Operationalizing the foundational agreements embedded in the Montreal Protocols, as well as the Paris and Kyoto Agreements, the world now faces the challenge of proving the pledges—developing and implementing effective mechanisms to achieve the goals of climate policy. [...] The cumulative impact of the cap is intended to be the main tool to ensure the achievement of a global reduction target. [...] Rather, it seeks to ensure production of all the plastics the world needs and only the plastics the world needs. [...] Time and urgency have progressed to the point where a comprehensive regulatory intervention into the production, sale and distribution of plastics has become a necessity.8 The regulation of the financial elements of plastics production can be developed to smooth out the profit and loss dynamics of the industry. [...] The list included the chemical industry and most of the sectors along the value chain of petrochemicals, due to their importance to the economy—particularly health care, food security, power generation, and transportation.
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- United States of America
Table of Contents
- Introduction 1
- Tom Sanzillo Director of Financial Analysis 1
- Suzanne Mattei Energy Policy Analyst 1
- Abhishek Sinha Energy Finance Analyst 1
- A production cap could smooth out current and structural market imbalances. 1
- Slow economic growth will reduce demand for primary plastic polymers. 1
- New technologies will reduce demand for virgin plastics. 1
- Volatility and price instability likely will persist under current market conditions. 1
- Geopolitics and trade will alter supply and demand trends. 1
- Background 2
- Current Risks Outlook and Implications for a Production Cap on Primary Plastic Polymers 3
- Slow Economic Growth Going Forward Will Reduce Demand for Primary Plastic Polymers. Past Growth Will Not Be Repeated. 4
- New Technologies Will Reduce Demand for Virgin Plastics 5
- Volatility and Price Instability Is Likely To Persist Under Current Market Conditions 6
- Geopolitics and Trade Will Alter Supply and Demand Trends 7
- Credit Warnings Are Beginning To Sound Regarding Fossil Fuels Petro- chemicals and Political Opposition 7
- Plastics Are an Essential Businessa Production Cap Is a Proper Management Tool To Guide the Industry During a Period of Transformation 8
- Conclusion 9
- Endnotes 10
- About IEEFA 11
- About the Authors 11
- Tom Sanzillo 11
- Suzanne Mattei 11
- Abhishek Sinha 11
