What are Plastic Credits?
Plastic credits or Circular Economy credits are a market-based instrument designed to channel financing toward projects that recover, recycle, or prevent plastic pollution in the environment, especially in oceans and rivers. Each credit represents a specific amount of responsibly managed plastic (1 ton), allowing companies or individuals to offset their plastic footprint.
Action projects
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Collection: Cleaning beaches, rivers and oceans.
Recycling: Processing of plastics for reuse.
Prevention: Replacement systems ( e.g. biodegradable materials) or production reduction.
Quantification
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The recovered or avoided plastic is measured (tons)
Baseline: Comparison with the scenario without intervention
Certification
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Independent standards verify and issue credits.
1 credit = 1 ton of plastic managed responsibly.
Standards and certification bodies
Verra
( Plastic) Waste Reduction Standard): Leader in plastic credit methodologies.
Plastic Bank
Focus on coastal communities (recycling with social impact).
Zero Plastic Oceans
Certification for ocean harvesting projects.
Circulate Capital
Investments in recycling infrastructure.
Key benefits
Pollution reduction
Prevents plastics from reaching marine ecosystems.
Circular economy
Integrates informal recyclers and creates value chains
Social
Employment in vulnerable communities.
Environmental
Less burning of plastics (reduces CO₂ emissions).
Education
Awareness on waste management.
Market prices
Variables
$150 - $750 USD per ton of recycled plastic depending on the typeof activity carried out to obtain the plastic.
Factors:
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Type of plastic ( e.g. PET is worth more than mixed plastics).
Location ( e.g. remote coasts are more expensive).
Social impact (projects with communities receive premium prices).
Criticisms and challenges
Future trends
📋 Regulation
Laws requiring extended producer responsibility (EPR).
🔗 Technology
Blockchain to make supply chains transparent.
🌿 Carbon Integration
Projects that generate plastic + carbon credits ( e.g. , avoiding burning waste).
Who buys them?
Consumer goods companies
( e.g. , Unilever, Coca-Cola).
Tourism sector
(hotels, cruises).
Fashion brands
(for sustainable packaging).
Governments
with plastic neutrality goals.
Project examples
• India: PET bottle recycling in formal infrastructure; loans financed by clothing brands.
• Philippines: Exchange systems (plastic for money or services) in rural areas.