Verra, the nonprofit organization that operates the world’s leading carbon crediting program Verified Carbon Standard (VCS) has issued the first credits generated under its Plastic Waste Reduction Program to a project spearheaded by Second Life Thailand – a social enterprise specialized in the development of ocean plastics collection and recycling projects which support grassroot communities on islands and remote coastal areas. These Plastic Credits introduce scale and efficiency into global recycling efforts and accelerate the removal of plastic waste from the environment. 

Verra Issues 1st Plastic Waste Reduction Credits

Plastic Waste

More than 350 million tonnes of plastic are being used every year, and just a fraction of this is being recycled. The Plastic Program is used for consistent accounting and crediting of a variety of plastic collection and recycling activities.

It drives investment into projects that increase the collection of plastic waste from the environment and/or its recycling. The Program enables the independent auditing of projects to determine the extent to which they have reduced plastic waste in the environment and/or increased recycling.

Credits are issued based on how much plastic is collected and recycled above baseline rates (i.e., what would have happened in the absence of the project activity). This “plastic crediting mechanism” provides an efficient and powerful means of financing activities that verifiably reduce plastic in the environment anywhere in the world.

Plastic Waste Reduction Credits

Mid March, Verra issued to Second Life Thailand more than 650 Waste Collection Credits (WCCs) and 60 Waste Recycling Credits (WRCs), each of which represents one metric tonne of plastic waste either removed from the environment or recycled.

The issuance follows an extensive external audit by validation/verification body Control Union and a comprehensive review by Verra. Second Life Thailand works primarily on islands, where it prevents plastic from leaking into the ocean and decimating marine populations. 

The revenue from Plastic Credits makes it possible for Second Life Thailand to initiate and scale up activities that increase the collection and recycling of plastic waste. They include:

• Placing a premium on plastic waste collected from hard-to-reach islands;
• Funding the sorting of collected fishing nets so that those nets made of nylon can be recycled; and
• Providing training, transportation, and personal protective equipment for collectors and recyclers.

What is a Plastic Credit worth?

The price of Plastic Credits will vary based on characteristics of the project from which they are issued (e.g., collection vs. recycling, location, material type, social impact). One credit represents one tonne of collected or recycled plastic waste. Verra has seen initial estimates of credit price ranging from $200 to $800 per tonne.

Plastic Credits can be labeled with additional certifications, for example, a certification for the project’s social and environmental co-benefits (e.g., increased wages, reduced marine pollution). In other markets, additional certifications often increase the value of the credit.

Markets

French cosmetics group Caudalie has emerged as the first buyer of the project. The company purchases Plastic Credits from Second Life’s project to support its “100% Plastic Collect” initiative, which covers its full plastic footprint via this voluntary extended producer responsibility mechanism, and ensures that most of the company’s packaging is made from recycled materials that can be recycled or reused.  

Plastic Credits serve an important function for companies that have taken steps to reduce their plastic footprint within their value chain and seek to address plastic leakage outside their value chain. Purchasing Plastic Credits also reduces the social and environmental risks inherent to the plastic collection and recycling supply chains, as all projects must implement social and environmental safeguards to improve the livelihoods of the workers and community members impacted by project activities. This beyond-value chain investment, facilitated by Plastic Credits, helps finance essential plastic waste management systems across the globe. 

Second Life works with the following companies who seek to support their plastic stewardship strategy through the purchase of Plastic Credits: Caudalie, Clarins, SPF Diana (Thailand) Co., Ltd., Mars, CERPD, GreenPrint, A PDI Company, and ACT Commodities (a global leader in providing market-based sustainability solutions).