Solving plastic pollution means addressing several challenges across the value chain.
Access to
Waste Management
People, including 2 billion in rural areas and 700 million in urban areas, lack access to waste management. [1]
Plastic Waste
Infrastructure
Tonnes of waste, remain uncollected each year, as a result. [1]
Aggregation, Sorting
and Recycling:
Projected cost of municipal solid waste management by 2050 if remains unaddressed. [1]
Plastic Material Value
Virgin plastics are produced than the amount of plastic collected for recycling in 2019 and 2021. [2]
We know how to
fix the world’s
plastic problem
fix the world’s
plastic problem
Introducing Financial Mechanisms like Plastic Credits, to provide
the necessary funding and incentives for sustainable plastic waste management.
What is
A Plastic Credit?
A plastic credit is a transferable unit representing a specific quantity of plastic that is avoided from use, collected and managed, or recycled. [3]
Plastic Credits can be purchased by companies to make investments in solutions that reduce plastic pollution and boost recycling efforts. When implemented responsibly, they can be used in both a voluntary and regulatory capacity to demonstrate strong corporate environmental governance. More importantly, they help direct funding to regions where the conventional economic model for plastic waste management falls short.
Plastic credit purchases are used for voluntary and mandatory purposes:
Voluntary Purchase
Currently, plastic credits are primarily driven by consumer demand and brand value voluntarily to address plastic pollution.
Mandatory Purchase
Plastic credits are emerging as a regulatory instrument. For example, plastic credits have been integrated for EPR purposes in the Philippines while gradually working to reduce plastic usage.
Pollution Reduction Project Implementation
Within the certification period, the project owner develops and implements initiatives aimed at reducing plastic, with the generated revenue being reinvested to support these efforts.
Organisations that generate credits through recovery, processing or recycling activities
Plastic Credit Certification Process
Projects are certified based on a plastic crediting standard, which involves steps such as validation, registration, verification, and credit issuance.
Organisations that establish the standards, registers the project and issue credits (e.g. Verra, ZPO, PCX)
Organisation that validates and verifies that projects comply with the standard’s requirements (e.g. Control Union, TÜV SÜD, Carbon Check)
Plastic Credit Sale and Retirement or Transfer
Plastic credits can be purchased by compliance or voluntary buyers.
Project owners transfer plastic credits to buyers or brokers directly or through a marketplace
Organisations that purchase credits for their use
Organisations that purchase credits for resale
Firms or platforms that supports project owners in the certification process
Types of Plastic Credits
Upstream Credits
Encourage the reduction of plastic pollution by minimising or eliminating plastic use:
Avoidance / Innovation Credits
Reduce plastic use through elimination, packaging redesign, reuse/refill systems or alternative materials. Standards: Plastic Pollution Reduction Standard (PPRS)
Downstream Credits
Address plastic waste that has already been produced, ensuring it is collected, managed, or repurposed effectively:
Collection & Management Credits
Reduce plastic waste in nature through environmental cleanup activities, household collection and management of collected plastic. Standards: Plastic Waste Reduction Waste Collection Credit (PWRS), OBP Credit (OBP), Collection Credit (PPRS), and Circular Credit (CCM).
Landfill Diversion Credits
Reduce plastic waste in landfills by recovering plastic waste from waste dumps or landfills and management through co-processing or recycling. Standards: Plastic Pollution Reduction Standard (PPRS)
Recycling Credits
Increase recycling of plastic waste through mechanical or chemical recycling (e.g., processing plastic waste into secondary raw material). Standards: PWRS, PPRS and CCM
Registered Plastic Credit Projects
North America
Canada
& Caribbean
Europe
Central Asia
Asia
& Pacific
What makes a plastic collection project credible?
Aligned with the ISEAL Code of Good Practice, credible plastic credit projects must meet these key criteria [3, 6, 7] :
Accurate
Projects follow strict methodologies and reporting to measure environmental and social impact, ensuring transparency in data collection – from plastic recovery to fair labour practices.
Additional
To generate plastic credits, projects must show that credit sales fund increased plastic reduction, collection, or recycling beyond a set baseline. This can mean recovering more plastic or maintaining recovery levels while improving wages, working conditions, or waste management quality.
Traceable
Every plastic credit is uniquely recorded to prevent double-counting and ensure accountability. Transparency in reporting, covering location, crediting periods, and material types, allows stakeholders to make informed decisions.
Third Party - Verified
Independent auditors rigorously assess each project to confirm compliance with certification standards. This impartial verification builds trust and ensures the authenticity of environmental and social outcomes.
Legal
A project must comply with all relevant laws, and uphold human rights as well as Indigenous rights. Obtaining community consent and ensuring fair labour practices demonstrate the project's commitment to worker well-being and community rights.
Waste Treatment
Collected plastic must be properly processed to prevent it from re-entering the environment. The project covers approved end-of-life solutions like recycling, waste-to-energy, or sanitary landfills, to ensure responsible waste management.
Concerns around plastic credits
As the plastic credit industry is still emerging, it’s essential for businesses and organisations to grasp the challenges and risks tied to plastic credits. Recognising these will enable businesses to engage appropriately.
Diminishes efforts to reduce plastic
Plastic credits could shift the focus to downstream solutions, like waste collection and recycling, and disincentivise companies from reducing plastic use.
Plastic credit buyers must consistently prioritise prevention, reduction, and reuse wherever feasible. Plastic credit schemes are a tool for corporations/organisations to contribute to and finance downstream solutions while simultaneously working on upstream solutions.
Potential greenwashing claims
Claims like ”offsetting” or “neutrality” could create a misleading impression that purchasing plastic credits eliminates their environmental impact.
Plastic credit buyers must be transparent and specific regarding their claims. This involves clearly outlining the projects you support and specifying the nature of your contributions to those projects, while adhering to international standards like ISO 14040 series and EU Green Claim legislation.
Lack of additionality
Proving additionality for plastic credit projects can be challenging, as it is hard to show that waste management would not have happened without the plastic credit scheme.
Purchasers of plastic credits are required to finance projects in areas without waste management. Existing plastic credit standards typically impose minimum additionality requirements.
Lack of transparency
The lack of standardised definitions and methodologies, along with limited information on projects and fund distribution, undermines the true impact of Plastic Credits.
Plastic credit buyers need to ensure there is consistent monitoring within the project. This means ensuring the supported project provides clear insights into project outcomes and funding through public registries, third-party auditing, and independent standards.
Social impact on informal waste workers
Concerns exist regarding the possible negative impact of plastic credits on informal workers, who may face exploitation through low wages and unsafe working conditions.
Plastic credit purchasers should verify that the projects they support have social safeguards in both design and execution, thereby enhancing the safety of working conditions for waste pickers. Standards such as OBP Social+ are available to verify social safeguards for Plastic Credit projects.
Benefits of plastic credits
01.
Offers funding for projects tackling plastic pollution and supports waste management infrastructure in remote areas, enabling the collection, cleaning, sorting, and recycling of materials.
02.
Allows collecting plastic from the environment to be financially viable, preventing plastic from further polluting the marine ecosystem.
03.
Puts a cost on plastic use and disposal, encouraging corporations to reduce waste and decrease environmental footprints.
04.
Generates job opportunities for local communities, either by formalising collection teams or establishing recycling crews.
05.
Supports marginalised communities by ensuring safe working conditions, increasing income, and empowering them through technical upskilling, which enables better opportunities and drives plastic reduction through behavioural change.
06.
Reduces plastic pollution in oceans, rivers, and landscapes, protecting wildlife and biodiversity.