Defeats for UN Plastics Treaty and UK Marine Protected Areas, and a win for Chinese emissions

Ready to catch up on sustainability news? August was characterized by a few disappointments in the environmental policy sphere, such as the UK's failure to protect more of its waters against damaging seabed trawling, and the UN's failure to reach a binding, global agreement to limit plastic pollution. However, we still came across good news: China is strengthening its Emissions Trading Systems, and the EU Commission is one step closer to (hopefully) clarifying the situation around sustainability reporting standards.

■ The UK backtracks on banning seabed trawling in Marine Protected Areas

In an effort to protect marine species and seabed ecosystems, the UK has been considering expanding its ban on bottom trawling from 18,000 to 48,000 km2. Bottom trawling is problematic because the dredgers used cause long-lasting to the seabed, and it results in high levels of bycatch. If implemented, the ban would cover more of the areas that are already supposed to be protected as Marine Protected Areas (MPAs). Others having adopted such bans include Sweden and Greece.

However, the verdict is disappointing. The government decided that Industrial trawling practices will go on in the UK's MPAs, following the questionable reasoning that “trawls penetrate the sediment very little, if at all” and that it has been practiced there for decades.

This discussion is not only happening in the EU. We are still waiting for 4 more countries to ratify the High Seas Treaty which would put 30% of international waters into protected areas, a target aligned with the EU’s. The UK signed the treaty in September 2023, but has yet to ratify it.

■ UN Plastics Treaty: new failed attempt to reach a global deal on plastic pollution

Countries have been in talks since 2022 to reach a global, legally binding agreement to end growing plastic pollution. Only 10% of plastic is recycled and microplastics have been repeatedly discovered in both our environments, and our bodies.

After a first failed attempt to agree on the scope in South Korea last year, oil states such as Saudi Arabia and Kuwait keep pushing for a focus on recycling only, while more than 100 nations are calling for curbs on production of plastic. Without limitations to plastic production, the treaty may fail to effectively end plastic pollution.

Many are disappointed by this outcome, but there are already talks of future negotiations.

■ China’s Emissions Trading Scheme shifting towards absolute emissions caps

China’s national Emissions Trading System began operating in 2021, and is the world’s largest in terms of covered emissions. The scheme was initially focused on the power sector only, and was intensity-based - how much companies could emit was based on emissions per output, compared to a benchmark.

Because there was no hard limit on how much a company could emit for many sectors, emissions could continue to grow if outputs grew. However, China will now improve the scheme by introducing absolute emissions caps for a number of sectors from 2027, and more broadly from 2030. Moving forward, the ETS will also extend to sectors such as chemicals and aviation, but also steel, cement and aluminium - 60% of China’s GHG emissions.

However, this may have little effect if the absolute emission caps are too weak. From a global perspective, while it seems that China’s power emissions are reaching a peak and subsequent decline, this is unfortunately offset by higher pollution loads in the US from coal-fired electricity generation.

■ CSRD: the final proposal for revised sustainability reporting standards is approaching

The CSRD requires large and listed companies to regularly report on social and environmental risks, as well as their impact on people and the environment. These reports must follow the ESRS standards, which EFRAG was recently asked to simplify to ease companies’ reporting burden.

This summer, EFRAG proposed a 57% cut on mandatory data points and a 55% cut in standards’ length, among other changes. A public consultation (survey here) runs until September 29th to gather feedback from auditors, civil society, investors, and national authorities.

WWF warns that fewer data points and shorter guidance won’t necessarily mean better standards. On the contrary, reducing detail may hinder reporting improvements and create confusion. EFRAG will deliver its final recommendations to the European Commission by November 30, 2025.