Verra has released a new discussion paper “Plastic Credits as an Innovative Financial Instrument” (PDF) to introduce how Plastic Credits could support the implementation of inclusive extended producer responsibility (EPR) systems in emerging markets and developing economies (EMDEs). The paper was published ahead of the intersessional expert group meetings (external) that will take place August 24-28 in Bangkok Thailand. EPR is largely accepted as the global best practice for financing and operating the collection, sorting, and recycling of waste needed to address plastic pollution downstream.
Verra has previously highlighted that Plastic Credits issued by Verra’s Plastic Program can support the implementation and effectiveness of EPR schemes. The new discussion paper looks specifically at how such support could impact EMDEs, which are often disproportionately burdened by plastic pollution, but lack the financial and administrative resources to expand waste management infrastructure and implement EPR systems.
The paper highlights that Plastic Credits present an opportunity to support the implementation of inclusive EPR in EMDEs by doing the following:
- Mobilizing additional financing required to overcome the plastic waste management infrastructure deficit
- Accelerating comprehensive waste collection and treatment
- Providing data, infrastructure, and a measurement framework to operationalize EPR schemes
- Supporting a just transition and equitable inclusion of waste pickers
The discussion paper seeks to contribute to the broader conversation around innovative financing instruments for aligning financial flows and catalyzing finance for addressing the global plastic crisis. The paper is a precursor to a more detailed case study report that will look at the specific opportunities for Plastic Credits to support the implementation of inclusive EPR in Ghana, which Verra will use as an archetype of other EMDEs. The upcoming report will analyze key waste management data and perspectives from stakeholders on-the-ground. Verra expects to release this full report ahead of fifth session of the Intergovernmental Negotiating Committee to develop Global Plastics Treaty (INC-5) later this year in Korea.
