Most conventional plastics are made from oil and gas and production costs have increased recently as a result of the closure of the Strait of Hormuz in the Middle East.
That means when the price of those raw materials rise, the cost of producing plastic often rises too, creating incentives to reduce wasteful use, expand reuse systems and invest in alternatives that are lower in carbon and do less harm to the environment.
Why it matters
The world’s plastic economy is not just a waste issue. It is also a climate issue.
The increased use of plastics, which inevitably means more plastic pollution, is not only extremely harmful to the planet’s biodiversity but also contributes to climate change.
Oil prices, plastics and climate change
Plastics are made overwhelmingly from petrochemicals derived from oil and natural gas.
According to the UN Environment Programme (UNEP), plastics generate damaging greenhouse gas emissions across their entire lifecycle, from extraction and refining to production, transport and disposal.
UNEP says those harmful gases which are driving climate change are likely to increase if plastics production continues to rise unchecked.
Where plastics are used and where change is easiest
Plastics are used across the world because they are cheap, durable, lightweight and versatile.
According to UNEP, “we need to rethink how we produce, use and dispose of plastics.”
So which plastics can realistically be replaced?
The key test is necessity versus convenience:
These changes often become economically attractive when oil prices rise.
As UNEP emphasises, “the answer is not to ban all plastics, but to end unnecessary, avoidable and problematic plastics.”
It’s worth remembering that not all plastic is equally harmful.
Higher oil prices can drive adaptation
As virgin plastic becomes more expensive:
According to UNEP, “reuse is one of the most powerful market shifts available.”
The bottom line
The widespread need for plastics can keep fossil fuel demand alive, although higher oil prices can act as a hidden accelerator of change.
As fossil-based plastics become more expensive, countries across the world have a realistic pathway to:
That makes plastics not just a waste story, but part of the global energy transition.’
Source: United Nations
