Plastic Credits for inclusive & transparent circularity

LOCATION:

India, Mexico, Vietnam, Brazil

TARGET GROUP:

Workers throughout local waste value chain
Local recycling facilities
Systemically underfunded low-income communities and (semi-)rural areas
Producers with an interest in spearheading potential EPR solutions in low-income countries
Plastic credit registries and trading platforms

CHALLENGES:

No adequate working conditions for (informal) workers in waste sector
Lack of waste management services and infrastructure in low-income countries
Need for funding of waste collection and treatment services

SOLUTION:

The project aims to establish reliable financial instruments, Plastic Credits, by integrating transparent and inclusive mechanisms throughout the entire plastic waste value chain that can help countries finance systemic improvements of their waste collection and treatment services.

DESCRIPTION:

Plastic Credits are an innovative market mechanism to provide a sustainable source of income for low-income groups in developing countries that engage in waste collection of plastics and its recovery and recycling. The aim of this project is to establish Plastic Credits (compensation payments) as a robust market mechanism, linking formal and informal waste recovery and recycling projects worldwide with companies and investors willing to support these project activities through performance-based payments and ensure their long-term financial sustainability.

The project consists of 4 component:

Development of a process standard (ValuCred) for the transparent calculation, verification and validation of plastic credits (India and Vietnam).
Establishment of a scientific framework and benchmarks for the environmental impact assessment of Plastic Credits projects (India).
Local collectors/recyclers are supported in achieving global market standards and offering materials through a global marketplace (Mexico).
Pilot the concept of performance-based payments for environmental services through the Circular Credits Mechanism to further establish and improve the platform of the Circular Action Hub (Brazil and Mexico).