rethink sustainability
Thailand’s ban on plastics in national parks is a welcome initiative
The country still faces many challenges as it transitions to an entirely recyclable plastics system
In 2022, Thailand banned the use of styrofoam packaging and single-use plastics in national parks in order to protect its wildlife,1 a move welcomed by many environmentalists. The initiative is part of the government's plan to shift to 100% recyclable plastic across the country by 2027.2
Thailand is currently encountering significant challenges regarding its plastic usage. According to Greenpeace, plastic waste is a real threat to the country's animal life, particularly its elephant population – digesting plastic can block the animals' intestines and disrupt the digestive system. Plastic also impacts marine ecology, with millions of tonnes of waste ending up in the ocean annually.3
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Last year, data from the World Bank showed that, despite Thailand's high municipal solid waste collection and recycling rate of 88.8%, uncollected plastic waste and unsanitary disposal facilities result in an estimated 428 kilotons per year of mismanaged plastic waste.4 The World Bank also revealed that less than a quarter of the plastics available for recycling in Malaysia, the Philippines and Thailand are being recycled into valuable materials. More than 75% of the material value of the plastics is lost, the equivalent of USD 6 billion per year across the three nations.5
Transforming the Landscape
The banning of plastics in Thailand's national parks was a highly lauded move. There are 147 national parks in the country, each with its own unique geographical features, ecosystems, flora and fauna.6 By implementing the ban, Thailand aims to reduce plastic waste and promote sustainable practices that will benefit both its wildlife and the wider environment in the long term. The Thai government has also announced plans to close down its national parks for several months each year in a bid to reduce environmental disruption and allow wildlife to return to its natural habitat.7
The country is also investing heavily in biodegradable plastics, with its bioplastics industry forecast to see growth of 10% per year.8
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Embracing the Circular Economy
Since 1950, global annual plastic production has increased more than 200-fold. From 2 million tonnes 70 years ago, now more than 400 million tonnes are produced each year, the equivalent of the combined mass of the global population.9 Only a little over 1% of all the plastic ever made has entered a true circular loop, the rest has ended in landfill, been incinerated or leaked into the environment. With many plastic items used only briefly, this waste translates to an annual economic loss of USD 120 billion.10
However, there is tremendous opportunity for turning plastic waste into a resource, as well as driving economies of scale and economic returns. According to industry estimates, by 2040, a transformed plastics economy will bring close to USD 1.3 trillion in savings across the public and private sectors.11
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At Lombard Odier, we believe that transitioning to a circular model for plastic means changing how we produce, use, and recycle plastic in order to greatly reduce waste.
Last year, The Alliance to End Plastic Waste and Lombard Odier Investment Managers announced the launch of a new circular plastic strategy that takes a full value chain approach. It will focus on scalable solutions to remove plastic waste from the environment, increasing recycling, and driving the global transition towards a circular plastics economy.
While Thailand's decision to ban single use plastics in national parks is a step in the right direction, addressing the challenges around plastic management requires a global solution. If we are to solve the problem of plastic waste, nations around the world must follow Thailand's lead.
1 https://en.vietnamplus.vn/thailand-bans-singleuse-plastics-styrofoam-packaging-in-national-parks/224823.vnp#:~:text=The%20ban%20aligns%20with%20the,prohibited%20at%20all%20national%20parks.
2 https://aseannow.com/topic/1286997-thailand-sets-2027-target-for-100-reuse-of-plastic/
3 https://www.oecd.org/ocean/topics/ocean-pollution/marine-plastics-pollution-Thailand.pdf
4 https://www.worldbank.org/en/country/thailand/publication/plastic-waste-material-flow-analysis-for-thailand
5 https://www.worldbank.org/en/news/press-release/2021/03/21/better-managing-plastic-waste-could-combat-marine-pollution-and-unlock-billions-of-dollars-for-a-circular-economy-southe
6 https://www.asiahighlights.com/thailand/national-park-guide
7 https://www.outlookindia.com/outlooktraveller/travelnews/story/70585/thailand-may-close-its-national-parks-annually-to-support-wildlife
8 https://www.nationthailand.com/blogs/business/40002330
9 https://www.lombardodier.com/home/rethink-sustainability/eradicating-plastic-waste.html
10 https://www.lombardodier.com/home/rethink-sustainability/eradicating-plastic-waste.html
11 https://wedocs.unep.org/bitstream/handle/20.500.11822/42277/Plastic_pollution.pdf?sequence=4
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