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 components:

  1. Development of a process standard (ValuCred) for the transparent calculation, verification and validation of plastic credits (India and Vietnam).
  2. Establishment of a scientific framework and benchmarks for the environmental impact assessment of Plastic Credits projects (India).
  3. Local collectors/recyclers are supported in achieving global market standards and offering materials through a global marketplace (Mexico).
  4. 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).

Milestones:

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Q3 2021

Guide on best practices on the plastic waste management sector developed in 3 different languages: English, Spanish and Portuguese.

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End 2021

Standardised process model for Plastic Credits developed (and ready to be tested in India and Vietnam)

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Mid 2022

More than 1,500 circular credits issued (Brazil and Mexico) and robust principles and criteria for Circular Action Hub established

Resources

Achievments

ValuCred Standard Process Model Handbook

The ValuCred Handbook introduces the key concepts of the Standard Process Model (SPM). It explains guiding principles for the integration of minimum requirements for the plastic credit market to foster greater transparency and accountability of all stakeholders involved.

Applying the ValuCred Standard Process Model (SPM) and its digital interface leads to ESG-relevant data collection. The ValuCred reporting structure is shown in an Exemplary ESG-Report of a Service Provider.

The ValuCred Standard Process Model is visualized in flow charts to show the logical and temporal sequence of the process steps: Overall Flow Chart (for both brands and service providers);  Flow Chart for BrandsFlow Chart for Service Providers


Achievments

Interim Report and Final Assessment Report on the Pilot Regions Goa, Maharashtra, Kerala

The  pilot project supported the implementation of a waste management structure in India’s rural regions. It thus aimed to improve the current waste collection and treatment structures in the pilot regions Goa, Maharashtra, and Kerala. The project focused on low value plastics (LVP), and especially multi-layer plastics (MLP) that have no market value.



Project partners:

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