CEO group calls for governments to agree on treaty to end plastic pollution

A group of CEOs of multinational companies has published a joint letter ahead of the UN Environment Programme’s (UNEP’s) fifth session of the Intergovernmental Negotiating Committee (INC-5) on plastic pollution, calling for governments to agree on a treaty to end plastic pollution, said Chemweek.

The companies belong to the Business Coalition for a Global Plastics Treaty. The CEOs called on policymakers to implement direct regulatory measures that would improve the plastic circular economy.

The joint letter said that a treaty based on voluntary measures would “create further fragmentation in the regulatory landscape for business, leading to increased cost and complexity.” The signatories of the letter seek a treaty that introduces global criteria for the phasing out of “chemicals of concern,” approaches for the circular product design of plastic products, common principles for the effective implementation of Extended Producer Responsibility (EPR) schemes and a mandate for the treaty’s governing body to strengthen the agreement over time.

“We are working to transform our business models to catalyze a circular economy in which plastic never becomes waste or pollution, and the value of products and materials is retained in the economy,” the letter said. “There is already significant alignment on these topics through voluntary industry initiatives, however, it is clear that voluntary efforts alone are not enough to address plastic pollution at scale.”

The letter was signed by the CEOs of plastics producers such as Borealis AG; packaging producers such as ALPLA Group; plastics converters such as Berry Global Inc.; and major downstream brand owners such as PepsiCo, Mars, Nestle and Danone.

The last round of talks, the fourth session or INC-4, took place in April 2024 at Ottawa. Disagreements over pricing caps on virgin polymers meant that no agreement could be reached.

Following INC-4, participants in the discussion, such as the Ellen MacArthur Foundation, Unilever, Opsomer and the Plastics Europe trade association, called for collaboration and urged delegates to refocus efforts on relevant discussions during intersessional work ahead of INC-5.

INC-5 will be held at Busan, South Korea, between Nov. 25 and Dec. 1, with regional consultations set for Nov. 24.

Regulation has been cited by a number of players across global circularity markets as critical to establishing broader commoditization of sustainable plastic markets, solidifying demand for recycled polymers and facilitating a transition to a circular economy.

Demand for recycled plastics has been clipped across the last 18 months due to severely weak cost-competitiveness against virgin material and broader macroeconomic pressures, which have put cost-cutting at the forefront of consumer attention. Mandated inclusion targets and regulatory intervention are commonly cited as solutions to the issue, allowing for a more consistent consumer base and more consistent procurement from a wider range of downstream buyers.

“All recycled products are seeing efforts to bolster the market, but demand remains weak,” a distributor told S&P Global Commodity Insights. “Prime is very available, quite cheap, and many recycled grades are more expensive without the legislation, people don’t use the material.”

European recycled high-density polyethylene pellets have averaged a €578.5 per metric ton premium to virgin material across the fourth quarter of 2024, up 4% on the quarter and down 9% on the year.

Similar calls for increased government intervention in the sector have been made across 2024. The European recycled polymers industry organization, Plastics Recyclers Europe (PRE), called on EU institutions to take action in establishing a circular market for plastic waste, citing ongoing downward pricing trends and weak fundamentals across European markets as concerns. PRE warned in a press release on Oct. 24 that Europe’s recycled plastic markets could face plant shutdowns and potential industry collapse if pressures from weak demand, dwindling investments and competitive imports are not addressed.

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The authorities of Switzerland have made a decision to join certain sanctions imposed by the European Union on Belarus on June 29, 2024, the Swiss government said in a statement on Wednesday, as per Interfax.

"On October 30, the Federal Council decided to adopt further sanctions against Belarus," the statement said.

The new measures will enter into effect on October 31.

The sanctions which Switzerland joins include the ban on investments in companies of the Belarusian energy sector, the ban on imports of gold, diamonds, helium, and natural resources from Belarus, the ban on exports of luxury goods to Belarus, and others.

At the same time, Switzerland decided not to join all imposed sanctions, for instance, it will not force its businesses to ensure that their subsidiaries in third countries do not undermine the EU's sanctions.

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SOCAR Turkiye Enerji, the Turkish subsidiary of State Oil Company of the Azerbaijan Republic (SOCAR), has closed a deal for transferring the internet provider Millenicom to the ownership of mixed investment venture fund Dorduncu Karma Girisim Sermayesi Yatirim Fonu, which belongs to the Turkish company Albaraka Portfoy Yonetimi A.S., as per Interfax.

"SOCAR Turkiye, whose primary activity is focused on oil refining, petrochemicals, natural gas and energy trade in Turkey, is divesting a non-core asset - the telecommunications company Millenicom," SOCAR Turkiye said in a press release.

The agreement to sell Millenicom was concluded earlier with the venture fund Dorduncu Karma Girisim Sermayesi Yatirim Fonu. The size of the deal was not disclosed.

Millenicom, which joined the SOCAR Turkiye group of companies in 2019, is one of Turkey's leading alternative operators, offering fast and unlimited fiber-optic internet to approximately 400,000 subscribers, the press release said.

"Implementing this deal will help to raise SOCAR Turkey's operational effectiveness and achieve the goals of sustainable development by focusing on core areas of activity, including oil refining, petrochemicals, and natural gas," it said.

As reported, SOCAR acquired EWE Turkey Holding, which manages the operations of the German company EWE AG in Turkey, in 2019. In particular, the deal included the purchase of EWE Turkey Holding and its five subsidiary companies - Bursagaz, Kayserigaz, Enervis, EWE Enerji and Millenicom.

SOCAR Turkiye Enerji owns a 51% controlling stake in Petkim Petrokimya Holding. The company also built the STAR Oil Refinery in Turkey, a container terminal and a power plant, and it supplies gas to the domestic market and petroleum products to fueling stations at airports in several major Turkish cities.

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Phillips 66 beat quarterly profit estimates on Tuesday as strength in its chemicals and midstream segments helped the refiner more than offset a slump in refining margins from lackluster fuel demand, said Hydrocarbonprocessing.

The company, which owns nearly 72,000 miles of U.S. pipeline systems, has moved more fuel this year than before as it expands its natural gas liquids market share.

Volumes of the super-chilled fuel that moved through its pipelines rose to 2.79 MMbpd in the first nine months of 2024, compared with 2.70 MMbpd in 2023.

The company's third-quarter adjusted profit rose 15.6% from a year earlier, also helped by an over three-fold jump in adjusted profit in its chemicals segment to USD342 MM, and a 4.7% drop in expenses.

However, its refining segment was hit by a drop in realized margins, driven by lower crack spreads, which fell to USD8.31 per barrel in the quarter from USD19.06 a barrel. Shares of the company were down nearly 2.2% in morning trading.

U.S. refinery margins, measured by the 3-2-1 crack spread, dipped to USD14.28 in mid-September, the lowest since early 2021.

Globally, refiners have seen a drop in profitability on soft consumer and industrial demand, especially in China. British energy giant bp reported a fall in third-quarter profit on weaker refining margins and slowing oil demand.

Phillips 66's third-quarter adjusted profit came in at USD2.04 per share, well above analysts' average estimate of USD1.66, according to data compiled by LSEG.

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Sumitomo Chemical has made a proposal to Maruzen Petrochemical Co., Ltd. (Maruzen Petrochemical), its joint venture partner in Keiyo Ethylene Co. (Keiyo Ethylene), to reduce offtake quotas for Sumitomo Chemical products at Keiyo Ethylene, said Hydrocarbonprocessing.

Sumitomo Chemical and Maruzen Petrochemical have begun joint consideration of this proposal for substantial operational optimization at Keiyo Ethylene.

Sumitomo Chemical has been working on the structural reforms of its petrochemical business in Japan, which faces a challenging environment, with declining domestic demand and increasing imports. As part of the efforts, in 2015 the Company ceased operations of its ethylene production facility at Chiba Works, which was the only one it operated on its own. In addition, following this, Sumitomo Chemical has procured some basic feedstocks such as ethylene exclusively from Keiyo Ethylene, in which it has engaged as a joint partner.

However, considering the ongoing unfavorable business environment, which is expected to persist due to factors such as increased imports from China and sluggish demand both in and outside of Japan, Sumitomo Chemical has proposed to Maruzen Petrochemical a reduction in the volume of its product offtake from Keiyo Ethylene. Moving forward, Sumitomo Chemical and Maruzen Petrochemical will proceed with detailed studies based on a shared understanding that further reform is necessary to substantially optimize the operations of Keiyo Ethylene.

Sumitomo Chemical is currently implementing fundamental structural reforms to remain a company with global presence, and the revitalization of the petrochemical business is one of its highest priorities. By advancing business restructuring both in and outside of Japan, including collaborations with business partners, and steering towards value creation using technologies that reduce environmental impact, Sumitomo Chemical will strive to strengthen the revenue base of its Essential & Green Materials sector.

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