
PLASTIC CREDIT : WHAT IS IT?
A plastic credit is a transferable certificate representing a specific amount of plastic (usually by weight) that has been collected, recycled, or removed from the environment to combat plastic pollution. As per the WWF (2021), it’s a measurable unit of impact targeting hard-to-manage plastics, like low-value items (e.g., sachets) or costly-to-collect plastics (e.g., ocean-bound or remote plastics). The mechanism works on a results-based model, where organizations receive funding after achieving verified outcomes, such as plastic recovery, recycling, or reduced usage.
PLASTIC CREDIT BENEFITS
1. Environmental Benefits: Plastic is inexpensive to produce, which often makes the labor costs for its collection and recycling economically unfeasible. As a result, plastic waste accumulates in natural environments, including oceans, mountains, and landfills. Plastic credits help bridge this gap by providing much-needed financial support for collection and recycling efforts. This funding incentivizes the removal of plastic waste from the environment and supports a more circular plastic economy.
2. Health Benefits: Plastic waste is generated at a rate far exceeding our capacity to recycle or repurpose it, leading to significant pollution. Over time, plastics degrade into microplastics, which enter the food chain and ultimately the human body, posing serious health risks. By reducing the volume of unmanaged plastic waste, plastic credits contribute to limiting human, animal, and marine exposure to harmful plastic particles.
3. Community Benefits: Plastic crediting programs recognize the essential role of the informal waste sector in managing plastic waste. These programs often incorporate safeguards and standards aimed at improving the livelihoods and working conditions of waste workers. This includes measures to prevent child and forced labor, ensure workplace health and safety, and provide social and economic benefits to underserved communities.
4. Plastic Neutrality: By purchasing plastic credits, businesses acknowledge and take responsibility for the plastic they introduce into the environment. These credits help offset a company’s plastic footprint, enabling them to work toward plastic neutrality—especially in regions where Extended Producer Responsibility (EPR) regulations are not yet enforced. This commitment signals a proactive approach to environmental stewardship.
Uses of Plastic Credit
► Fighting plastic pollution – Plastic credits help reduce the amount of plastic waste that ends up in the environment.
► Encouraging collection and recycling – They provide incentives to collect and recycle plastic waste, reducing pollution.
► Funding solutions – Plastic credits support projects and infrastructure for plastic waste management and recycling..
► Promoting a circular economy – By encouraging reuse and recycling, plastic credits contribute to building a circular economy.
► Supporting local communities – These projects can create jobs, support education, and improve infrastructure in local areas.
► Companies use plastic credits to demonstrate their commitment to sustainability and responsible waste management.
► Complementing EPR – Plastic credits help manage complex waste like multi-layered or non-packaging plastics.
► Eco-modulated fee option – Plastic credits offer an alternative for managing hard-to-recycle plastics under eco-fee systems.
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