Circular Economy
Plastic Credit
Definition
A plastic credit is a transferable unit — typically representing one tonne of plastic collected or recycled beyond what would otherwise have occurred — issued under crediting standards such as Verra's Plastic Waste Reduction Standard. Companies purchase credits to compensate for plastic they place on the market, often toward claims of "plastic neutrality", by funding waste collection and recycling infrastructure, usually in developing countries.
References
Supports definition and framing.
Overview
How it is used
Credit buyers are typically consumer brands; projects are waste collection and recycling operations in regions with high leakage risk. Claims guidance from standard-setters and regulators is still consolidating.
Why it matters
As the global plastics treaty process advances and producer responsibility schemes spread, plastic credits are a live test of whether market-based compensation can complement — rather than delay — absolute reduction of plastic pollution.