Verra has published a new discussion paper titled “Plastic Credits as an Innovative Financial Instrument,” exploring how Plastic Credits could facilitate the implementation of inclusive Extended Producer Responsibility (EPR) systems in emerging markets and developing economies (EMDEs). EPR is widely regarded as the global best practice for financing and managing the collection, sorting, and recycling of waste to combat plastic pollution.
Previously, Verra emphasised that Plastic Credits issued through its Plastic Programme could enhance the effectiveness of EPR schemes. This latest paper specifically examines the potential impact on EMDEs, which often face severe plastic pollution but lack the resources to develop waste management infrastructure and implement EPR systems.
The discussion paper outlines several key ways in which Plastic Credits can support EPR in EMDEs. The first important takeaway is mobilising additional financing to address infrastructure deficits in plastic waste management, along with accelerating waste collection and treatment efforts. The paper also talks of providing essential data, infrastructure, and measurement frameworks for EPR schemes and ensuring a just transition and equitable inclusion of waste pickers.
This paper aims to contribute to the broader dialogue on innovative financial instruments for addressing the global plastic crisis. It serves as a precursor to a forthcoming case study report that will explore the specific role of Plastic Credits in supporting inclusive EPR in Ghana, with broader implications for other EMDEs. Verra plans to release the full report ahead of the fifth session of the Intergovernmental Negotiating Committee for the Global Plastics Treaty (INC-5) later this year in Korea.