Aid for Trade Priorities on Plastic Pollution
Summary
This policy brief examines how Aid for Trade (AfT) and Official Development Assistance (ODA) can be leveraged to help developing and least developed countries transition to sustainable trade and circular economies to combat plastic pollution. It highlights a significant mismatch between the limited funding for plastic pollution mitigation and the massive financial flows supporting the petrochemical sector, while proposing specific short- and medium-term deliverables for WTO members through the Informal Dialogue on Plastic Pollution and Environmentally Sustainable Plastics Trade (IDP).
Key insights
- Aid for Trade (AfT) is an emerging tool to help developing and least developed countries transition to sustainable trade, build environmental resilience, and diversify their economies. It can specifically support the WTO's Informal Dialogue on Plastic Pollution and Environmentally Sustainable Plastics Trade (IDP) and the development of a new international instrument on plastic pollution.
- There is a stark disparity between the financial resources allocated to fighting plastic pollution and those supporting the plastics industry. While ODA commitments for plastic pollution rose from $27 million in 2014 to $149 million in 2019, state financial flows to the petrochemical sector were approximately $38 billion globally as of June 15, 2021.
- The IDP has identified several priority areas for technical assistance and capacity building for least developed members and vulnerable small island developing states (SIDS). These include moving toward circular plastics economies, improving the recovery and recycling of plastics, facilitating access to key technologies, expanding trade in sustainable substitutes, and designing trade policies to address pollution.
- Developing countries have expressed specific needs regarding plastic pollution through the IDP and the Basel Convention, including the creation of plastic waste databases (Thailand), the development of regulatory policies and economic incentives for recycled materials (Algeria), and technical support for legislation and alternative material assessment (Argentina).
- Current ODA for plastic pollution is heavily skewed toward the end of the plastic life cycle. A UNEP stocktaking survey (2018–2019) found that the largest share of funding went to the management of collected plastics, followed by collection/sorting and clean-up, while the smallest shares were allocated to raw materials and design.
- The author proposes short-term deliverables for the IDP, including integrating plastic pollution priorities into the AfT work programme, launching WTO Secretariat training on trade rules compatible with plastic pollution policies, and enhancing AfT support for customs authorities regarding Harmonized System classifications.
- Medium-term recommendations include enhancing support for the Basel Convention's Plastic Waste Partnership, increasing support for UNCTAD's work on plastic substitutes and technology transfer, and creating AfT-funded infrastructure for environmentally sound waste management and the manufacturing of plastic substitutes.
- Beyond AfT, the document argues for a broader package of support to ensure a just transition, including debt relief for LDCs and SIDS, climate-related finance to decarbonize industry, social assistance for workers in 'brown' sectors like plastics, and access to digital technologies for monitoring plastic flows.
Cite the original document
- APA
- Sugathan, M. (2022). Aid for Trade Priorities on Plastic Pollution. Forum on Trade, Environment, & the SDGs. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Aid-for-Trade-Priorities-on-Plastic-Pollution.pdf?dm=1678450935
- Chicago
- Sugathan, Mahesh. Aid for Trade Priorities on Plastic Pollution. Forum on Trade, Environment, & the SDGs, 2022. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Aid-for-Trade-Priorities-on-Plastic-Pollution.pdf?dm=1678450935.
- Wikipedia
- {{cite report |last1=Sugathan |first1=Mahesh |title=Aid for Trade Priorities on Plastic Pollution |publisher=Forum on Trade, Environment, & the SDGs |date=May 2022 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Aid-for-Trade-Priorities-on-Plastic-Pollution.pdf?dm=1678450935 |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{sugathan2022aid, author = {Sugathan, Mahesh}, title = {{Aid for Trade Priorities on Plastic Pollution}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2022}, month = may, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Aid-for-Trade-Priorities-on-Plastic-Pollution.pdf?dm=1678450935}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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