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:

  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 to further establish and improve the platform of the Circular Action Hub (Brazil).

Milestones:

Mid 2021

Plastic waste baseline established to assess additionality and environmental impacts (India)

End 2021

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

Mid 2022

1000 circular credits issued (Brazil and Mexico) and robust principles and criteria for Circular Action Hub established

Project partners:

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