2018,on waste China imports implemented which Italy and Germany to Asia* effectivelyrestrictions shiftedon waste the importsgeography which of plasticeffectively scrap shifted trade. the geography of plastic scrap trade.

Indian Indian Ocean Ocean Pacific 2 Pacific 2 Ocean Ocean Korea +211% Import of plastic scrap Korea +211% Japan Importfrom all of G7 plastic countries scrap Japan India +26% 2017 2018 (’000 tonnes) from(2017 all G7, 2018 countries)** India +26% China -93% 2017 2018 (’000 tonnes) (2017, 2018)** China -93% China (749) 1 Malaysia (220) 1.5 million tonnes HongChina Kong (749)(275) 21 MalaysiaThailand (188)(220) 1.5 million tonnes HongViet KongNam (275)(126) 32 ThailandTaiwan (177) (188) VietTaiwan Nam (126) (91) 43 VietTaiwan Nam (177) (123) Thailand +221% MalaysiaTaiwan (91)(75) 54 KoreaViet Nam (101) (123) Thailand +221% Taiwan +116% Malaysia (75) 5 Korea (101) Hong KongTaiwan -65% +116% Hong Kong -65% Viet Nam -26% 1 Viet Nam -26% 1

Malaysia +82% 2017 Malaysia +82% 2017 2018 Indonesia +169% 2018 Indonesia +169% 0.5 0.5 decrease in exports from 2017 to 2018 decrease in exports from 2017 to 2018 increase in exports from 2017 to 2018 0.25 increase in exports from 2017 to 2018 0.25 * Based on data from Association of Plastic Recyclers on 0.1 plastic* Based bales on data density, from weAssociation estimate ofthat Plastic a 40 Recyclersft. container on ** Only countries and regions that imported > 0.1 mil. tonnes 0.1 plastic bales density, we estimate that a 40 ft. container ** Only countries and regions that imported > 0.1 mil. tonnes 0 contains approximately 15 tonnes of plastic scrap. of plastic scrap in 2018 excluding G7 and EU countries. 0 contains approximately 15 tonnes of plastic scrap. of plastic scrap in 2018 excluding G7 and EU countries. Sources: Eurostat, Japan e-Stat, Statistics Canada, Swiss Statistical Office, US Census Bureau, Blood (Financial Times, 2018). By Levi Westerveld & Philippe Rivière. GRID-Arendal (2019). Sources: Eurostat, Japan e-Stat, Statistics Canada, Swiss Statistical Office, US Census Bureau, Blood (Financial Times, 2018). By Levi Westerveld & Philippe Rivière. GRID-Arendal (2019).

9 Environmental Implications The 15 largest importers of G7 plastic waste % of inadequately managed waste* 0 1 10 20 30 40 50 60 70 80 90 100 Process indicators streams. Once plastic is sorted and cleaned it is finally Ocean Conservancy (2015) estimated that 25% of all marine shredded, melted and reformed into granules. Innovative plastic litter is leaked from within waste management recyclers in developed countries have begun employing systems. Recycling is an intensive process in the value advanced methods such as chemical recycling. Chemical * % of inadequately waste management refers to waste that is not formally managed and includes chain of scrap plastic. Leakage into the environment is recycling, also called feedstock recycling, uses innovative 300 000 tonnes disposal (or burning) in dumps or open, uncontrolled Viet Nam 4 possible at all steps. Generally, rather than sorted bales technologies that convert post-consumer plastic into landfills, where it is not fully contained. The figure is - 26 % that are ready for processing, recyclers in importing valuable chemicals. Before chemical recycling can be modeled for each countries by Jambeck et al. (2015) countries receive shipments of mixed waste. As a result, upscaled to an industrial scale, its environmental, social using data on waste disposal methods, economic 255 000 tonnes sorting is an important component of recycling processes and economic impacts must be assessed. Moreover, as a classification and geographic region (as defined by India 7 + 26 % where all unwanted components are removed. It should fairly new process, chemical recycling firstly needs to be the World Bank). be noted that approximately 5% to 20% of imported scrap regulated (Plastic Recylers Europe, 2018). 192 000 tonnes plastic in emerging economies has little or no market value G7 countries are the United States, Canada, Japan, Indonesia 9 + 169 % (Chenkee, 2008; Retamal, 2019) and therefore, are often Recycling in waste importing countries is done in low- France, the United Kingdom, Germany and Italy. inappropriately disposed (Bing, et al., 2015). Overburdened, cost and low-technology processing facilities with poor 320 000 tonnes informal waste operators that operate under weak regulations safety standards. For example, part of Viet Nam’s scrap In 2018, because of China’s significant decrease in Thailand 2 imports of plastic scrap, other Asian countries + 221 % and enforcement often illegally dispose of or burn unwanted plastic imports are sold to craft villages to be processed. drastically increased their imports, many of whom plastic waste. Unregulated, open-air burning poses Viet Nam’s craft villages are settlements with economies have inadequate waste management systems in place. 131 000 tonnes environmental health risks as the emissions are highly toxic. that predominantly rely on production and processing. Craft China 14 - 93 % villages have been a reliable livelihood source for many After sorting, selected plastic is washed. Washing plastic households for decades. There are approximately 2,800 craft imports of plastic waste has the potential to contaminate water systems. villages in Viet Nam (CREM, 2018). In 2015, 70 craft villages scrap in 2018 Washing processes are typically mechanical and water- processing metal, paper, rubber and plastic wastes were XXX XXX tonnes 717 000 tonnes intensive. As well as leaking visible macro plastics, Name N Malaysia 1 identified. Retamal et al. (2019) identifies a case in one + N % percent change + 82 % unknown amounts of microplastics and chemicals craft village where 900 households rely predominantly from 2017 to 2018 are released into wastewater systems or directly into on scrap plastic processing to secure livelihood.

166 000 tonnes Turkey 10 + 113 % Emerging economies

119 000 tonnes Developed countries Poland 15 + 10 % and regions* * according to the UN’s 309 000 tonnes country classification (2014). Hong Kong 3 - 65 %

296 000 tonnes United States 5 + 2 %

295 000 tonnes Taiwan 6 + 116 % Countries with 0% inadequately managed waste do not necessarily have the best waste management practices. 206 000 tonnes Plastic disposed in landfills in developed countries is 8 Netherlands - 7 % considered an ‘adequate’ waste disposal method in Jambeck et al. (2015). 152 000 tonnes Korea 11 + 211 % 134 000 tonnes Canada 12 - 3 % 134 000 tonnes Spain 13 + 21 %

Sources: Eurostat; Japan e-Stat; Jambeck et al. (2015); Statistics Canada; Swiss Statistical Office; US Census Bureau. By Levi Westerveld & Philippe Rivière. GRID-Arendal (2019).

10 Figure 3 The 15 largest importers of G7 plastic waste % of inadequately managed waste* 0 1 10 20 30 40 50 60 70 80 90 100

* % of inadequately waste management refers to waste that is not formally managed and includes 300 000 tonnes disposal (or burning) in dumps or open, uncontrolled Viet Nam 4 landfills, where it is not fully contained. The figure is - 26 % modeled for each countries by Jambeck et al. (2015) using data on waste disposal methods, economic 255 000 tonnes classification and geographic region (as defined by India 7 + 26 % the World Bank). 192 000 tonnes G7 countries are the United States, Canada, Japan, Indonesia 9 + 169 % France, the United Kingdom, Germany and Italy.

320 000 tonnes In 2018, because of China’s significant decrease in Thailand 2 imports of plastic scrap, other Asian countries + 221 % drastically increased their imports, many of whom have inadequate waste management systems in place. 131 000 tonnes China 14 - 93 %

imports of plastic scrap in 2018 XXX XXX tonnes 717 000 tonnes Name N Malaysia 1 + N % percent change + 82 % from 2017 to 2018

166 000 tonnes Turkey 10 + 113 % Emerging economies

119 000 tonnes Developed countries Poland 15 + 10 % and regions* * according to the UN’s 309 000 tonnes country classification (2014). Hong Kong 3 - 65 %

296 000 tonnes United States 5 + 2 %

Sources: Eurostat; Japan e-Stat; Jambeck et al. (2015); Statistics Canada; Swiss Statistical Office; US Census Bureau. By Levi Westerveld & Philippe Rivière. GRID-Arendal (2019).

11 Waste management in Viet Nam’s craft villages is informal Mavropoulos and Newman (2015) China, North America, and waste inputs are sporadic and mixed. Informal plastic and Europe consumed the most plastic, respectively 20%, recycling leads to serious degradation of air and water 21%, and 18%. These regions also produce most of the around craft villages (Chenkee, 2008; CREM, 2018; Retamal world’s plastic, 28%, 19% and 19% respectively. While et al., 2019). consumption and production trends among these countries are somewhat balanced, their waste mismanagement Global indicators trends are significantly more one-sided. For example, in a According to Velis (2014) plastics leakage results from modelling study of the leakage of plastic from mismanaged three systemic failures. Firstly, poor waste collection waste in the coastal zone (up to 50 kms from the coastline) and management infrastructure in the global South, in 192 countries, Jambeck et al. (2015) estimated that China, coupled with insufficient monitoring and law enforcement North America and Europe leaked 28%, 1% and 0.9% of the mechanisms. Secondly, unstable markets for scrap plastic world’s plastic litter in 2010 respectively. In fact, Ocean do not incentivize polluting stakeholders to fully utilize Conservancy (2015) calculates that 55% to 60% of all plastic scrap plastic. Thirdly, the plastic recycling industry in leakage into the ocean originates in five Asian states: China, emerging economies lacks understanding of the technical Indonesia, the Philippines, Thailand and Viet Nam. challenges, the effects of social consumption patterns and littering behaviours on solid waste generation. As a result, Brooks et al. (2018) estimated that 80% to 90% of all impacts of plastic pollution are far-reaching. In marine marine plastic litter originates from land-based sources. environments, these include impacts such as ingestion Therefore, stemming marine plastic litter requires that we by marine coastal birds, entanglement, and the effects of understand the terrestrial pathways that transport scrap microplastics on marine life. Moreover, by acting as a raft, plastic into the ocean. Jambeck et al. (2015) estimated that marine plastic pollution can also spread pathogens and between 5–12 million tonnes of plastic enter the ocean non-native species (UNEP and GRID-Arendal, 2016). On a each year. Harbours and ports are commonly identified molecular level, contamination through the plastisphere hotspots for marine plastic pollution. However, considering remains somewhat unknown. Plastic additives with low the transboundary nature of scrap plastic networks, molecular volumes can be absorbed into living tissues, process-leakages in waste importing countries warrant entering the food chain, affecting human health and food consideration. Recycling facilities in waste importing safety. Yet, while the impacts of marine plastic litter are countries are usually in the vicinity of trading hubs; well-documented, determining how transboundary plastic typically, short distances from ports to be reached by trucks trade contributes to these impacts remains unresolved. or sometimes by boats. This increases the likelihood of plastic litter reaching the ocean. As many recycling facilities Analysing certain macroeconomic indicators gives some are located on river banks leakage can also lower the insight into which regions are major marine plastic quality of drinking water. Additionally, dumpsites used by pollution contributors. In 2015, three regions dominated informal recyclers are typically near rivers which transport global plastic production and consumption. According to waste to the ocean.

12 Human and Social Welfare

Plastic recycling provides economic opportunities through in their private homes lacking appropriate equipment and job creation, typically in the informal sector. The short-term adequate access to running water and electricity. As informal economic opportunities of unregulated plastic recycling recycling is commonly practiced at the household level, contribute to the development of informal recycling facilities. children work and play around scrap plastic and informal As such, poverty traps within affected communities are incineration sites (Wang, 2016). This poses great risks to reinforced as their natural environments continue degrading. their human health and welfare. Moreover, the income For example, livelihoods created from informal waste households receive after sorting, cleaning, processing, processing in Viet Nam support thousands of households melting and pelleting recycled plastic might keep informal and contribute to developing rural areas (Chenkee, 2008). recyclers in the poverty-cycle.

The long-term costs of unregulated plastic recycling Typically, recyclers in the informal scrap plastic sector can industries to human and environmental health outweigh only afford low-technology processing facilities. These short term benefits. In certain areas of China, informal achieve sub-optimal performance levels and contribute plastic recycling operations have critically polluted surface significant impacts on the environment through elevated and ground waters. This makes safe drinking water for local heat, noise and emissions to air, soil and water. Informal inhabitants scarce (Jing, 2010). For example, Wen’an county recycling settlements do not only burn plastics to dispose of used to be the centre of scrap plastic recycling in China. unwanted wastes, but also to ignite and fuel the machinery Before shutting down all unlicensed recycling facilities in necessary to melt and pelletise the scrap into recycled 2010, surface and groundwater had been contaminated to plastic. Incineration of plastic occurs in open air, or semi- such a level that the local community had to pump drinking open rooms in which the toxic fumes and airborne pollutants water from 500 meters underground (Jing, 2010). are concentrated and inhaled by workers without any protective equipment. Unregulated incineration releases Informal plastic recycling facilities are often family-run chemicals into the air, causing serious lung damage and businesses. Informal recyclers include part-time workers other long-term health problems to the local communities and former farmers from rural areas, who process waste (Verma et al., 2016).

13 Regulations and Enforcement

The Basel Convention on the Control of Transboundary systems and is based on four key stages: (1) notification; Movements of Hazardous Wastes and their Disposal is (2) consent and issuance of movement document; (3) currently the only global environmental treaty regulating transboundary movement; and, (4) confirmation of disposal trade in hazardous and other wastes. The Basel Convention (Basel Convention, 2011). By strengthening procedures for requires its contracting parties to ensure that hazardous mixed and low-grade plastic, the Basel Convention would and other wastes are managed and disposed of in an better regulate movement among its parties and in special environmentally sound manner. Moreover, all parties are agreements between party and non-party states. obliged to prevent and punish illegal traffic in hazardous and other wastes. In summary, the Basel Convention When considering plastic waste, different sub-categories regulates the global flow of waste. may trigger notification processes. For example, transboundary movement of hazardous plastic waste and The Basel Convention contains provisions that control household plastic waste requires that trading nations are transboundary movement of household and hazardous scrap notified. Comparatively, all other scrap plastic is currently plastic. By requiring Prior Informed Consent between exporting considered a “green waste”. As such, it is traded freely and and importing parties, the Convention seeks to ensure that without any particular control. It can cross borders without competent authorities consent to the trade. Prior Informed any notifications or special agreements. On June 8th, 2018 Consent is determined by a waste shipment’s classification. the Secretariat of the Basel Convention communicated to all This forms the heart of the Basel Convention control its parties a proposal for the addition or removal of waste

14 categories within Annexes II, VIII and IX as communicated by violations. For example, establishing waste trading and the Government of Norway. The amendments are proposed recycling companies is relatively simple, despite requiring to increase the effectiveness of the Convention with regard highly technical knowledge to ensure operations take place to the trade in scrap plastic. in an environmentally sustainable manner. Paradoxically, it is extremely challenging for competent authorities to Currently, unsorted and contaminated scrap plastic are monitor numerous, potentially incompetent actors. These traded without any specific control or Prior Informed complexities promote waste trade violations possibly in Consent. According to the European Union Network for each step of the value chain (Ručevska et al., 2015). the Implementation and Enforcement of Environmental Law (IMPEL), plastic is among the most common materials In response to China’s import restrictions, shipping involved in violations of the waste shipment regulation. ports in neighbouring countries are facing over-capacity For instance, during a European inspection project carried and containers of foreign waste are not being handled out in 2014 and 2015, scrap plastic streams accounted appropriately. As a result, a number of countries have for 13% of total transport violations (IMPEL, 2015). It is introduced temporary trade restrictions for scrap plastic or however difficult to monitor and control waste shipments. have temporarily stopped issuing import permits (Figure 4). The trade routes for such waste may be very complex This has resulted in global market fragility and uncertainty, with many traders, mediators and transport companies placing the end-of-life treatment of many tonnes of scrap involved. These complexities promote waste shipment plastic at risk annually.

Figure 4 Important milestones in the transboundary trade of plastic scrap

Jan 2017 China campaigns for its National Sword operation Feb 17

Jan 2018 China’s restricts waste imports Feb 18 China announces Blue Sky campaign targeting illegal imports of banned materials Mar 18 Apr 18 Indonesian customs strengthens inspection protocol for non-hazardous and non-toxic waste Thailand temporarily bans imports of plastic recyclables May 18 Norway submits proposal to ammend Annexes II, VIII Jun 18 China proposes a complete ban on importing plastic and IX of the Basel Convention Jul 18 recycling – effective in 2020 Malaysia stops issuing import permits for plastic scraps China imposes a 25% tariff on scrap imports from the US Aug 18 Thailand proposes ban on plastic scrap recycling by 2020 Sep 18 Viet Nam vows to track down and prosecute owners of Oct 18 Taiwan limits plastic imports to post-industial or single abandoned containers piling up at its ports material shipments only Nov 18 Malaysia aims to ban plastic imports within three years Dec 18 Jan 2019 Feb 19 Mar 19 India prohibits imports of solid plastic waste

Sources: Cotecna (2018); Maile (2019); Rosengren & Pyzyk (2018); Staub (2018); Szczepanski (2018); Thai Public Broadcasting Service (2019). By Levi Westerveld. GRID-Arendal (2019).

15 Conclusions

The potential for growth in the plastics recycling industry is enormous. Plastic recycling rates are estimated to be only 9% (Brooks et al., 2018). Some regions such as the EU have set high recycling targets to reduce waste and create a pathway for sustainable production and consumption towards a new paradigm of circular material use. Meeting these targets depends on soundly managed transboundary movement of scrap plastic for the foreseeable future. To better deal with the environmental consequences of the global scrap plastic trade, this movement needs to be better regulated and adequate systems must exist in recipient countries to deal with imported waste.

While plastic recycling minimizes pressure associated with natural resource exploitation and reduces waste being discarded in landfills or leaked to the environment, it carries risks. The economic feasibility of recycling many wastes greatly depends on transboundary movement which is regulated by the Basel Convention. Low grade scrap plastic is often traded to emerging economies for recycling at a lower cost, which increases profitability at the expense of poor environmental, human health and safety compliance. Recycling facilities in destination lowlands. Consequently, leakage of unwanted plastics and countries are often located short distances from large processing residues and chemicals into freshwater and trade hubs mostly situated on riverbanks and coastal marine environments is particularly concerning.

16 Recommendations

Over the last decade, global efforts to shed light on the Improving domestic plastic recycling processes in high challenges and opportunities in the global plastic recycling waste generating countries will alleviate environmental industry have increased. China’s trade barriers have burdens on emerging economies. Enhancing technologies drastically impacted global trade patterns of scrap plastic. or installing advanced sorting processes at plastic recycling facilities in exporting countries will increase the industry’s Better control over transboundary movement of scrap efficiency globally and minimize leakages into the plastic streams is critical to addressing pollution issues environment. Norway’s proposed amendments to Annexes including marine plastic litter. In the current global II, VIII and IX of the Basel Convention aim to reduce sorting model, waste exporting countries have little knowledge of in importing countries by obligating exporting countries to their shipments’ fate once they depart their ports. Thus, sort scrap plastics and remove contaminants. enhancing traceability and accountability throughout the global plastic end-of-life value chain is essential. Reaching Enhancing end-markets for secondary materials will this objective requires the strengthening of global scrap motivate increased efforts to better collect and process scrap plastic trade policies and regulation. plastic. Strengthening global contamination standards, converting scrap plastic into granules for recycled products Strengthening global scrap plastic trading policies requires will be more economically viable. Furthermore, regulations more exhaustive Prior Informed Consent procedures that favour products manufactured from recycled materials for mixed and low-grade plastics. Strengthening can boost the market of secondary materials. procedures under the Basel Convention would ensure scrap plastic exports are monitored to increase Finally, the transboundary and complex nature of scrap environmental accountability of plastic recycling. To avoid plastic trade need to be better monitored and the economic, overburdening customs officials at entry and exit points, social and environmental impacts of the plastics recycling fast track notification systems for approved categories sector on local and global levels be analyzed. Improved of waste should be developed in parallel with stronger information and data gathering will promote informed control mechanisms that fully integrate with the Basel decision making. Convention’s directives.

17 Reference List

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Plastics consumption per capita is rapidly growing. Global plastic production has steadily increased to almost 350 million tonnes per year in 2017, growing three times faster than the global gross domestic product. When properly managed, plastic recycling minimizes resource pressures and reduces plastic leakages into the environment. It is fundamental towards pursuing a circular economy and mitigating plastic pollution. Indeed, almost all types of plastics are technically recyclable.

Many countries are increasing plastic recycling targets. For instance, a number of countries in Europe and the USA have ambitious recycling targets that heavily rely on transboundary movement of scrap plastic. Low grade scrap plastic is often traded to emerging economies for recycling at a lower cost, which increases profitability at the expense of poor environmental, human health and safety compliance. Better control over transboundary movement of scrap plastic streams is critical to addressing pollution issues including marine plastic litter.

However, the extent to which they are recycled depends upon available technology, sorting and logistics. Just as any other globally-traded commodity, macroeconomic indicators and market conditions influence plastics recycling and scrap trade.