Verra staff recently attended the fourth session of the Intergovernmental Negotiating Committee (INC-4) to develop an international legally binding instrument to curb plastic pollution in Ottawa, Canada.
Discussions about the treaty’s financial mechanisms took on a prominent role at INC-4. It has become increasingly evident that any agreed-upon measures will depend on the necessary resources to finance their implementation. Verra, as an accredited observer, engages in the treaty negotiations to highlight that the Plastic Waste Reduction Program (Plastic Program) provides a framework to mobilize finance for plastic waste collection and recycling activities. Countries need a suite of solutions to address plastic pollution downstream and reduce virgin plastic usage upstream. Outcomes-based finance instruments, such as Plastic Credits, are one of many tools that can be leveraged to support the implementation of the Global Plastic Treaty.
Speaking Engagements on Financing Plastic Waste Reduction
Robin Rix, chief legal, policy, and markets officer, represented Verra on two panels.
At “Harness Outcome-Based Financing to Address Plastic Pollution,” a side event hosted by the World Bank, panelists shared recent analytical research findings on how leveraging outcomes-based financing instruments can support solutions for plastic pollution. Robin highlighted the value of Verra’s Plastic Program for quantifying the impacts and outcomes of projects working to scale up the collection and recycling of plastic waste. He further stressed the importance of the Verra Registry in increasing market transparency and trust by making key project information publicly accessible.
Robin also spoke on the “Connecting Capital Markets with Plastic Waste Reduction” panel, co-hosted by Citibank and Plastic Collective. This session centered on the groundbreaking outcomes-based bond recently issued by the World Bank. This unique bond intends to leverage Plastic Credits, which are generated by the projects seeking registration in Verra’s Plastic Program, to meet its interest obligations. Robin discussed the Plastic Program’s crucial role in providing a framework to measure and verify outcomes associated with the projects.
Looking Ahead
INC-4 concluded with a mandate for intersessional work. Verra plans to follow the relevant conversations closely, especially as they regard analyzing the financial package needed to implement the treaty.
Verra will attend the fifth session of the negotiations (INC-5) in Busan, Republic of Korea, from November 25 through December 1, 2024.