Plastic Credits

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.