How effective are plastic credits in tackling marine pollution?

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Plastic Credits Show Promise but Face Limitations in Addressing Marine Pollution

The Philippines' Extended Producer Responsibility (EPR) law, which allows companies to use plastic credits to offset their packaging waste, has demonstrated a capacity to remove significant amounts of plastic from the environment. In its first year, the law reportedly removed 486,000 tonnes of plastic waste, exceeding the target. These credits fund waste collection and incentivize the recovery of difficult-to-recycle plastics, with prices varying based on the type of plastic and its end-of-life process, such as recycling or co-processing for energy. However, the effectiveness of this system in directly combating marine pollution is nuanced, as the process of burning plastic for energy, while removing it from immediate terrestrial or aquatic environments, is considered a linear rather than a circular solution, and upstream reduction efforts like packaging redesign remain challenging due to cost implications.
Plastic Credits Fund Waste Recovery and Incentivise Collection

The EPR law enables companies to meet their waste management obligations by purchasing plastic credits. These credits represent a metric tonne of plastic that has been collected and either recycled, upcycled, or co-processed for energy. For instance, PCX Solutions offers credits ranging from approximately US$100 for mixed plastics to over US$500 for ocean-bound PET plastic. This financial mechanism is designed to channel funds into the often underfunded waste collection sector and to encourage the retrieval of plastics that are not commercially viable for traditional recycling.
Addressing Marine Pollution Through Credit Mechanisms

While the EPR law aims for "plastic neutrality," the direct impact of plastic credits on preventing plastic from entering marine environments is not fully detailed. The system does allow for the purchase of certificates for the removal of "ocean-bound PET plastic," suggesting a focus on plastics that are at high risk of reaching the sea. Furthermore, individuals like Marita Blanco have found economic opportunities through collecting and selling plastic waste, which then enters the stream managed by organizations utilizing these credit systems, contributing to overall waste removal efforts.
Challenges in Upstream Reduction and Circularity

Despite the removal of substantial plastic waste, challenges persist in achieving true circularity and reducing the initial flow of plastic. Companies are obligated to cover a percentage of their plastic packaging footprint, increasing from 20% initially to 80% by 2028, but redesigning packaging to use less plastic can incur higher costs, which procurement departments may be reluctant to absorb. Moreover, the co-processing of plastic for energy, while removing waste, is considered a linear activity because it destroys the plastic material rather than reintegrating it into a continuous cycle.
Long-Term Impact Hinges on Behavioural Change

The Philippines' EPR law is recognised as a robust policy framework. However, significant and immediate impacts on marine pollution are not anticipated. The success of the law is contingent upon substantial behavioural changes across all stakeholders, including consumers and producers, to effectively reduce plastic pollution. While visible improvements in waste-affected areas have been reported, the transition to a more circular economy and a substantial reduction in the overall plastic footprint will require sustained effort and innovation.

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