Study shows that reducing disposable plastic in Brazil can generate BRL 6 billion in market value and prevent the emission of 18 million tons of CO₂

novembro, 14 2024

Considering the period from 2025 to 2040, the transition to more sustainable materials could result in a reduction of 8.2 million tons of plastic waste, in addition to generating a potential increase of BRL 403 million in GDP
By Oceana, Systemiq and WWF-Brasil

Plastic pollution is a global crisis that requires urgent and coordinated action. In response to this challenge, a Global Treaty Against Plastic Pollution is under negotiation, with the last round of discussions scheduled to take place between November 25 and December 1 in South Korea. The study Opportunities in the Transition to a Brazil Without Disposable Plastics, carried out at the request of the organisations Oceana and WWF-Brazil, indicates that the gradual elimination of disposable plastic items can drastically reduce environmental pollution, while strengthening the country's economy. The research was developed by the consulting company Systemiq and highlights the socioeconomic and environmental effects of the transition from disposable plastics to alternative materials or reuse models. 

Plastic pollution is the second biggest environmental threat to the planet today, according to the United Nations (UN). Scientists have already identified microplastic contamination in several vital human organs. Brazil, the largest producer and polluter of plastic in Latin America, produces around 500 billion single-use plastic items annually, of which 87% is packaging and 13% is disposable utensils such as cutlery and bags. Despite these high levels of production, waste management systems remain inadequate. As a result, we dump around 1.3 million tons of plastic into the oceans each year – which represents around 8% of all plastic that reaches the seas globally.

Given this scenario, it is essential that Brazil moves forward in implementing concrete solutions to this serious crisi

Main Findings of the Study

Environmental Benefits

In the period from 2025 to 2040, considering only the generation of disposable plastic waste, a decrease of 8.2 million tons is predicted - assuming that all of this avoided volume would become waste due to low recyclability and the high probability of leakage into the environment.

Considering that there will be a transfer of demand and the replacement of disposable plastics with other materials such as paper, glass, aluminium and compostables, which also generate waste when discarded, a net reduction of 3.2 million tons in waste generation is estimated in the period from 2025 to 2040. This reduction, in addition to potentially reducing public spending on waste management, prevents the emission of 18 million tons of CO₂ eq., which corresponds to taking 3.9 million cars off the road for one year.

Socioeconomic Transition

The elimination of disposable plastics represents only 6.8% of the national production of processed plastics, and employs between 15,000 and 24,000 workers. Predictions indicate a net reduction of 13,000 direct jobs by 2040. However, in the scenario that also considers indirect jobs, the final impact on the economy would be around 1,000 jobs. This analysis indicates that the alternative materials industry and sectors linked to it would have the capacity to absorb a large part of the workforce.

Economic Opportunities

The increase in demand for alternative materials and substitute products could boost the economic value of this market by up to 53%. The potential market value for substitute products reaches BRL 17.3 billion (about 2,8 billion euros), which represents a net increase of BRL 6 billion (about 982 million euros). 

Based on the economic model, reallocating the demand for plastic products to an alternative scenario could add BRL 403.3 million (about 66 million euros) to the Gross Domestic Product (GDP).

"With alternative industries already consolidated and some on the rise, such as compostable products and reuse services, Brazil is well positioned to make the transition to an economy free of disposable plastics. The production volume of these items is very small compared to the serious environmental, social and economic impact caused. Therefore, the transition is viable and urgent. To achieve this, we need to approve public policies, such as Bill 2524/2022, which opens up new economic opportunities, with the potential to strengthen innovative business models, explore the bioeconomy and decarbonise the sector", points out Lara Iwanicki, senior advocacy manager at Oceana.

Under consideration by the Senate’s Economic Affairs Committee since October 2023, Bill 2524/2022 includes provisions to gradually eliminate single-use plastics, with an emphasis on transitioning to alternatives that are recyclable, reusable or compostable. This approach aims to reformulate production and consumption patterns in Brazil, adopting a Circular Economy for Plastics, and avoiding the disposal of this material in nature.

Society demands a transition  

A survey released by WWF-Brazil in April this year revealed that eight out of ten people around the world want a global ban on single-use plastics. In Brazil, 85% of respondents support rules that require a reduction in global plastic production.  

The data and analyses from the study Opportunities in the Transition to a Brazil Without Disposable Plastics offer a very positive scenario for the Brazilian government to position itself assertively at INC-5 - the fifth and final meeting for the conclusion of the Global Treaty Against Plastic Pollution.

“This study supports the urgency of public policies that promote alternatives to disposable plastic, while reinforcing the need for economic support for emerging sectors. At INC-5, Brazil can drive the debate with concrete actions and specific goals, leading nations towards a Circular Economy”, says Michel Santos, Public Policy Manager at WWF-Brazil.

Public Policies and Economic Incentives

In order to ensure the success of the transition to a Brazil free of disposable plastic and the market potential for sustainable products, the study stresses the need for government support and economic incentives for substitute materials. With strategic support, small and medium-sized companies will be able to compete on a balanced way and expand their market share and competitiveness, reinforcing the economic viability of sustainable solutions and promoting a future of low environmental impact.

“Our analysis demonstrates that the transition away from single-use plastics in Brazil can generate substantial environmental and economic gains. By implementing a robust framework that promotes recyclable, compostable or reusable materials, Brazil can reduce waste and reduce CO₂ emissions from these residues. The data shows that such a shift is not only achievable, but also economically viable, with the potential to create new market opportunities and support job growth in the sustainable materials industry,” said Matthias Becker, partner at Systemiq. “This transition offers Brazil the opportunity to lead sustainable innovation while supporting global commitments to reduce plastic pollution,” he concludes.

About Oceana 

Oceana is the largest nonprofit advocacy organisation dedicated exclusively to ocean conservation. We work with science to restore the oceans’ abundance and ensure the health of marine biodiversity through policy changes in countries that control more than a quarter of the world’s fisheries. Our campaigns deliver effective results, as demonstrated by more than 300 victories against overfishing, habitat destruction, oil and plastic pollution, and the loss of endangered species.  

About WWF-Brazil 

WWF-Brazil is a Brazilian NGO that has been working collectively with partners from civil society, universities, governments and companies throughout the country for 28 years to combat socio-environmental degradation and defend the lives of people and nature. We are connected in an interdependent network that seeks urgent solutions to the climate emergency.

About Systemiq 

Systemiq, founded in 2016, has a mission to drive the achievement of the Sustainable Development Goals and the Paris Agreement by transforming markets and business models across five key systems: nature and food, materials and circularity, energy, urban areas and sustainable finance. Systemiq combines strategic consulting with high-impact work, partnering with businesses, the public sector, financiers and civil society to drive systemic change. The company operates in Brazil, France, Germany, Indonesia, the Netherlands and the United Kingdom.
Brazil dumps around 1.3 million tons of plastic into the oceans each year
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