To cut down on plastic pollution, plastic credits are one of the tools being considered in UN-led talks in Nairobi.
What are plastic credits?
Plastic credits- It is a market based mechanism that allows companies or individuals to pay for plastic waste collection and recycling in exchange for a credit that offsets their own plastic production or use.
It is similar to carbon credits that many fossil fuel companies have purchased to try to offset their greenhouse gas emissions.
Facilitation- The exchange is facilitated by accreditors like Verra, marketplaces like the Plastic Credit Exchange (PCX), or private companies that trade in credits or organize credit-generating activities.
When companies buy enough plastic credits to offset their plastic footprint over a set period of time, they may claim net-zero plastic.
What are the advantages of plastic credits?
Combat plastic pollution- It can reduce the amount of plastic that enters our oceans, rivers, and landfills.
Financial incentive- It finances waste management infrastructure which helps in plastic waste collection and recycling and fosters sustainable solutions.
Circular economy- The plastic materials are reused and recycled instead of being discarded or leaked into environment.
Eco friendly- They reduce the environmental impacts of plastic pollution, such as greenhouse gas emission, water consumption, land use and biodiversity loss.
Income support- Money raised from waste collection and recycling credits can generate income for the informal waste sector people who pick through waste.
Awareness generation- It will help in engagement among consumers, businesses and government on the issue of plastic pollution and the need for more sustainable solutions.
Proper accreditation- These credits are measurable, traceable, and verifiable, ensuring that they represent actual reductions in plastic waste.
Corporate social responsibility (CSR) - By purchasing plastic credits, companies can demonstrate their commitment to sustainable practices and social responsibility.
What are the disadvantages of plastic credits?
Inefficient- They are not a substitute for reducing plastic use and waste at the source, which is the most effective way to prevent plastic pollution and its environmental consequences.
Lack of clarity- They are not standardized or regulated, which can confuse and mislead consumers and corporates.
Limited scope- They may not address the social and economic aspects of plastic waste management, such as the rights and livelihoods of informal waste collectors.
Poor quality- They may not account for the quality and durability of the recycled plastic, which may affect its environmental performance and value.
Unsustainability- They promote a linear model of plastic production and disposal which would not foster circular economy and result in wasteful production.
Oversight- Plastic credits may not address the root cause of plastic pollution, which is the overproduction and consumption of single-use plastics.
They may create a false sense of sustainability and divert attention from the need to reduce and redesign plastic products.
Inaccurate data - They may rely on self-reported data or inaccurate measurements, which could lead to fraud and double counting.
Fundamental flaw- Certain environmental groups have criticised plastic credits as a greenwashing tool, stating that it encourages burning plastics and creates more emissions and health problems.
What lies ahead?
Plastic credits should align with the existing frameworks and indicators such as Global Reporting Initiative and use a common methodology to measure and report their impact.
They should have independent auditors and certifiers to validate claims and processes and avoid conflict of interest.
They should support livelihoods and well-being of waste collectors and recyclers and create value for low-value plastic.
An example of a socially inclusive scheme is Plastic Bank.
