The treaty is intended to encourage private sector action and is being discussed at the Intergovernmental Negotiating Committee on Plastic Pollution (INC-4) meeting in Ottawa next week.

The finance industry believes that a policy framework with binding rules is necessary to reduce the estimated 400 million metric tonnes of plastic waste produced annually, which harms biodiversity and has been found in various environments, from the Himalayas to food and human blood.

The text discusses the recommendations of a group to address plastic pollution through a global treaty.

The treaty aims to align all public and private finance with the goal of eliminating plastic pollution, similar to the Paris climate agreement and Kunming-Montreal global biodiversity framework.

Companies are encouraged to assess and disclose plastic-related risks and opportunities.

Governments are requested to establish clearer plastic-related policies and targets, particularly in waste creation and recycling.

The group also calls for more private investment to tackle plastic pollution.

Anne-Sophie Castelnau, global head of sustainability at ING, emphasizes that a clear transition pathway in the treaty will help attract significant financing for ending plastic pollution globally.

The World Bank issued a $100 million plastic waste reduction bond in January, with the help of NGO Plastic Collective and Citi.

CEO Steve Hardman of Plastic Collective expressed appreciation for the support but urged businesses to provide more financial solutions for plastic reduction projects in Ghana and Indonesia.

Investors will receive payments linked to plastic removal credits generated by these projects.