Eunomia’s latest report demonstrates that full subsidy removal would lead to substantial reductions in polymer production, particularly in economies with high subsidy levels. Meanwhile, the impact on consumer prices would be minimal. For fast-moving consumer goods such as bottled water, the average price increase is estimated between just 0.14% and 0.90%.

The research, in collaboration with the Quaker United Nations Office with grant funding from the Minderoo Foundation, examines the scale of subsidies for primary polymer production (PPP) and models the potential impacts of removing these subsidies on global polymer production volumes and on prices of various consumer products containing plastic.

In August 2025, the Intergovernmental Negotiating Committee on Plastic Pollution convened to advance a Global Plastics Treaty aimed at tackling plastic pollution. Among the measures under consideration is the phase-out of PPP subsidies, which currently lower production costs and incentivise investment in virgin fossil-based polymers.

Eunomia’s report presents the third phase of Eunomia’s research, supplementing findings of earlier phases (one and two) by examining a broader range of subsidy types to not only include feedstock and energy subsidies but also a wider range of other government support measures.