· 7 min read
The plastic credit revolution: turning trash into treasure for a cleaner planet
The planet is drowning in plastic. Each year, approximately 11 million tonnes of plastic waste enter our oceans. Once there, it doesn’t just politely float away; it breaks down into microplastics that are even more challenging to remove. It's clogging up marine ecosystems, killing off species, and even turning up in the seafood we eat. And yet, while the world seems to be addicted to plastic, there is a new approach to tackling this crisis;
Plastic Credit!
What exactly is a plastic credit?
In layman's terms, a Plastic Credit is akin to a "permit" that companies can buy to offset their plastic waste by financing the removal or recycling of an equivalent amount of plastic from the environment.
Think of it as a deposit you put down for someone else to go and clean up the plastic mess on your behalf.
It's simple, it's measurable, and more importantly, it’s a tangible environmental solution.
While Carbon Credits often require complex calculations and can be difficult to trace or verify, Plastic Credits offer something more straightforward.
You collect the plastic, weigh it, recycle or dispose of it responsibly, and the impact is immediately visible.
A corporation can now say, "We've offset 500 tonnes of plastic waste"; and they’ll have physical evidence to back it up.
The growing market for plastic credits
The global plastic credit market is rapidly gaining momentum, with increasing interest from corporations, governments, and environmental organisations.
According to the Plastic Pollution Coalition, the market for plastic credits is estimated to grow to USD 20 billion by 2030.
This is driven by both regulatory pressure and the rising demand from consumers who expect businesses to take responsibility for their plastic footprint.
Companies are beginning to see plastic credits as an essential part of their sustainability strategies, not just an option.
Large brands, including those in consumer goods, technology, and retail, are leading the charge, recognising the need for real-world solutions to plastic waste.
With Extended Producer Responsibility (EPR) schemes gaining traction worldwide, the demand for plastic credits will only increase as businesses seek practical ways to meet these obligations.
Why plastic credits hold more impact than carbon credits
Now, you might ask: why bother with Plastic Credits when the world is still struggling to manage its carbon emissions?
The answer lies in both scale and visibility.
While carbon emissions are often intangible and spread across various industries,
plastic pollution is something you can see and touch;
and there’s already over 150 million tonnes of plastic waste floating around our oceans, with more added each day.
Unlike carbon dioxide, which we can’t scoop up and weigh, we can quite literally collect and quantify plastic waste.
The ocean's role in climate regulation
To understand why this is so critical, we need to appreciate the role oceans play in climate regulation.
The oceans absorb 30% of the CO2 we produce, but their capacity to do so is declining.
This is where plastic pollution comes in: when plastic breaks down in the ocean, it releases toxic chemicals that interfere with the ocean’s ability to regulate temperature and absorb carbon.
Moreover, oceanic ecosystems are deeply interconnected.
If the seas are unhealthy, it impacts coastal communities, marine biodiversity, and global climate patterns.
Cleaning up plastic from the oceans, especially from
near-shore seabeds and floating plastic patches, isn’t just about protecting marine life; it’s about safeguarding the planet’s climate systems.
Tackling the plastic problem: global initiatives
Governments are waking up to this issue.
In Norway, for example, the government has launched an ambitious Extended Producer Responsibility (EPR) programme, requiring companies to take responsibility for the entire lifecycle of their products, including plastic packaging.
Norway’s innovative system links plastic credits with national waste management strategies, making companies responsible for collecting more plastic than they produce.
Not only does this incentivise proper recycling, but it also funds projects that remove plastic waste from oceans and rivers.
Singapore, another forward-thinking nation, has implemented its Zero Waste Masterplan. Under this, Singapore aims to reduce waste sent to landfills by 30% by 2030, with plastic waste being a key focus.
Singapore is also exploring advanced technologies such as chemical recycling and waste-to-energy projects, turning collected plastic into valuable resources for energy production.
The country’s plastic credits system has already made waves across the corporate sector, showing a direct link between environmental responsibility and business sustainability.
From ocean plastic to ESG gold: the business case
But how does all of this link to ESG (Environmental, Social, and Governance) efforts?
Well, companies worldwide are increasingly pressured to meet stringent ESG criteria.
Plastic Credits offer a clear, measurable way to hit those targets.
Investing in plastic cleanup and recycling has the dual benefit of not only cleaning the environment but also demonstrating immediate action towards sustainability.
Unlike carbon credits, which can often feel nebulous, plastic credits deliver hard results: cleaner oceans, improved marine biodiversity, and direct contributions to the
Sustainable Development Goals (SDGs), particularly SDG 14: Life Below Water and SDG 12 (Responsible Consumption and Production).
Companies that invest in plastic credits or set up their own cleanup projects have a powerful ESG narrative to tell, with direct visual impact and undeniable results.
They are not just paying for a theoretical reduction in emissions, they’re removing waste, restoring ecosystems, and creating jobs in local communities.
Empowering coastal communities
A particularly compelling aspect of the Plastic Credit system is its potential to empower local communities, especially nearshore fishing villages. These communities are on the front lines of the plastic crisis, with pollution directly impacting their livelihoods.
A well-implemented plastic credit system could provide an additional source of income for these communities.
Fishermen, who may have seen their fish stocks decline due to plastic pollution, could supplement their income by collecting plastic instead.
This could, in turn, help replenish marine biodiversity as fewer plastics in the water allow ecosystems to recover.
Incentivising plastic collection from the shorelines and near-shore seabeds also opens up new opportunities for Waste-to-Energy (WtE) projects.
The collected plastics could serve as a feedstock for producing clean energy, creating a closed-loop system that addresses both pollution and energy needs.
A future roadmap: the tangible impact
What does the future hold for plastic credits? Ideally, as plastic credit schemes grow, we’ll see a reduction in the amount of plastic reaching landfills and oceans.
The road ahead includes better waste segregation at the source, more investment in recycling infrastructure, and incentives for companies to not only neutralise but also reduce their plastic usage.
Governments and corporations need to invest more heavily in these schemes. Why? Because it’s tangible, measurable, and offers immediate benefits.
Whether it’s ensuring your company’s ESG commitments are watertight or empowering local communities, plastic credits hold the promise of direct, tangible and visible results.
We can’t afford to wait, our oceans are crying out for help.
Conclusion: beyond greenwashing
Plastic Credits offer a straightforward, actionable path to cleaner oceans and healthier ecosystems.
They’re not a marketing gimmick or greenwashing tactic; they represent real environmental action that can be measured in tonnes of waste removed from our planet.
With government initiatives like those in Norway and Singapore showing what’s possible, and businesses realising the value of direct action, the future looks bright. Not only can we reduce plastic waste, but we can also empower communities, protect marine life, and tackle the global climate crisis head-on.
This article is also published on Linkedin. illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
