This essay first appeared in Circularity Weekly, our free e mail e-newsletter.

There’s a brand new child on the block of sustainability claims being made by companies: “plastic neutrality.” Because of the rise in plastics pledges, an rising and undefined marketplace for plastic offsets is simply starting to take form. And, very similar to the marketplace for carbon offsets, it’s messy. 

Thankfully, two sources launched final week — a place paper by WWF and a report by The Flow into Initiative (TCI) titled “A Sea of Plastics Claims and Credit: Steering Stakeholders In direction of Impression” — have taken the primary significant try to assess the panorama of plastic requirements, certifications and credit score packages — and warning in opposition to potential pitfalls because the market develops. 

Listed here are 5 issues to know in regards to the rising marketplace for plastics credit: 

1 . There isn’t a business normal or definition 

WWF defines a plastic credit score as a “transferable unit representing a selected amount of plastic that has been collected and probably recycled from the atmosphere.”

For instance, an organization that makes use of virgin plastic to supply PET bottles in California may buy credit for the equal quantity of plastic to be collected elsewhere on the earth. The brand new time period “plastic neutrality” is getting used to convey that an organization has offset its “plastic footprint.”

Organizations similar to rePurpose and The Plastic Financial institution, in addition to third-party organizations similar to Verra’s 3RI Initiative, are promoting claims to plastics credit in alternate for a monetary funding in initiatives to gather plastic from the atmosphere or set up infrastructure to forestall additional plastic leakage into waterways and oceans. In the identical manner that an organization’s carbon credit score could offset its U.S. emissions by the carbon mitigation related to a forest planted in Rwanda or a direct air seize undertaking in Canada, a plastic credit score may go to paying waste collectors in Bangalore or increasing a plastic processing facility in Indonesia. 

In line with TCI, 32 plastics claims and crediting packages are within the market. Nevertheless, there is no such thing as a formal or standardized definition for plastics crediting, and such claims are inconsistently outlined and utilized in a different way from group to group. Accordingly, no business normal or framework exists to find out the credibility of those tasks.

2. We’ve seen this film earlier than

The plastics-credit dialog leaves me with a powerful feeling of déjà vu. Sustainability practitioners have spent the previous couple of a long time defining and debating the function of carbon credit within the transition to a clear financial system, and plastics credit will not be essentially totally different. There’s so much to be realized from the market mechanisms that carbon credit and renewable vitality credit have taught us — each constructive and detrimental — similar to prioritizing additionality and specializing in social co-benefits of those tasks.

three. The potential for greenwashing is excessive

Plastics crediting schemes are primarily based on the premise that recycling plastic and protecting it out of nature equals success, which is an issue. A laser concentrate on offsetting business-as-usual fails to account for the significance of supply discount, materials standardization and all the things else it’s going to take to construct a round financial system for plastics. In different phrases, the entire level is to cut back or eradicate plastic waste, not offset it.

Within the absence of undertaking transparency, constant reporting and business requirements, the potential for double-counting credit is excessive. WWF and CTI each spotlight the potential dangers related to deceptive claims and name for a concentrate on additionality to make sure that investments have actual impacts (à la renewable vitality credit). 


Whereas the thought of “plastic neutrality” could sound compelling, it’s additionally vital to consider the context. Take into account carbon markets once more. Except for a small handful of firms, similar to Microsoft, most organizations that select to offset their carbon emissions don’t keep in mind the debt of legacy emissions that they’ve pumped into the environment for many years. The identical is true for plastics: An organization’s transfer to offset the manufacturing of sachets and bottles going ahead doesn’t acknowledge the tons of packaging already in landfills, waterways and oceans. 

four. It may drive vital funding into communities and waste administration techniques

If completed proper, plastic crediting techniques will fund or spend money on tasks that tackle international plastic air pollution, significantly in locations with out formal recycling infrastructure. That might herald vital funding in waste assortment. Within the absence of economics to drive market demand for the gathering of plastics, the worth that manufacturers place in related claims may assist spur market improvement. 

Many of those tasks even have a social mission and will help native financial improvement similar to offering truthful wages for waste collectors and producing new job alternatives. Nevertheless, these co-benefits will not be assured and will probably be vital for these tasks to work inside their native context to help native companies, waste collector livelihoods and different ongoing initiatives fairly than be in competitors with them. 

5. Plastic credit will not be a long-term technique 

We received’t offset our method to a round financial system and plastic-free seas. A systemic downside requires a holistic set of options and firms should first prioritize the discount of plastic waste. They need to design out pointless supplies, transition to utilizing supplies which can be broadly recyclable, use recycled content material and prioritize reuse techniques.

Provided that U.S. customers care extra about ocean plastics than they do about local weather change, it’s no shock that firms are looking for methods to assert and talk their involvement in plastic restoration. And simply as carbon offsetting performs a vital function within the transition to a net-zero financial system, so too will plastics offsetting within the transition to a round financial system. 

I’ll be paying shut consideration to how firms fold plastic crediting into their broader packaging methods — and, I hope, use them as a stepping stone fairly than an endpoint. 

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