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What Are Plastic Credits and How Do They Work?

Plastic credits are market-based tools designed to help address the global plastic waste crisis by funding the collection and responsible recycling of plastic waste. A plastic credit represents a verified amount—usually one kilogram—of plastic that has been recovered from the environment and properly processed. This system allows companies, organizations, or even individuals to take responsibility for their plastic footprint by supporting waste recovery efforts in areas most affected by pollution.

How Do Plastic Credits Work?

The concept is similar to carbon credits. Just as carbon credits offset greenhouse gas emissions, plastic credits are used to offset plastic usage. Here’s how the system works:

  1. Plastic Waste Collection: Local waste collectors or community recycling centers gather plastic waste—especially low value or hard-to-recycle plastics—that would otherwise end up in landfills, rivers, or oceans.
  2. Processing and Verification: The collected plastic is sorted, cleaned, and sent to appropriate recycling or waste-to-energy facilities. A third-party verification body ensures that the plastic was genuinely collected and processed according to environmental standards.
  3. Issuing Credits: For every verified kilogram of plastic collected and processed, one plastic credit is issued. These credits are traceable and auditable.
  4. Credit Purchase: Companies can purchase these credits to balance out the amount of plastic they use in their packaging or operations. By doing so, they financially support waste recovery programs and demonstrate their commitment to sustainability.
  5. Impact Reporting: Buyers of plastic credits often receive impact reports showing how their credits contributed to waste recovery, community benefits, and environmental protection.

Why Are Plastic Credits Important?

Plastic credits help bridge the gap between sustainability goals and real-world action. They:

  • Encourage investment in waste management infrastructure.
  • Support local waste workers and recycling entrepreneurs.
  • Divert plastic from landfills and the environment.
  • Allow companies to take measurable responsibility for their plastic use.

However, plastic credits are not a replacement for reducing plastic usage at the source. They are most effective when used alongside strong internal waste reduction policies and sustainable packaging strategies.

Reclaimify and Plastic Credits

Organizations like Reclaimify play a critical role in the plastic credit ecosystem by ensuring transparency, traceability, and community impact. Through verified projects in places like Lombok, Reclaimify ensures that every credit purchased contributes directly to cleaner environments and better livelihoods for local waste workers.

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