Most conventional plastics are made from oil and gas and production costs have recently increased as a result of the closure of the Strait of Hormuz in the Middle East.
This means that when the price of those raw materials increases, the cost of producing plastics often also increases, creating incentives to reduce waste use, expand reuse systems, and invest in alternatives that are lower in carbon and less damaging to the environment.
© UNCTAD
why it matters
The world’s plastic economy is not just an issue of waste. This is also a climate issue.
The increased use of plastic, 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 mostly made from petrochemicals derived from oil and natural gas.
© Wikipedia/Vugar Amrullayev
Such plastics plants in Azerbaijan rely on fossil fuels.
According to the United Nations Environment Program (UNEP), plastics generate harmful greenhouse gas emissions throughout their entire lifecycle, from extraction and refinement to production, transportation and disposal.
UNEP says that if plastic production continues to increase uncontrollably, the harmful gases that cause climate change are likely to increase.
© Unsplash/Arshad Poolu
Many plastic products, such as beverage bottles, are made for one-time use only.
Where is plastic used and where is change easiest?
Plastic is used around the world because it is cheap, durable, lightweight and versatile.
- The largest share of plastic is found in packaging, including food wrappers, bottles, shopping bags and single-use containers. These are the easiest to change.
- Construction, for example, pipes, insulation, flooring and window frames, is also a large consumer of plastics (some substitutability)
- Consumer goods and textiles, polyester fabrics, toys, furniture and household items also require a lot of plastic (mixed substitutability)
- As do transportation (such as vehicle parts) and electronics. (difficult to change quickly)
- medical uses, such as SSyringes, PPE and sterile packaging are difficult to replace with non-plastic (low substitutability)
according to UNEP“We need to rethink how we produce, use and dispose of plastics.”
© UNFPA/Sufian Abdulmouti
Many medical devices made of plastic are difficult to replace with non-plastic ones.
So which plastics can realistically be replaced?
main exam is necessity vs convenience: :
- About one-third of the world’s plastic is easily replaceable. Many countries have already passed laws banning plastic shopping bags and utensils, encouraging people to shop with reusable bags and use metal or wood-based cutlery.
These changes often become economically attractive when oil prices rise.
- One third of plastics globally are partially replaceable, including in textiles, construction materials and furniture, although in some cases replacement may cause greater environmental harm overall, especially in terms of climate emissions or deforestation.
- Some plastics with important technical uses, including medical plastics and electrical parts, are almost impossible to replace.
As UNEP emphasizes“The answer is not to ban all plastics, but to eliminate unnecessary, avoidable and problematic plastics.”
© Unsplash/Calvin Sihongo
Plastic is collected for recycling in the South African city of Johannesburg.
It is worth remembering that not all plastics are equally harmful.
- Plastic insulation could reduce building emissions
- Lightweight vehicle components can reduce fuel use
Higher oil prices could spur adaptation
As virgin plastic becomes more expensive:
- Excess packaging becomes less attractive, so businesses look for cheaper alternatives
- Single-use items such as food containers lose their value advantage and can be replaced by, for example, reusable glass bottles.
- Bans and fees gain public support as do the benefits of recycling
According to UNEP, “reuse is one of the most powerful market transformations available.”
bottom line
The widespread need for plastics could keep fossil fuel demand alive, although higher oil prices could act as a hidden accelerator of change.
As fossil-based plastics become more expensive, countries around the world have a realistic path forward:
- First cut unnecessary plastic
- Expand reuse and recharge systems
- Use options where they make sense
- Decarbonize remaining essential plastics
This makes plastic not just a waste story, but part of the global energy transition.
