A circular plastic economy should account for all societal costs
2026
Kristian Syberg | Sedat Gündoğdu | Tara Olsen | Doris Knoblauch | Nikoline Oturai | Tony R. Walker | Ellen Palm | Thomas Budde Christensen | Neil Tangri
One of the fundamental challenges for the UN plastics treaty is to shift the current linear plastic economy into a more circular plastic economy. Transitioning to a circular plastic economy requires a profound transformation of socio-technical systems, and research suggests that disruptive policies must simultaneously destabilize the entrenched linear system and cultivate a new regime that supports circular business models. A major barrier to this transformation lies in the artificially low cost of primary plastics, maintained by substantial subsidies for fossil fuels and plastic production. These subsidies, alongside the failure to internalize negative externalities – such as extensive health impacts and environmental damage – mask the true cost of plastic use, thereby undermining the economic case for innovation in sustainable alternatives. The upcoming UN plastics treaty presents a unique opportunity to realign market incentives and drive the necessary transition toward a circular, regenerative plastic economy.
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