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Trade and the

Circular Economy:
A deep dive into plastics
action in Ghana
Contents
4 Executive summary

6 Introduction

6 Background

9 The relevance of a circular economy

9 Why plastics management matters for Ghana

9 Shifting to a circular economy

10 Ghana’s plastic trade and local value chain

10 Trends and patterns in Ghana’s plastic trade

15 The local plastic value chain

22 Ghana’s plastic pollution control efforts and vision for circularity

22 Evolving legislation and the NPAP roadmap

23 Private sector response and initiatives

24 Energizing plastic waste management in Ghana

24 Boosting principles and policies

24 Evaluating capacity to become a regional plastic recycling hub

26 Using trade agreements for circular plastics

29 Controlling plastic waste trade

31 Facilitating imports of relevant goods

33 Attracting investment and services

34 Developing export markets

36 Conclusion

38 Acknowledgements

39 Endnotes

© 2021 Global Plastic Action Partnership, a


multistakeholder platform for impact created globalplasticaction.org
by and hosted at the World Economic Forum.
All rights reserved. No part of this publication
may be reproduced or transmitted in any form @PlasticImpact
or by any means, including photocopying and
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retrieval system.
Executive summary

This white paper is jointly commissioned by the Global Transitioning to a Circular Economy to create a domestic market for recycled plastics by should see their tariffs reduced; and (iv) examine whether
Plastic Action Partnership (GPAP), an impartial initiative mapping offtake opportunities in industries such as additional subcategories are required to remove tariffs on
of the World Economic Forum, and the Forum’s Platform for Plastics in Ghana consumer-packaged goods, construction, textiles and the identified goods.
for Shaping the Future of Trade and Global Economic the newly emerging automotive sector, and then inject
Interdependence. It aims to better understand how trade Outlined below are the key findings and policy options for appropriate stimuli (policies, regulations and incentives) Attract investment and services
flows and trade policies may help or hinder a country to Ghana’s transition to a circular economy for plastics. These to induce demand for recycled plastics by the target
address plastic pollution and move to a circular economy. are discussed in the paper in the context of two broad industries. Food-grade recycled PET (rPET) could To promote investment in its plastic waste management
mechanisms, domestic policy instruments – which are vital to support large PET users like Coca-Cola and Nestlé in sector, Ghana can explore various options through the
Ghana, a fast-growing economy with a burgeoning understanding the broader international policy landscape – meeting their global commitments on plastic action. ongoing negotiations of its free trade agreements. Firstly,
plastic waste problem, is home to one of GPAP’s flagship and trade agreements, as well as links drawn between the two. it can strategically negotiate services schedules which set
national partnerships and is used here as a case study. The Evaluate capacity to become a regional out countries’ commitments to the liberalization of services
research and subsequent policy options form a preliminary Boost domestic policy instruments for plastic waste recycling hub and which cover foreign direct investment. Secondly, it
assessment, with the suggested trade policy areas meriting a circular economy can include investment chapters in its trade agreements
further investigation. Plastic waste recycling capacity could become a to set investor obligations such as not undermining
With about 70% of plastic input materials used in Ghana strategic and competitive advantage for countries in the environmental regulations and adhering to sound practices.
Plastic, in particular single-use plastic, holds negative for packaging, the country needs to take urgent measures coming decades. Ghana could benefit by developing a
environmental consequences, yet the material is a to accelerate alternatives, waste reduction, reuse and vibrant plastic recycling industry which could grow and Develop export markets
preferred input for a variety of uses. Business-as-usual recycling. At the same time, it must also address the key build sufficient capacity to become a major player in this
projections indicate that annual total plastic consumption economic and social contributions made by the plastic domain, leveraging plastic waste as feedstock for plastics The African Continental Free Trade Agreement’s Annex
could more than triple from about 380 million metric sector. Through policies, regulations and incentives, Ghana production. Stakeholders will need to assess the merits of on Technical Barriers to Trade sets out a provision to
tons today to 1.3 billion metric tons by 2050. Ghana, can induce demand for alternatives and recycled plastics, this approach against capacity to ensure environmental develop regional standards in cases where no relevant
an oil-producing, coastal country in West Africa with while reducing plastic waste and stimulating its economy. goals are met. It will also be important to prioritize the latest international standard exists. This provision could allow
ambitious economic growth and industrialization plans, decarbonization technologies to avoid wasting investment the development of African standards for different
can harness trade policy to convert its plastic waste Stem the surge of single-use plastics in “stranded assets” related to climate action or other grades of recycled plastic, for example. The EU-Ghana
challenge into an opportunity by transitioning to a through incentives outdated technologies. Economic Partnership Agreement could also be leveraged
circular economy that reduces, reuses and recycles to help prepare Ghana-based exporters to comply
its waste. This would mitigate the risks of plastic One way Ghana could reduce single-use plastic usage Control plastic waste trade with plastic packaging standards being developed
waste pollution to land and marine ecosystems while is through disincentivizing the use of PET bottles for in the EU, including through capacity building, and
also boosting investment, jobs and innovation. on-premises consumption in environments like hotels, To keep hazardous and hard-to-recycle plastic waste identifying the pathway to use of plastic alternatives.
restaurants, cinemas and cafes where returnable glass out of its market, it is important for Ghana to develop
bottles or aluminum could serve as effective substitutes. a strategic approach to restricting such waste, in Investigate relevant initiatives at

70%
Alternatively, it could mandate a trade-level Deposit accordance with international trade expectations, the WTO level
Refund Scheme (DRS) for beverage manufacturers to take including the newly adopted plastic waste amendments
back and account for used PET bottles and other packs to the Basel Convention. It will be important to equip Ghana could explore participating in ongoing plurilateral
sold to such retailers. This would minimize the volume of border officials with the capacity to implement initiatives at the World Trade Organization (WTO), including
beverage packaging that leaks into the waste stream, the Basel Convention Prior Informed Consent (PIC) informal dialogue on plastics pollution and trade, informal
provide feedstock for recycling facilities and contribute procedure and expedite trade for responsible materials dialogue on trade and environmental sustainability, and
Approximately 70% of to a domestic market for recycled plastics, which in turn, recyclers whether import or export. Greater border discussions on phasing out fossil fuel subsidies. Of particular
plastic input materials in could be enhanced by trade policy. Other polymer types, efficiency could reduce the risks of illegal trade too. importance for Ghana would be to explore linkages
Ghana are for packaging. including multi-layer sachets, also merit attention. between technical assistance associated with trade and
Facilitate imports of relevant goods that administered by environmental communities.
Create a domestic market for recovery
and recycling To strategically link its waste management agenda with To orchestrate a coordinated approach to pursuing
trade agreements, Ghana, within the context of the these prospective policy options, Ghana could consider
The predominance of cottage recycling operations in Economic Community of West African States (ECOWAS), is establishing an inter-ministerial committee. As Ghana further
Ghana suggests that low plastic waste recovery and encouraged to (i) identify the types of goods it requires to develops its plastic waste management strategy and trade
recycling rates – 12% and 10% respectively (and in the advance both the upstream and downstream elements of policy priorities, public-private dialogue and cooperation
case of PET, only a 2% recycling rate) – could persist its plastic waste management strategy; (ii) set its Common will also be critical to ensure the market responds to the
for the foreseeable future. Ghana could take measures External Tariff on these; (iii) determine which products policy signals accordingly.

4 Trade and the Circular Economy: A deep dive into plastics action in Ghana
380M
Introduction

metric tons of plastics are


This white paper is jointly commissioned by the Global This case study on Ghana builds on earlier joint research produced annually worldwide
Plastic Action Partnership (GPAP), an impartial initiative into Plastics, the Circular Economy and Global Trade,
of the World Economic Forum, and the Forum’s Platform which provided an overview of the challenges for
for Shaping the Future of Trade and Global Economic plastics circularity in a global economy. The analysis

1.3B
Interdependence. The World Economic Forum is the world’s recommended trade policy action across three
leading international organization for public-private categories: border measures, behind the border issues and
cooperation, established in 1971 as an independent, increased transparency, complemented by regulatory
impartial, not-for-profit foundation. cooperation. Specific recommendations included refining
the international classification system for traded goods to
The Global Plastic Action Partnership was launched distinguish between different types of plastics and plastic
in September 2018 during the Forum’s Sustainable waste, reducing tariffs on technologies and goods for This figure is set to grow
Development Impact Summit. Founded by a coalition of waste management processes, and commitments to keep to 1.3 billion metric tons
public and private partners, it emerged as an ambitious environmental services sectors open to foreign companies. annually by 2050 under a
platform to accelerate the global response to the growing business-as-usual scenario.
plastic pollution crisis. The Forum’s Platform for Shaping the With a new amendment to the Basel Convention covering

14%
Future of Trade and Global Economic Interdependence works the transboundary movement of plastic waste in force since
to support debate and collaborative action on international January 2021, this deep-dive analysis on Ghana offers a
trade and investment for recovery, growth and sustainable timely exploration of relevant issues. Ghana’s fast-growing
development. Together, collaboration has enabled greater economy was selected for this case study based on its
research, analysis and partnership on oft-siloed issues at commitment to creating a domestic recycling industry
the interface of trade, trade policy and plastic waste. and to protecting informal sector waste pickers.
global average recycling rate
has led to plastic pollution
impacting land, oceans, human

Background health and the climate crisis.

139KG
Plastics in the global economy Ghana, a coastal West African country, grapples with
a serious problem of plastic pollution that could be
Plastics emerged as a mainstream industrial material in the aggravated by its ambitious growth and industrialization
1950s and have since gained preference over alternative plans. Promoting a circular economy – designing out waste,
materials, like metal, copper, paper and glass, due to keeping materials in use and regenerating natural systems – Average consumption of plastics per
advantages such as light weight, versatility and durability. will be essential to avoid environmental degradation. Trade person in North America and Western
Today, plastics are a basic input and packaging material and investment policies have a role to play in controlling Europe was estimated at 139 and 136
across all industries and products – from agriculture to waste and facilitating investment, as well as in ensuring kilograms respectively in 2015.
laptops and from candies to spacecraft. access to goods, services and external markets critical to

16KG
the circular economy.
About 380 million metric tons of plastics are produced annually
worldwide. This figure is set to grow to 1.3 billion metric tons This paper proceeds in two parts. The first part presents
annually by 2050 under a business-as-usual scenario.1 Yet the plastics landscape in Ghana and offers policy
frequent mismanagement after use and a low global average options to improve plastic management outcomes and
recycling rate of 14%,2 have led to plastic pollution impacting generate economic opportunities through domestic policy
land, oceans, human health and the climate crisis. instruments. The second part establishes, for a sub-set of
average consumption per person in
these policy options, vital linkages with trade and provides
the Middle East and Africa was just
Plastics consumption correlates with industrialization and additional suggestions about how Ghana might leverage
16 kilograms, but underdeveloped
affluence. Average consumption of plastics per person in trade agreements effectively. It also highlights the many
waste management systems have
North America and Western Europe was estimated at 139 challenges that must be addressed in doing so. Through this
escalated a pollution crisis.
and 136 kilograms respectively in 2015. In contrast, average practical case study, the paper is designed to contribute
consumption per person in the Middle East and Africa was to ongoing global conversations about how trade affects
just 16 kilograms,3 but underdeveloped waste management environmental protection, while also accounting for Sources: Centre for International Environmental
systems have escalated a pollution crisis. economic development priorities. Law, World Economic Forum, Plastics Insight

6 Trade and the Circular Economy: A deep dive into plastics action in Ghana
The relevance of a circular economy
The circular economy can help
Ghana in its pursuit of green growth.
It could unlock opportunities for job
creation, investment and innovation
while also integrating the informal
sector into the mainstream economy. Why plastics management matters for Ghana

Ghana is one of Africa’s fastest- packaged in small, heat-sealed plastic Like the rest of
growing economies, averaging annual bags, provides the source of safe the world, Ghana
GDP growth of 6.8% over the past drinking water for 63% of Ghanaians.6 is faced with a
30 years.4 The country’s Long-term Ghana’s municipal and solid waste plastics dilemma:
National Development Plan (2018 to management system, meanwhile, is a vital resource
2057) projects Ghana’s population under-resourced and overstretched. that is also a
will grow from 29.6 million to 49.1 The country’s notorious scrapyard at major contributor
million and urbanization will increase Agbogbloshie, near Accra, has become to environmental
from 56% to 95% by mid-century.5 renowned for its detrimental human pollution.
These projections have implications and environmental impacts, resulting in
for resource consumption and, in part, from the burning of plastic from
turn, environmental stewardship. exported electronic waste.. Accra’s
frequent floods have been linked, in
Like the rest of the world, Ghana is part, to plastic-clogged drainage and
faced with a plastics dilemma: a vital waterways.7 As such, the Government is
resource that is also a major contributor focusing pragmatically on the challenges
to environmental pollution. Plastic is of plastic waste management and
used in industry but plays a social role is considering a shift to a more
too. People at the bottom of Ghana’s circular economy. A National Plastics
economic pyramid can afford food Management Policy (NPMP) was put
items and other basic consumer forward in 20208 and the National Plastic
necessities mostly through low-priced Action Partnership launched in 2019
miniature packs sold in plastic sachets. as a key platform for multistakeholder
Similarly, due to the inadequate reach collaboration in support of Ghana’s
of municipal water supply, sachet water, transition to a plastics circular economy.9

Shifting to a circular economy

In contrast to a linear economy, the investment and innovation while also


circular economy promotes a closed- integrating the informal sector into the
loop system that designs out waste and mainstream economy. Additionally,
pollution, keeps products and materials a circular economy could enhance
in use, and regenerates natural systems. Ghana’s prospects of meeting major
As the Ellen McArthur Foundation notes, global commitments like the Sustainable
transitioning to a circular economy goes Development Goals (SDGs) and the
beyond waste reduction and “represents Nationally Determined Contributions
a systemic shift that builds long-term (NDCs) of the Paris Agreement on
resilience, generates business and Climate Change (2015). Establishing
economic opportunities, and provides a circular economy focus may
environmental and societal benefits.”10 encourage additional development
assistance, particularly given, for
The circular economy can help Ghana example, the World Bank’s recently
in its pursuit of green growth. It could stated intention to link funding support
unlock opportunities for job creation, to countries’ climate change actions.11
Ghana’s plastic trade and local value chain

Trend and patterns in Ghana’s plastic trade

As Ghana is not a significant producer under-reported; (ii) the data presented plastics and plastic articles covering
of plastics, understanding how it below does not include plastics, plastic polymer resins, semi-finished materials,
sources and consumes this resource products and plastic waste that may plastic products and plastic waste,
is an essential part of developing have been brought into the country pairings and scraps (Chapter 39);
recommendations for plastic waste unofficially or illegally; and (iii) there is fishnets (Chapter 56); and synthetic
management. Doing so introduces significant inconsistency of data from textiles (Chapter 63). These were
three major data-related challenges: different sources on imports, exports and chosen because they capture most
(i) plastics are embedded as casings local production.13 These factors make it imported plastics covered by the
or wrappings in several imported difficult to obtain a complete picture of HS codes, and synthetic textiles are
products but, as such plastics are not Ghana’s plastic imports, exports, local included among plastic items levied
listed under any of the Harmonized manufacturing and, by extension, total under the environmental excise
System (HS) code headings – a six consumption and waste generation. tax (EET) introduced by Ghana’s
digit-code system that serves as a Custom and Excise Act (863).14
foundation for worldwide import and The calculations for the data used Charts 1 and 2 below display the
export classifications – on “plastics”;12 in this section are based on three import and export of plastics by
plastic imports are under-counted and classifications under the HS codes: Ghana between 2015 and 2019:

Chart 1: Trend in Ghana’s Plastic Trade Volume (Tons) Chart 2: Trend in Ghana’s Plastic Trade Value (US$’000)

600,000 800,000

500,000

600,000

400,000

300,000 400,000

200,000

200,000

100,000

0 0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Imports Exports Import Export

Source: UN Comtrade Source: UN Comtrade

10 Trade and the Circular Economy: A deep dive into plastics action in Ghana
1.99M
Chart 3: Ghana Plastic Import by Materials (Tons)

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Ghana’s imported plastic volume


2019
grew 25% between 2015 and 2019,
totalling 1.99 million tons

2018
$2.56B
Ghana’s annual imported
plastic was worth $2.56 billion
in the period 2015-2019.

2017
77%
of Ghana’s plastic imports came
from ten countries, particularly
China and the Middle East.

Several conclusions can be drawn from partners in Africa were negligible,


this data. Ghana’s imported plastic totaling about 6%. South Africa’s share
volume grew 25% and totaled 1.99 of 2.95% exceeded the combined
million tons worth $2.56 billion over the 2.76% from Ghana’s immediate
period with a sharp upward spike of over neighbours within its subregional
24% in 2019 versus the 2018 volume. trading bloc, the Economic Community
Polymer resins, the primary input material of West African States (ECOWAS).
2016
for plastic production, accounted for
over 70% of imported volume (as shown It is no surprise that Ghana is so
in Chart 3), indicating a degree of much more dependent on plastic
value-added local manufacturing in the imports from Asia than Africa: Asia,
plastics sector as corroborated by the particularly China, is the world’s
fact that finished products accounted pre-eminent plastic supply point, and
for over 69% of the $1.38 billion Africa has relatively little capacity for
total export value. Finished products producing polymers and plastics.
primarily include single-use carrier
2015 bags, food and beverage packaging In sharp contrast to imports, Ghana’s
and plastic furniture, and are frequently plastic exports (Chart 5) were almost
exported to neighboring countries exclusively limited to Africa, specifically
including Burkina Faso, Togo, Benin and within ECOWAS which captured almost
Mali. Imports of plastic waste, pairings 99% of value share in 2019. Three
and scrap were less significant at fewer bordering countries alone – Burkina Faso,
than 15,000 tons over the period. Togo and Sierra Leone – accounted
for 90% of total plastic exports. This
Ghana’s plastic imports in 2019 (Chart may be explained by simple proximity,
4) were spread across global regions, as well as the trade advantages of
but there was significant geographic ECOWAS. Challenges posed by poor
Synthetic Textiles Waste, Pairings and Scrap Semi-finished Materials Fish Nets Plastic Products Polymer Resins concentration as approximately 77% of logistics, the relative immaturity of
the value came from just ten countries. the Ghanaian manufacturing industry
The Asia region, including China and and other trade barriers that hinder a
Source: UN Comtrade the Middle East, accounted for 52% of wider flow of regional trade in Africa,
The figures here reflect finished products, which as mentioned above, are significantly under-reported for several reasons. the total. Plastic imports from regional however, cannot be discounted.

12 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Chart 4: Ghana Plastic Import by Origins (Value Share, 2019) The local plastics value chain

Circularity needs to be embedded (although the refinery is not functional Region as part of an ambition to
China 21%
throughout the plastic value chain at present, serving as a storage facility become a regional plastic production
Others 20%
– from manufacturing to resource for imported refined products).15 hub.16 This objective seems counter to
recovery. Product design decisions, Ghana is therefore wholly dependent other national objectives, though, as
Saudi Arabia 14% including for single-use, reuse on imports for plastic input supplies to the carbon footprint and environmental
or recyclability, are made and its industries, spending an average of impact of the petrochemical
USA 11% implemented upstream and midstream, $413 million annually importing these industry could be detrimental to
and must be accounted for alongside materials over a five-year period Ghana’s sustainable development
UK 7% plastic waste management. Evaluating between 2015 and 2019. and circular economy goals and
the Ghanaian plastics value chain risks creating stranded assets.
India 5% provides an understanding of the One way of closing this gap would Contradictions such as this underline
constraints and prospects for making be for Ghana to explore forward the need for improved mechanisms
South Korea 4% changes in the current landscape. integration into polymer resin for inter-ministerial coordination
production through technological and greater policy coherence.
Belgium 4% advances. The Government has
1  pstream Activities:
U
identified the establishment of a
Thailand 4% Resin and other raw petrochemical industry as one of 12 Ghana’s plans to
input supply Strategic Anchor Industries that could develop a petroleum
UAE 4%
support an industrialized, inclusive and hub to promote a
As illustrated in Figure 1, Ghana does resilient economy. According to the resilient economy
South Africa 3%
not produce polymer resins despite Ministry of Trade and Industry, Ghana could be detrimental
being a crude oil and gas exporter is already working on a masterplan to to the country’s
Rest of Africa 3%
and having a petroleum refinery develop a petroleum hub in its Western sustainability goals.

Source: UN Comtrade
Note that similar to Chart 3, the figures here reflect finished products, which are significantly under-reported.

Chart 5: Ghana Plastic Export by Destination (Value Share, 2019) Figure 1: Plastics Full Cycle Value Chain in Ghana

Plastic Manufacturing/ Plastic Waste Management


Plastic Input Supply
Consumption Downstream
Upstream
Midstream

Burkina Faso 39% Major Plastic


Drilling and Extraction Conversion
waste generation
Crude Oil Preforms, Films, Closures, etc. points to waste Plastic Waste
Togo 28% stream

Sierra Leone 23%

Imported
Petroleum Refining Manufacturing
Propane, Naphtha, etc. Packaging, Pipes, Buckets, etc. Recovered Unrecovered
Others 4%
Processed/ Litter/
Landfilled Pollution
Mali 3% Petrochemicals Commercial Consumer Channels Recycled
Land & Waterbodies
Polymer Resins Hotels, Restaurants, Cafes, Cinemas
Niger 2%

Exported
Nigeria 1% Consumer New Concrete
Others
Flakes and Plastics Blocks
Homes, Events, Open marketplace Pellets
Benin 1%

Current upstream activity in Ghana

Optimizing direct plastic waste collection from these points substantially reduces pollution

Source: UN Comtrade While the petroleum refinery has not been functional in recent years, Ghana has the capacity to refine crude oil.

14 Trade and the Circular Economy: A deep dive into plastics action in Ghana
consumer packaged goods (CPG) likely predominant. Chart 6, drawn from that has created a boom for drinking
companies and their distributors, a study focusing on the Greater Accra water packaged in plastic sachets.
and importers and exporters of area, provides a polymer analysis Disrupting the trend will require
plastics. About 120 companies are of plastic imports in 2018.23 Table 1 changes in product design, packaging
engaged in converting imported indicates how these polymers are used mix, waste management systems and
polymer resins or semi-finished plastics in Ghana. There are just a handful of individuals’ habits as well as expanded
into various end-use or packaging companies, such as Mini Plast, that are reach of municipal water supply. CPG
products, such as films, containers, using locally sourced recycled plastics companies can influence this segment
housewares and preforms.22 to make new products.24 of the value chain, particularly when
it comes to product, packaging and
The shortage of data about plastic The surge in single-use plastics is marketing decisions. Companies like
production makes it challenging to not unique to Ghana and is largely Coca-Cola, Nestlé and Unilever have
conduct a detailed analysis of the driven by two factors: an ever- adopted circular economy principles
sector’s local manufacturing capacity. increasing need for convenience in framing their respective global
It is clear from plastic imports that and inefficiencies such as the poor commitments and targets on plastic
single-use plastics manufacturing is access to municipal water supply action (see Box 1)25

Chart 6: Ghana Plastic Import by Polymers (Greater Accra Area, 2018)

LDPE 42%
LDPE 42%
HDPE 27%
HDPE 27%

PET
PET 21% 21%

60%
PP 7%
PP 7%
PS 3%
Instead of developing petrochemical are still being debated by experts.19 PS 3%
capability, economies like Ghana’s may Discussions on these innovations are
wish to consider the merits of investing nonetheless evolving quickly. A recent
in low-carbon or non-fossil fuel report by McKinsey estimates that, by
By 2050, 60% of global chemical technologies for alternative 2050, 60% of global plastics production
plastics production could be or recycled plastic production. could be based on plastic reuse and
based on plastic reuse and Examples to think about include: recycling, including through chemical Note that the data excludes some finished products (i.e., more complex polymers) which may lead to under-reported figures, as in Charts 3 and 4.
recycling, including through recycling technologies.20 In Africa,
chemical technologies. • Bioplastics made from biomass which along with the Middle East is
feedstock, including bamboo, projected to become the world’s largest Table 1: Major end-use of polymer types in Ghana
paper pulp and agricultural waste consumer of plastics by the latter part
plants. Bioplastics have the potential of the century, early investment in new
to be fully biodegradable when technologies may prove strategic.21 The
produced from 100% biomass, next decade is critical for making vital Polymer Used in Ghana predominantly for
though further study is needed assessments that will get Ghana on track
on material specificities.17 to meet its climate action and economic LDPE: Low Density Polyethylene Terephthalate Single-use water sachet, single-use shopping bags
development goals.
• Depolymerization and similar Single-use water sachet, single-use cosmetic containers as
HDPE: High Density Polyethylene Terephthalate
chemical recycling technologies well as gallons, crates, pallets and pipes
that break down plastics, including 2 Midstream Activities:
difficult-to-recycle plastic waste, Plastic manufacturing PET: Polyethylene Terephthalate Single-use beverage bottles, single-use food packs, blister
into their basic components for the and consumption
production of virgin resins.18 Single-use cosmetic containers, blister as well as films, raffia
PP: Polypropylene
Ghana’s plastics value chain, bags, buckets, chairs, plastic furniture
These technologies are costly and mostly comprising polymer converters,
in their infancy, and their commercial plastic products and packaging PS: Polystyrene Single-use food packs and cups
viability and net environmental footprints manufacturers, local and global

16 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Practical examples of how these
companies can advance their circular
Box 1: Global commitments on circular packaging
economy commitments for plastics in
actions by major companies by 2025-2030 Ghana are highlighted below. They are
also discussed further in subsequent
aspects of this paper.

Company Global Commitments on Plastics/Packaging Reduction, Reuse and Recycling • Use of recycled plastics: Recycled
plastics can be used for nearly all
packaging applications, including
Coca-Cola • Make 100% of our packaging recyclable globally by 2025 food packaging. In the case of PET in
Ghana, using recycled PET, including
• Use at least 50% recycled material in our packaging by 2030 food grade quality, for all consumer
goods packaging could directly
• Collect and recycle a bottle or can for each one we sell by 2030
reduce virgin plastics consumption
and boost collection and recycling.

PepsiCo • Design 100% of packaging to be recyclable, compostable or biodegradable by 2025


• Substitution of PET bottles:
• Increase recycled content in our plastics packaging to 25% by 2025 Returnable glass bottles (RGBs)
and aluminum cans could serve as
• Reduce 35% of virgin plastic content across our beverage portfolio by 2025 substitutes for PET bottles in hotels,
restaurants, cinemas and cafes
• Invest to increase recycling rates in key markets by 2025 (HORECCAs) which are on-premises
consumption channels. A local
bottled water brand, Bel Aqua, has
Nestlé • Make 100% of our packaging recyclable or reusable by 2025 successfully launched and sustained
glass bottled water in Ghana.26
• Reduce our use of virgin plastics by one third in the same timeframe
While most studies ascribe a higher
• Innovate with new materials & develop Alternative Delivery Systems carbon footprint to single-use glass
packaging when compared to PET,
in Africa (including Ghana), where
glass bottles have over 90% recovery
Unilever • By 2025 we will halve the amount of virgin plastic we use in our packaging
rate and are estimated to be
• By 2025 we will increase the recycled plastic material content in our packaging to 25% reused between 18-25 times before
recycling, there may be better
• Help collect and process more plastic packaging than we sell by 2025 lifecycle benefits.27

• By 2025 all of our plastic packaging will be designed to be fully reusable, recyclable
• Use of refillable PET bottles:
or compostable
Refillable PET (RefPET) has emerged
as the plastic equivalent of the RGB
bottle and is popular across Latin
Danone* • Using 100% reusable, recyclable or compostable packaging America and in Germany, especially
for larger-sized beverage packs
• Streamlining our use of materials and developing new delivery models
of one-litre or more.28 Like RGBs,
• Co-building effective, efficient and inclusive systems for collection and recycling RefPET bottles offer waste-reduction
benefits as they are recovered by
• Reintegrating recycled materials the beverage companies directly
and washed and reused several
times before being recycled at the
Dow • By 2030, reduce net annual carbon emissions by 5 million end of their life.
metric tons versus its 2020 baseline (15% reduction)

• By 2030, enable 1 million metric tons of plastic to be collected,


reused or recycled through direct actions and partnerships.

• By 2035, close the loop by enabling 100% of Dow products


sold into packaging applications to be reusable or recyclable

*Danone operates in Ghana under the Fan Milk brand.

18 Trade and the Circular Economy: A deep dive into plastics action in Ghana
10%
3 Downstream many countries, a deposit refund opportunities and creating effective 201942 aided by regulatory approval
Activities: Plastic scheme (DRS) would help change this, policies, regulations and incentives to for food-grade recycled PET since
motivating consumers to return used induce demand for recycled plastics. 2009. A plastic alliance, PETCO SA,
waste management PET bottles.34 Aside from consumer- has also helped to grow the recycling
Ghana’s recycling rate is level DRS, Ghana could also introduce As illustrated in Figure 4, there are industry by implementing an EPR
Government schemes to
estimated to be 10%. Municipal waste management an innovative trade-level DRS for food high-value and potentially large-scale with buyback subsidies in addition to
incentivize eco-friendly
and plastics and drink destinations, such as hotels, opportunities where effective policies offtake contracts.43 Additionally, textile,
construction could help to
restaurants, cinemas and cafes, in and incentives could stimulate demand furnishing and automotive industries
promote local manufacturing
The waste management system relies addition to cosmetics and consumer and attract investment in recovery and support the PET recycling industry by
of materials made from
heavily on a chain of informal sector goods locales. This approach would recycling infrastructure. For example: purchasing synthetic fibre. South Africa’s
recycled plastics.
operators working independently require manufacturers and their (i) CPG companies need food-grade enabling framework, which mandates
or as members of cooperatives, customers to recover and account for recycled plastics to meet their circular plastic-packaging companies to
retrieving recyclables from residential all sold packaging and containers (PET, plastic packaging commitments; (ii) ensure a market for recycled plastics, is
and commercial premises, roadsides, aluminum cans, juice cartons, cosmetic the textile, garment and apparel helping to boost collection and develop
beachfronts, dumpsites and landfills containers and so on). industry in Ghana requires synthetic a circular plastics economy. Coca-Cola
which are then sold directly to recyclers fibre to augment the declining supply has actively advocated for an rPET
or to waste aggregators. About Further down the value chain, about 25 of cotton;37 (iii) Ghana’s automotive standard in Ghana, and some potential
5,000 informal collectors are said to formal recyclers operate across Ghana policy goal to locally manufacture investors in PET-to-bottle recycling are
operate in the Greater Accra Region with an estimated, aggregated annual components and parts38 also requires waiting for this enabling condition.
alone.29 Licensed waste collection capacity of 96,000 tons.35 They recycle synthetic fibre – Volkswagen and
firms also exist. To boost capacity, LDPE and HDPE water sachets into nylon Toyota have already set up assembly Looking at another case, the
the Government has encouraged shopping bags, HDPE and PP into chairs, plants, illustrating a timely opportunity;39 rapid development of premium
private sector participation, leading to crates, and more, downcycle a mix of (iv) a Norwegian investor (PRF) is keen gated-communities in large cities
investment in modern material recovery plastics into bricks and other materials, to set up a plastic pyrolysis plant in demonstrates a sustained boom in
facilities (MRFs) like the Integrated and crush plastics including PET into Accra;40 and (v) the boom in middle- to the middle- to upper-income housing
Recycling & Compost Plant (IRECOP).30 flakes for local or export markets. Most upper-income housing construction41 segments for Ghana’s real estate
There are not enough of these facilities are small operators with high production could benefit from materials made construction industry. The Government
to meet current needs. Plastic waste costs and poor funding that prevent from recycled plastic waste. could leverage this growth to create
accounts for 14% of municipal solid them from utilizing their full capacity. a coveted ‘eco-friendly housing
waste and is projected to increase to For example, Nelplast is reputed for Addressing the existing hurdles will certification’ scheme, incentivizing
17% by 2030.31 Ghana’s overall plastic high-quality bricks made from plastic require some reflection on policy the local manufacture of materials
recycling rate is estimated to be 10%, waste36, but it has struggled to scale up. stimuli and public-private partnerships. such as building blocks, paving stones,
with PET recycling even lower at 2%.32 The absence of a PET-to-fibre or PET- PET bottles, serving as an illustrative floorings and drainage pipes from
An estimated 1.2 million tons of plastic to-bottle recycling plant and a recycling example cited previously, represent recycled plastics. Through public
waste has accumulated in Ghana’s solution for flexibles and composite a problematic variant in Ghana’s procurement, the Government could
dumpsites and landfills over the years.33 sachets remain substantial gaps. plastic waste stream. By comparison, also use these recycled materials in
South Africa achieved a 62% PET public housing, schools, hospitals and
Rethinking material recovery Plastic waste reduction initiatives in recycling rate totaling 95,879 tons in other civic construction projects.
Ghana, as in many other emerging
Material recovery is crucial to countries, are supported largely by
addressing the plastic waste pollution funding from international NGOs,
challenge in Ghana. There are four development agencies and corporate Figure 4: Potential domestic markets for plastic waste/recycled plastics in Ghana
key challenges to overcome: (i) the organizations. Most of this financing is
absence of sorting bins reduces targeted towards boosting collection
point-of-use collection, resulting in (the push factor) with very little
recyclables ending up in dumpsites investment in expanding domestic
unnecessarily; (ii) collectors are demand or recycling capacity (the Potential domestic markets for plastic waste in Ghana
underfunded, poorly equipped and pull factors). Collection cannot grow
demotivated by price and demand beyond the available demand and
volatility; (iii) the absence of an recycling capacities – both of which
extended producer responsibility are currently weak in Ghana. The result
(EPR) scheme limits private sector is that both demand and pricing are low Automotive Petrochemical Construction
CPG industry Textile industry
funding and support; and (iv) a lack and unstable, impeding waste recovery. industry industry industry
of scaled recycling translates to
low offtake, weak prices and poor Developing the domestic market for Recycled packaging, Synthetic fibre for Fibre for paddings and Feedstock for Synthetic fibre for
earnings for collectors. recycled plastics through policy stimuli including food- various textile straps and recycled pyrolysis (fuel oil insulation, blocks and
grade rPET applications plastics for light production) and paving stones,
An underlying problem, however, is Ghana could achieve a market- fittings, mats, body depolymerization floorings, roofing,
the mindset that still treats plastic driven self-sustaining plastic recycling panels, straps, etc. (virgin resins cables, etc.
production)
as disposable. As demonstrated in economy by mapping domestic market

20 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Ghana’s plastic pollution control
1  ational Plastics Management
N
Policy (NPMP):
Box 2: Some of the major policies and legislations
efforts and vision for circularity The policy provides a comprehensive
policy framework for plastics
for the control of plastic waste and other pollutions

management in Ghana and clearly


identifies all relevant stakeholder • Hazardous and Electronic Waste Control and Management
groups and their respective roles. It Act, 2016 (ACT 917) which imposed an eco-levy on imported
also outlines key measures to address electronic products to fund the management of e-waste.
the identified challenges, including an
EPR scheme and the establishment of • Environmental Policy, 2014
Evolving legislation and a Resource Recovery Secretariat to
oversee the policy implementation and
the NPAP roadmap administer the EET fund.
• Customs and Excise Act, 2013 (ACT 863) which imposed
a 10% Environmental Excise Tax on imported plastics.
2  ational Plastic Action
N
Prior to 2017, under the overall Partnership (NPAP) Ghana: • Hazardous and Electronic Waste Control and Management
supervision of the Ministry of Act, 2016 (ACT 917) which imposed an eco-levy on imported
Environment, Science, Technology In 2019, Ghana became the second electronic products to fund the management of e-waste.
and Innovation (MESTI) and its country in the world to adopt the
implementation arm, the Ghana NPAP model, an initiative of the • Climate Change Policy, 2012
Environmental Protection Agency Global Plastic Action Partnership – a
(EPA), Ghana initiated about 30 World Economic Forum platform to • Environmental Sanitation Policy, 2010
policies and laws concerned with translate commitments into actions on
managing plastic waste and other plastic waste and pollution.48 NPAP • National Environmental Sanitation Strategy and Action
forms of pollution.44 Box 2 lists some of Ghana convenes stakeholders and Plan (Materials in Transition, MINT), 2010
these policies and laws. In addition, initiatives to scale and accelerate
a Ministerial directive in July 2015 in-country partnerships. It has also • Management of Ozone Depleting Substances and Products
prohibited the sale of plastic bags supported policy formation such as the
Regulations, 2005 (LI 1812), which placed pre-polymers under
under 20 microns thick and advocated NPMP and has helped design an EPR
the “controlled substances” category liable to Pollution tax
for all flexible plastics to contain scheme by bringing together relevant
biodegradable components. This effort sectors to communicate and conduct
proved ineffective, along with several science-based analysis. NPAP Ghana • Environmental Impact Assessment Regulations 1999, (LI
attempts to ban single-use plastic bags partnered with enterprise software 1652), which listed plastic products among the “undertakings
and sachet water.45 Similarly, a 10% giant, SAP, to develop and pilot a requiring registration and environmental permit.
environmental excise tax (EET) levied mobile phone-based application to
on imported plastics does not appear measure and track the amount of • Environmental Protection Agency Act, 1994 (Act 490) Part I & II
to have discouraged importation. plastic waste pickers are collecting,
Nor does it seem to have improved increasing transparency across the
plastic waste collection or pollution value chain.49 It also developed a
prevention, given that, to date, the baseline analysis for gender that The national plastic action roadmap, establishment of two industry platforms
fund has not been administered.46 highlights inequality in the value chain expected to launch in July 2021, for collective action on both plastic
and informs policy. Currently, the complemented by an EPR policy, will waste and the necessary regulatory
Most of these initiatives have not NPAP is working to produce a national be the next significant milestones to framework. The Ghana Recycling
achieved their desired objectives for plastic action roadmap. encourage progress. Initiative by Private Enterprises (GRIPE)
several reasons, including a lack of formed in 2017,50 while the Ghana
planning, poor coordination between 3 National plastic action roadmap: Plastic Producers Responsibility
sectors and stakeholders, weak Private sector response Organization (GPPRO) was created in
enforcement and an absence of policy The roadmap will provide a clear 2019 to implement the anticipated EPR
incentives for the general public and pathway for the eradication of plastic and initiatives scheme for the plastics sector.
the private sector.47 Nevertheless, pollution of marine environments
some positive outcomes have resulted and other water bodies by 2040. Prior to 2016, private sector Since then, through GRIPE and
during this period, including greater It will offer key recommendations participation in plastic waste initiatives by some member-companies,
public awareness and the creation of for comprehensive systems change management in Ghana was mostly the private sector has endeavoured
beneficial public-private partnerships. through the implementation of five through solid waste service providers to support the transition to a circular
The Government has also since complementary interventions across and recyclers. Active involvement plastics economy and its related policy
pivoted to focus on multistakeholder the plastics value chain relating to: by CPG companies like Coca-Cola, development. However, the scope,
collaboration towards a circular reduction and substitution, product Unilever and Nestlé was a response scale and impact of GRIPE’s initiatives
plastics economy, establishing three redesign, enhanced collection, to the global outcry against plastic have been criticized for coming up
anchor initiatives: greater recycling and safe disposal. waste pollution, leading to the eventual short of expectations.51

22 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Energizing plastic waste Table 2: Overview of policy options to advance plastic management

management in Ghana Policy Options Reduce/Reuse


Target Impact

Recover Recycle

Stimulate domestic demand for recycled plastics to accelerate and scale


plastic recycling by:

a) creating plastic recycling standards for end-use applications, including food-grade rPET;

b) s etting an implementation timeframe for mandatory minimum recycled plastics content


Boosting principles and policies for product packaging;

c) incentivizing recycled plastics packaging;

The Government’s vision for The Government could speed up 4 Adapt relevant best practices: d) developing a recycled plastics market linkage masterplan to promote adoption of
recycled plastics input materials by target industries.
industrialization is made clear in its the objective stated in its NPMP Ghana could learn a great deal
Long-term National Development Plan to establish a Resource Recovery from South Africa’s experience of
(2018-2057). Plastics are identified as a Secretariat (RRS). The RRS would introducing an EPR scheme, PET Reduce plastic consumption through reuse and substitution by:
key material in the “10-Point Agenda for be empowered to collate and recycling and refillable PET bottles,
Industrial Transformation” that designates manage data about plastics and as well as its ongoing exploration a) incentivizing use of RGBs and aluminum cans for beverages, including bottled water,
in HORECCAs;
twelve “Strategic Anchor Industries”, other recyclables. of alternative feedstock for
including four that have direct and plastics resin production. b) p
 romoting and incentivizing use of refillable PET bottles, which should be exempted from
substantial linkages with the plastics value 2 Institutionalize coordination: virgin PET tax because of their reusability;

chain.52 The Government is optimistic that Effective plastic action in Ghana 5 Optimize public-private c) promoting through advocacy the use of bulk water dispensers to replace PET bottled water
a vibrant recycling industry can recover requires active collaboration and collaboration: Ghana already where possible/appropriate;
nearly one million tons of plastic waste policy coordination between has a strong foundation in
d) expanding municipal water supply to provide access to piped water where possible/
to generate two billion GH₵ annually in MESTI and other ministries public-private collaboration and appropriate, thereby reducing the extensive dependency on sachet water.
basic-need products. It also estimates responsible for sectors such as partnerships. Its leaders could
the potential to create five million jobs trade, industry, petroleum and consider replicating South Africa’s
across formal and informal sectors of housing. The provision in the NPMP Plastic Pact54, which aims to involve Boost plastic waste collection by:
the economy.53 However, as this paper for an inter-ministerial forum to the general public in meeting CPG a) deploying and enforcing the use of segregated waste bins to encourage waste
has set out, changes need to be made ensure coordinated and coherent companies’ global commitments sorting at source and improve point-of-use recovery;
to achieve this vision. The following policy-making on issues such as on plastics reduction, to strengthen
b) s caling up digital collection apps to automate the recycling value chain
principles could guide Ghana’s plastics plastics should be implemented. the private sector’s engagement (Coliba, UNDP, SAP versions already exist);
stakeholders towards their circular in the implementation of the
economy and industrialization goals in a 3 Build regulatory and enforcement action roadmap. c) considering trade-level DRS to encourage direct takeback of beverage packaging
waste by manufacturers from HORECCAs;
complementary manner: capacity: Ghana needs to
invest in effective regulatory and Table 2 summarizes responsible plastic d) implementing a consumer-level DRS.
1 Resolve the data challenge: enforcement capabilities for the management policies that Ghana’s
Ghana needs an effective institutions that are tasked with stakeholders may want to consider. It Facilitate funding opportunities to develop the recycling value chain by:
plastics data repository to inform implementing the NPAP’s action will be important to strike a balance
nationwide plastic studies, roadmap. This also entails assessing between incentivizing circular plastics a) expediting implementation of the NPMP, environmental excise tax disbursement and EPR
scheme to boost private sector support for collectors and recyclers;
feedstock assessments and performance and demonstrating and the need for enforcement and
planning and investment decisions. political support for those institutions. environmental protection. b) p
 roviding investment incentives for large-scale recycling infrastructure similar to the
automotive industry incentive scheme;

c) harnessing circular economy funding opportunities available globally55 –


e.g., African Development Bank’s Africa Circular Economy Fund (ACEF).
Evaluating capacity to become a regional recycling hub
Incentivize innovation and adoption of plastic alternatives and substitutes by:
Ghana is emerging as an important Ghana’s fast-growing plastics product plastic recycling economy, it could
political and business hub in West manufacturing industry currently eventually evolve into a regional hub. a) enforcing a levy on plastic shopping bags to encourage use of paper and textile substitutes;
Africa. It hosts the headquarters of supplies some of its ECOWAS There would be upsides and downsides
b) implementing effective green procurement policies that prioritize viable
the African Continental Free Trade neighbours. With a low-cost business to consider with this approach. non-plastic alternatives.
Agreement (AfCFTA) Secretariat and environment and supportive trade
Twitter’s Africa regional offices, among policies, the local plastics sector could The following sections of this paper will
Eliminate non-recyclable and hazardous plastics by:
several others.56 Stakeholders could consolidate these beginnings and discuss the trade implications of some
consider the merits, and challenges, expand beyond ECOWAS, especially if of these policy options and suggest a) mandating a timeframe to phase out the use of non-recyclable and hazardous plastics;
of operating as a regional leader it is able to adopt less carbon-intensive how Ghana can harness trade policy
b) s trengthening controls to prevent the importation of non-recyclable and hazardous plastic
in circular plastics and particularly manufacturing practices. Furthermore, and tools to take advantage of a waste until, e.g. a ban comes into effect.
around recycling. For example, if Ghana develops a responsible number of opportunities.

24 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Using trade agreements for circular plastics

To advance some of the policy options


set out in the previous section, Ghana
Box 3: Overview of Ghana’s major trade agreements
will need to adopt a proactive trade
policy. This section demonstrates
where potential linkages already
exist, analyses the challenges and • The World Trade Organization – an intergovernmental organization
opportunities associated with plastics that deals with global trade rules between nations.
trade, and explores the role of
Ghana’s trade agreements. It also • The Economic Community of West African States (ECOWAS) – a
provides an overview of relevant customs union comprising of fifteen countries located in West Africa.
multilateral initiatives where stronger
connections between the plastic • The African Continental Free Trade Area (AfCFTA) – a continent-
pollution agenda and sustainable wide free-trade agreement that came into effect on 1 January
economic development are needed. 2021. Negotiations are ongoing, including schedules of concessions
The analysis in this section focuses for goods and service and rules of origin, and Protocols on
on trade agreements that Ghana Investment, Intellectual Property, Competition and E-commerce.
is a party to, as set out in Box 3
below, with an emphasis on AfCFTA, • The African Growth and Opportunity Act (AGOA) – a
ECOWAS, the EU-Ghana Economic
unilateral trade-preference program that provides Ghana
Partnership Agreement (EPA) and the
with duty-free access to the United States for many products.
pending EU-ECOWAS EPA, and the
This programme is expected to expire in 2025.
World Trade Organization (WTO).
• The EU-Ghana Economic Partnership Agreement (EU-Ghana
Trade deals could help promote a
EPA) – a stepping stone EPA between Ghana and the EU that has
circular economy by incorporating
been in place since 2016. The EPA is a trade and development
specific environmental references.57
agreement, which secures Ghana’s free access to Europe’s market
Even without such references, trade
agreements could be used to improve for Ghanaian goods while also establishing institutional partnerships.
plastic waste management, though to
date that has largely been untested. • The EU-ECOWAS EPA – an EPA between ECOWAS countries and the

2019
Areas to consider include: controlling EU that is pending ratification by Nigeria. At present, Nigeria has no
plastic waste, facilitating the import of intention to sign, which makes the agreement currently inoperable.
relevant goods and services, attracting While the text has been finalized, there are various areas that are
critical investment, and developing expected to be negotiated after the agreement enters into force,
export markets – especially regionally including services, investment and sustainable development.
– for plastic products containing
recycled material or non-plastic • The UK-Ghana Interim Trade Partnership Agreement (TPA) –signed
alternatives. Table 3 below provides an in February 2021. A bilateral trade deal that provides duty-free and In 2019, Ghana became the second
overview of where trade agreements quota-free access for goods exported from Ghana to the UK market country in the world to adopt
could be most relevant for some of the and gradual tariff liberalization of UK goods exported to Ghana. the NPAP model to translate
policy options outlined previously. commitments into actions on
plastic waste and pollution.

26 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Table 3: Linking policy options for effective plastic waste management in Ghana to trade 1. Controlling plastic waste trade

Following new that went into effect in January 2021.59 controlled) as well as the scope of
Leveraging trade agreements
international rules Specifically, these amendments plastic waste presumed to be non-
Facilitate added hard-to-recycle plastic waste hazardous.60 The latter category covers
Policy options Control plastic imports of Attract Develop export To prevent the country’s plastic to Annex II of the Convention, which plastic waste that is recyclable, sorted,
(waste) imports relevant goods investment markets pollution crisis getting worse, it is lists categories of waste requiring (largely) uncontaminated and destined
and services
imperative that Ghana strengthens special consideration through the for recycling (that is, easy-to-recycle
Advancing plastic management action controls to restrict the importation prior informed consent procedure plastics) and is not subject to the PIC
of non-recyclable and hazardous (PIC) – a control system with strict procedure unless a domestic decision is
plastic waste, in line with international requirements for transboundary taken otherwise (See Box 4).61
1(a): S
 timulate domestic demand for recycled plastic: developments. While it is unclear movements of waste. It involves
create plastic recycling standards for various end-use
whether Ghana currently applies any carrying out four key steps, including To keep hazardous and hard-to-
applications, including food-grade rPET
restrictions to the import of non- (i) notification by the state of export recycle plastic waste out of its market,
recyclable or hazardous plastic waste, or by the exporter to the appropriate Ghana needs to follow and implement
it is a party to the Basel Convention – authorities of export, import and the rules of the Basel Convention on
4(b): Facilitate funding opportunities for recycling value chain a treaty concerning the transboundary transit; (ii) written consent by transport/ trade in plastic waste. Ghana can
development through: provide investment incentives for
movement and disposal of hazardous importing states; (iii) the use of also adopt further restrictions on the
large-scale recycling infrastructure investors
and other wastes – and has signed transboundary movement documents import and export of hazardous or
the Ban Amendment that prevents the from point of export to disposal; and hard-to-recycle plastic waste beyond
export of hazardous wastes from OECD (iv) the confirmation of disposal. The these international baselines. To do so,
5: Incentivize innovation and adaptation of plastic economies to non-OECD economies.58 plastic waste amendments further it is critical that the country develops
alternatives and substitutes added clarifications to the scope adequate customs capacity, as
Ghana has signed on to the Basel of plastic waste covered by Annex discussed below.
Convention plastic waste amendments VIII (presumed hazardous, and thus,

6(b): Eliminate non-recyclable and hazardous plastic:


strengthen controls to prevent importation of non-
recyclable and hazardous plastic waste
Box 4: Overview of Basel’s rules for three types of plastic waste categories
Evaluating capacity to become a regional hub

The Basel Convention has rules for three different • Easy-to-recycle plastic waste: (Annex IX, of the Basel
Encourage plastics production and waste management categories of plastic waste: hazardous plastics waste, Convention) covers non-hazardous plastic waste
facilities in special economic zones easy-to-recycle plastic, and hard-to-recycle plastic. that is recyclable, sorted, (largely) uncontaminated
and destined for recycling. Trade in easy-to-recycle
• Hazardous plastic waste: (Annex VIII of the Basel plastic waste is allowed and not subject to the PIC
Convention) covers plastic waste that is controlled procedure, unless Ghana decides otherwise.
Develop a competitive plastic recycling economy
that could potentially evolve into a regional hub
(Annex I) and exhibits hazardous characteristics
for plastic recycling and output supply (Annex III). Trade in hazardous plastic waste is • Hard-to-recycle plastic waste: (Annex II of the Basel
either prohibited or subject to the PIC procedure. Convention) covers all other plastic waste that is non-
Imports of such waste into Ghana are prohibited hazardous and not easy-to-recycle. Trade in hard-to-
from OECD countries (Ban Amendment) and from recycle plastic waste is subject to the PIC procedure.
Trade agreements could, in theory, economic zones (SEZs), Ghana may non-parties to the Basel Convention (e.g., the
also restrict Ghana’s ability to opt to subsidize the construction of United States). Ghana could also ban the import
implement policies related to plastic plastic recycling plants. Subsidies of hazardous plastic waste from non-OECD
waste management. The extent of are regulated by trade agreements, countries. Where not banned, the listed waste can
that influence would depend on so such measures would need to be be traded subject to the PIC procedure. Finally,
the plastic waste measures Ghana designed with those commitments Ghana could designate as “hazardous” certain
might adopt and the exact design in mind. The following sub-sections plastic waste not considered hazardous under
of these measures. For instance, to look in more detail at how trade Basel and subsequently ban its import. It may also
encourage plastics production and and plastic waste management choose to impose bans on non-OECD countries.
waste management facilities in special might complement each other.

28 Trade and the Circular Economy: A deep dive into plastics action in Ghana
2. Facilitating imports of relevant goods66
Better border capacity through licensing, green lists and trade facilitation
The Basel plastic waste amendments • An import licensing scheme could • Basel-listed plastic waste requires Trade agreements can facilitate access on measurable physical differences, part at an early stage would help
present various implementation be set up for companies that import written consent not only from to the goods Ghana needs to advance such as a threshold level of contaminants Ghana ensure that the list of what
challenges. While the recyclability of easy-to-recycle plastic waste. the importing country but also its plastic waste management agenda for waste to be considered almost- constitutes an environmental good
plastic waste is a determining factor in It could come with benefits like the transit countries, potentially while also restricting the import of free from contamination. Some OECD would include the goods important
triggering the PIC procedure, the Basel swifter import approvals, as well as delaying the PIC process. Ghana unwanted goods in line with the policy countries are already doing so.67 to its plastic waste management
Convention does not provide guidance a monitoring system to ensure the could consider suggesting that options presented. As noted above, and circular economy goals.
on how to differentiate between waste is making it to appropriate ECOWAS members use the Basel the current six-digit HS classification Ghana could also leverage trade
different types of plastic waste. This facilities, as is already required by Convention’s tacit consent option does not differentiate products agreements to remove tariffs on the Another classification issue concerns
problem is further complicated the PIC procedure. for the transit of plastic waste within based on their potential for hazard or import of environmental goods that so-called “hidden” plastic. HS Chapter
because customs procedures are member states. At the very least, recyclability. This lack of distinction not would accelerate its progress in plastic 39 covers “plastics and articles
based on product descriptions set out • Ghana and other ECOWAS countries ECOWAS members could agree that only makes it difficult to gather accurate waste management. For instance, thereof”, but plastics embedded
in the World Customs Organization could “green list” companies through consent is given if no objection is data on the types of plastic waste Ghana may need recycling machinery, in products or products wrapped
(WCO) Harmonized System (HS). The a pre-export verification process. voiced within a limited timeframe. being imported, but it also reduces technology and chemicals used for the in plastic packaging materials are
HS lists product codes for worldwide For example, a company that imports the use of targeted trade incentives. recycling process, all of which are likely not covered. That includes synthetic
import and export, typically focusing plastic waste could be green listed if Implementing these ideas will require Consequently, Ghana has limited ability to need importing. As part of ECOWAS, fibres, which comprise a large
on physical characteristics that can be it has a good record of compliance technical assistance and capacity to either lower tariffs on recycled Ghana would need to: (i) identify the proportion of the world’s clothing,
easily verified by customs officials and with customs and other laws and building. The EU-Ghana EPA provides plastics and plastics alternatives or types of goods it requires to advance plastic packaging and plastic fishing
not on a product’s end-use, such as regulations. Green list benefits could for the latter through the modernization increase tariffs and import restrictions its plastic waste management strategy; nets, as well as plastic contained in
whether it is destined for recycling. include longer-term approval validity of and enhanced cooperation on plastic products. Aware of dilemmas (ii) identify its Common External Tariff products, such as toys, vehicles and
for PIC procedure requirements.62 between customs administrations.64 such as this, the Basel Secretariat is (CET) on these; (iii) establish which household appliances. The lack of
An ability to differentiate between These provisions together with the preparing a recommendation to the product tariffs should be reduced; nuance makes it difficult for countries
types of plastic waste is critical. At • The PIC procedure could be WTO’s Aid for Trade – an initiative WCO to revise the HS codes. and (iv) examine whether additional to control the import of plastic or
present, authorities and customs officials streamlined through digitalization aiming to help developing countries subcategories would be needed to to apply environmental taxes to all
need to act with caution, likely applying and automation. Both ECOWAS and build trade capacity and infrastructure In the meantime, Ghana could seek to remove tariffs on the identified goods. plastics. For instance, Ghana applies its
the PIC procedure to all incoming and the AfCFTA contain provisions that – can be leveraged to secure technical add new a subheading to amend its environmental tax to plastic and plastic
outgoing plastic waste. That is important could be harnessed to advance such assistance for strengthening customs eight- or 10-digit HS schedules. Given A strategic approach to lowering products listed under HS codes 39 and
to do to avoid waste dumping but could measures.63 Some experts believe procedures and environmental that Ghana is part of the ECOWAS tariffs on such goods could be included 63 but not to plastic that is embedded
reduce material re-use options. Border that electronic processes help oversight. Moreover, the EU-Ghana customs union and applies a Common in the ongoing AfCFTA negotiations in products classified under other
officials’ jobs could also be made easier reduce opportunities for illegal trade EPA includes an agreement for parties External Tariff (CET), such changes would too. And Ghana might want to consider HS codes.68 Detailed examinations
through different measures: in hazardous waste. to assist each other in ensuring correct require agreement by the ECOWAS participating in forthcoming global are underway at a global level to
application of customs legislation.65 member states. Specifically, any new initiatives seeking to lower tariffs draw up more useful classifications
subcategories would need to be based on environmental goods. Taking for plastic waste imports.69

30 Trade and the Circular Economy: A deep dive into plastics action in Ghana
3. Attracting investment and services

Significant investment is required foreign companies can access the are ongoing –ECOWAS’ Services
to develop Ghana’s plastic waste domestic market. Countries can Policy Review,74 and the EU-ECOWAS
management agenda. According to make commitments based on each EPA, which aims to includes services
forecasting by NPAP Ghana’s plastic services sector as well as on the way schedules post-ratification. In terms of
action roadmap, a capital expenditure in which services are delivered.71 attracting foreign investment in services,
of $3 billion is needed over the next The latter includes foreign investment the EU-ECOWAS EPA is most useful.
twenty years to establish the necessary into a country. In this area, Ghana
management infrastructure, based on could demonstrate greater openness Ghana can also aim to include
a scenario assuming an 85% collection to investment in services critical to investment chapters that liberalize,
and a recycling rate of 32% by 2040. developing a responsible plastic waste protect and regulate investments
Investments in innovation and the management environment. Under the within its trade agreements.75
adoption of alternative materials and WTO, Ghana has made commitments Recently, investment chapters in
business models will also be needed. in construction and engineering but trade agreements have started to
not in other services sectors important contain provisions that facilitate
Upstream, investment in research to plastic waste management investment and set expectations for
and development is required to infrastructure. Ghana could also consider investors’ obligations. Commitments
redesign products – reducing making market access commitments can emphasize that investors may
plastic content, increasing reuse to relevant services sectors in its trade not undermine the environmental
and establishing collection and agreement negotiations, including with regulations of the host country,
refill infrastructure – as well as to the AfCFTA, and – if the agreement gets such as its recycling measures, and
develop products from alternative ratified – the EU-ECOWAS EPA or any promote the transfer of environmental
materials and produce rPET and other potential post-AGOA agreement with technology, including plastic waste
standards for recycled materials. the United States. management. For instance, the draft
ECOWAS Investment Code requires

$3B
Downstream, developing a plastic However, mirroring the issues with HS, foreign companies to adhere to sound
waste collection and recycling hub the global services trade classification management practices, including
and setting up recycling capabilities system, W/120, typically used as a recycling, waste discharge reduction
in SEZs would require significant basis for countries’ market access and knowledge transfer. These
investment in infrastructure. To get commitments in trade agreements, does provisions could help Ghana attract
there, investment in services would be not contain sub-categories for waste investment in useful technologies.
particularly important. For example, a recycling or product-design services.
A capital expenditure of $3 plastic waste recycling hub would also As countries are free to deviate from Investment from outside of Africa will be
billion is needed over the need access to recycling, installation, W/120, Ghana, under the ECOWAS particularly important as it could bring
next twenty years to establish assembly, testing, and maintenance umbrella, could explore adding new high-tech operations into the country.
the necessary management services to be created and funded. services subsectors to its schedules to The Ghana-EU EPA does not currently
infrastructure in Ghana. Related services, including logistics, help meet its plastic waste objectives. contain investment provisions, but
construction and engineering, There is a precedent for this: in recent investment and services commitments
transportation and telecommunications regional trade agreements,72 the EU are planned for EU-ECOWAS EPA.
would all be vital too.70 has added the subsector “recycling Should the EU-ECOWAS EPA come into
services” as a committed service force, it will give Ghana an opportunity
Ghana can use its trade agreements subsector.73 Market access commitments to attract EU investment that enhances
to facilitate investment by reviewing in certain services sectors would be its plastic waste management.
the trade schedules for its services, particularly relevant to the AfCFTA – for Connecting with the private sector will
which set out the degree to which which services schedules negotiations also be crucial in pursuing that agenda.
4. Developing export markets private sectors and for developing
national capacities for the assessment
of EU-compliant products.81 The EU-
European standards Differences in design and the the recovery and recycling of plastic Ghana EPA could also be utilized to
for recycling and implementation of standards and waste; and American Society for explore the equivalence and mutual
waste reduction regulations across jurisdictions can Testing Materials (ASTM) D5814 -18, recognition of standards between
are positive lead to inefficiencies and increase which sets out standard practice Ghana and the EU.
developments for trade costs, particularly for small- for determination of contamination
a global circular and medium-sized enterprises. These in recycled PET flakes and chips Relevant initiatives at the
economy, but add costs include gathering information on using a plaque test. Other initiatives World Trade Organization
new complexity for standards and regulatory requirements to introduce standards or improve
Ghanian exporters in different markets, adjusting the existing ones are ongoing, including To develop trade that benefits its
to the EU. specification of goods to comply with the Basel Convention’s work to plastic waste management agenda,
different requirements and undertaking upgrade the technical guidelines for Ghana could also take part in
conformity assessments to prove the identification and environmentally plurilateral initiatives at the WTO. In
compliance.76 In some cases, countries sound management of plastic waste November 2020, based on discussions
have implemented standards limiting and its disposal79 and the currently convened by China and Fiji, several
plastic use. The European Strategy for under-development ISO/WD 59010 WTO members launched an “open-
Plastics in a Circular Economy and the series containing guidelines on business ended informal dialogue” on plastics
European Union’s Circular Economy models and value chains for the pollution and sustainable plastics
Action Plan (CEAP), for example, set out circular economy. trade. The initiative explores, “How
mandatory requirements for recycled improved trade cooperation, within
content and waste reduction measures Ghana could actively participate in the the rules and mechanisms of the
for key product groups, including progression of international standards. WTO, could contribute to domestic,
packaging.77 These developments, while Ghana can also play a leading role in regional and global efforts to reduce
positive for global circular economy developing the regional standards within plastics pollution and transition to a
objectives, add new complexity for ECOWAS or the AfCFTA. The AfCFTA’s more circular and environmentally
Ghanaian exporters to the EU. Annex on TBT encourages members sustainable global plastics economy.”82
to develop regional standards under The focus areas of the dialogue
Trade agreements commonly include the umbrella of the African Standards include improving transparency,
provisions for technical barriers to Organization (ARSO) or the African monitoring trade trends, promoting
trade (TBT), which aim to reduce Electro-Technical Standardization best practices, strengthening policy
unnecessary and discriminatory Commission (AFSEC) where no relevant coherence, identifying scope for
barriers by privileging the use of international standard currently exists. collective approaches and assessing
international product standards This could present an opportunity for the capacity and technical assistance
as a basis for countries’ technical Africa to develop plastic recycling needed.83 Ghana does not currently
regulations. TBT chapters also tend to standards for various end-use participate in this initiative.
encourage harmonization, equivalence applications, including food-grade rPET.
and mutual recognition to reduce The World Economic Forum’s Regional Other relevant initiatives taking place
the friction of multiple standards Action Group for Africa is already at the WTO include the recently
and approaches. Some recent exploring a common regional standard launched Structured Discussions on
trade agreements go a step further for food-grade rPET with the African Trade and Environmental Sustainability.
and contain specific provisions to Circular Economy Alliance (ACEA) Of particular importance for Ghana,
encourage a circular economy.78 and the ARSO.80 Developing regional which does not participate in this
standards could reduce non-tariff initiative either, would be the role
In the case of plastics and plastic barriers to trade in recycled plastic of the WTO in capacity building
waste management, the limitations bottles and other circular plastics. and technical assistance, including
of international standards in areas strengthening customs controls systems.
such as defining easy-to-recycle The EU-Ghana EPA could be leveraged The latter could be linked to the WTO’s
or contaminant-free waste, and to help Ghana-based exporters Trade Facilitation Agreement. It would
establishing quality thresholds for comply with the elevated plastics also be useful to explore ways of
different grades of recycled plastic standards being developed in the EU, linking the WTO’s technical assistance
present challenges. To be clear, some specifically, with the aim of improving programmes with those administered
plastic waste-related standards exist the quality and competitiveness of by the WCO and the Basel
but with varying degrees of relevance. Ghanaian products within the EU Convention.84 With particular regard
These include: the International market. The EU-Ghana EPA encourages to the recycling and disposal of plastic
Standards Organization (ISO)/BSO cooperation between states to waste, the Basel Convention provides
12418-1:2012 on post-consumer enable greater conformity with EU a platform for policy development
PET bottle recyclates; ISO 15270: rules and regulations. It provides for which includes technical assistance,
2008 which sets out guidelines for capacity-building in the public and partnerships, and more.

34 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Conclusion
Taking action on plastic waste in
this way could enhance Ghana’s
profile in global trade arenas and
facilitate low-carbon economic
This paper has discussed Ghana’s recovering and recycling plastics, in the future. That includes the AfCFTA, growth and industrialization.
plastic pollution challenge and how focusing on deliberately creating the EU-ECOWAS EPA – should it
the transition to a circular economy demand for recycled plastics through be ratified in future – any potential
can be supported by trade policy. policy stimuli. This could be include post-AGOA agreement with the
It has shown that not only can trade mandating a minimum recycled PET United States and any enhanced
policy help mitigate the environmental (rPET) content for beverage bottles arrangement with the United Kingdom.
risks, but it can also create new or incentivizing the housing sector If it wants to influence ongoing trade
economic opportunities for investment, to use materials such as bricks and negotiations, it is important that
jobs and the informal sector – the pipes made from recycled plastics, Ghana invests resources in developing
latter of which forms the bedrock for example. The effectiveness of negotiators who are well-versed in
of the country’s waste collection this approach is illustrated by South environmental challenges and who
infrastructure. Taking action on plastic Africa where recycled plastics have the ability to shape the agenda
waste in this way could enhance have been successfully integrated and take the lead on critical issues
Ghana’s profile in global trade arenas into the local economy, resulting by developing effective coalitions.
and facilitate low-carbon economic in a vibrant recycling industry. Technical assistance and capacity
growth and industrialization. building could play an important role
As the plastic value chain is a in achieving this.
The paper highlights the key global one, trade necessarily plays
challenges and opportunities related an important role, but its positive A proactive approach to aligning
to Ghana’s plastic waste management contribution is not a given. This paper Ghana’s plastic waste management
and develops several policy options has identified four key areas in which ambitions with its trade agenda will
for Ghana to consider as it embraces trade agreements can help Ghana necessitate adequate institutional
a circular plastics framework. The advance its waste management foundations. To orchestrate a
progressive steps Ghana has taken agenda: controlling the import of coordinated approach, Ghana
in developing a National Plastics waste plastic, facilitating imports of might want to consider establishing
Management Policy and adopting the relevant goods, attracting investment an inter-ministerial committee. As
NPAP model, as well as its ongoing and developing export markets. In demonstrated in this case study, the
development of a national plastic addition, it has identified not only Ministry of Trade and Industry have a
action roadmap, are significant and opportunities, but also challenges vital role to play in such a committee.
welcome. To complement these, this that must be addressed, including
paper offers practical policy options those associated with the lack of Finally, public-private dialogue
for dealing with plastic waste in alignment between trade agreements and cooperation will be essential
Ghana. These include taking steps and the Basel Convention, the lack as Ghana continues to develop
towards biomass or carbon feedstock of classification of different types of its plastic waste management
technology – a potential avenue of the plastic waste in the HS, implementing strategy and trade policy priorities.
future of plastics – particularly if Ghana and streamlining the PIC procedure Indeed, the end-goals of trade
aims to pursue upstream industrial mandated under the Basel Convention policy in this context are to send
development. Among other measures, for certain types of plastic wastes, clear market signals that create
disincentivizing PET bottles in certain the need to include relevant services cost parity for recycled plastics and
channels where the returnable glass subsectors in services schedules, circular materials and for Ghana to
bottle or aluminum can could serve and the absence of a widely reduce its plastic pollution as part
as effective substitutes could help accepted, relevant international of a transition to a more circular
stem the surge in single-use plastics. standards for food-grade rPET. economy. Private sector insights
Ghana could also implement a can help ensure policies are aligned
Deposit Refund Scheme (DRS) at Ghana will have most leeway to with industrial realities, while private
both trade and consumer levels. align its trade and plastic waste players must also actively pursue
management agenda in trade their own progressive plastic waste
Significantly, the paper advocates agreements that are still under management strategies to support
for a market-oriented approach to negotiation or that will be negotiated Ghana in reaching its objectives.

36 Trade and the Circular Economy: A deep dive into plastics action in Ghana
Acknowledgements Endnotes

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