Plastic credits such as the ones it issues itself should be an integral part of a new global plastic treaty framework to help close the estimated $40 billion finance gap to stave off the plastic crisis, environmental credits standard body Verra has told the UN.
Verra has submitted recommendations to the secretariat of the third session of the Global Plastic Treaty’s Intergovernmental Negotiating Committee (INC-3), saying market-based efforts should be part of the treaty framework, which is slated to be finalised by the end of next year.
“Private sector investment is crucial in addressing plastic pollution. However, raising such investment is currently challenging due to lack of financial incentives and viable business models,” the Verra submission said.
“By combining internal reductions with beyond-value-chain investments in the form of plastic credits, companies can make credible contributions to their plastic stewardship goals.
Private and public institutions could both emerge as buyers of credits, Verra said. As well, a global plastic fund under consideration by government negotiators could use some of its proceeds to fund projects that generate the plastics.
Verra’s submission came after the previous round of talks – which ended in early June with an agreement that a draft treaty should be ready for negotiations by November this year – raised the issue of potentially using market-based mechanisms and other innovative financing approaches to help fund efforts to solve the crisis.
US-based non-profit Pew Charitable Trusts has estimated additional funding of $40 billion would be needed by 2040 to succeed.
Verra, best known for operating the world’s biggest voluntary carbon credit standard, also issues two types of plastic credits – one for collection and for recycling.
Only a handful of projects have received credits so far as the plastic market is still in its infancy.
The Plastic Credit Exchange (PCX), which has entered into agreements with Pepsi Co. and cosmetics firm L’Oreal in the Philippines, is another early market participant.
“Verra recommends that the legally binding instrument promote the use of high-integrity credits by defining plastic credits as those issued by a globally recognised, independent standard such as Verra’s Plastic Standard,” Verra said in its submission.
It also recommended leveraging existing multilateral environmental agreements (MEAs) to maximise the effectiveness and credibility of crediting programmes.
“Exploring collaboration and complementarity with existing MEAs has also been highlighted” in negotiations, it said.
“The Kunming-Montreal Global Biodiversity Framework already recognises biodiversity credits as an innovative mechanism to substantially increase the financial resources required for implementing national biodiversity strategies and action plans (target 19 (d)), and a similar opportunity exists for inclusion of plastic credits in the legally binding instrument on plastic pollution.”
The third round of negotiations will be held in Nairobi over Nov. 13-19, and submissions to the INC secretariat closed on Aug. 15. The Verra paper was dated that day, but only made available to the public this week.
news@carbon-pulse.com
** Click here to sign up to our weekly biodiversity newsletter **
