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Government delegates negotiating a plastics treaty should resist the urge to incorporate quick fixes like plastic credits in the text, and instead should set ambitious, non-negotiable targets for plastic reduction and reuse.
The escalating global plastic pollution crisis demands urgent, decisive action, with plastic threatening ecosystems and human health.
Governments are convening at the second part of the fifth session of the Intergovernmental Negotiating Committee (INC 5.2) in Geneva, tasked with forging a historic, legally binding instrument to tackle plastic pollution across its entire life cycle—a mandate enshrined in the United Nations Environment Assembly (UNEA) Resolution 5/14 three years ago.
Plastic credit schemes are increasingly discussed on the sidelines of the ongoing treaty negotiations—often presented under the umbrella of blended and innovative financing. Proponents argue that these schemes can potentially close the gap in countries with inadequate waste management infrastructure. Plastic credits have not explicitly made it in the most recent Chair’s Text at the ongoing INC 5.2 meeting, but they were mentioned in one of the expert group meetings in August 2024, as an innovative financing approach, with the potential to “incentivize companies to shift towards sustainable practices.”
Scientists have estimated that it would cost $18.3-158.4 trillion to support global actions toward zero waste pollution by 2040. According to the World Bank, income generated from plastic credits can potentially help close the funding gap for plastic waste management by 2040, amounting to about $240 billion annually. These benefits may sound enticing particularly with the urgency of securing funding to address plastic pollution, but in fact represent a dangerous distraction, risking greenwashing and diverting critical finance and political action.
The future of our planet depends on preventing plastic pollution at its source, not pursuing plastic credits to offset harm after it is done.
Plastic credits appear to be a win-win solution on paper—companies provide funding for waste collection initiatives to “offset” their plastic footprint. However, this approach mirrors the shortcomings of carbon offsetting, which has faced numerous problems, including “phantom credits,” lack of new emission reductions, and double counting. While a universal definition for plastic credits is still under development, organizations like PCX Solutions, Verra, BVRio, and the World Bank generally agree on this scheme as a results-based financing mechanism, which funds projects designed to tackle plastic pollution, primarily through collection and recycling efforts. Plastic credits have initially been introduced as voluntary schemes, in which businesses may purchase credits to “offset” their plastic footprint, or the amount of plastic they have produced, often done to enhance brand image, meet sustainability commitments, and fulfill corporate social responsibility (CSR) initiatives.
There are several countries that have incorporated plastic credits into their extended producer responsibility (EPR) policies, as a way for companies to achieve regulatory compliance. The Philippines, for example, mandates large corporations to gradually offset their plastic footprint, aiming for an 80% collection or recovery by 2028. This system permits plastic offsetting as an alternative to EPR fees, which are conceptually intended to fully cover plastic waste management costs—a burden often borne by municipalities. However, it remains uncertain whether existing EPR policies with plastic offsets fully cover the cost of managing plastic waste.
Experts have argued that plastic credit mechanisms lack a standardized accounting system, making it challenging to effectively measure credits from plastic offsetting projects and plastic footprints. They also found that plastic credits face difficulties in meeting critical offset criteria such as additionality, permanence, and the “no-harm” principle. It is difficult to prove that the plastic collected or recycled through a credit scheme would not have been managed anyway. A 2023 investigation into Verra’s databases, for instance, found that more than 80% of listed projects have been operational for more than a year before being listed on the registry platform, contradicting claims that these activities are unviable without funding from plastic credits.
There are also concerns about permanence, largely due to the challenges of achieving genuinely closed-loop recycling for plastic waste. The meager 9% global recycling rate for plastic highlights the challenges posed by its complex compositions and chemical additives, as well as the economic impracticality of such interventions. It is not surprising that many of these plastic credit projects involve burning collected plastic waste in cement kilns.
Experts have warned that current credit prices are too volatile to provide sustainable funding for waste management. SourceMaterial uncovered a significant price disparity within a registry platform: Plastic credits linked to co-processing treatment in cement kilns are available for as little as $115 per credit, whereas credits from community-based collection projects can cost up to $630. Using the Philippines EPR case, the price disparity suggests that companies may opt for the cheapest credits derived from burning for regulatory compliance, rather than pursuing plastic reduction measures.
Plastic credits are fundamentally flawed and risk becoming a costly diversion from meaningful action. Government delegates attending the INC 5.2 meeting should resist the urge to incorporate quick fixes like plastic credits in the treaty text, and instead should set ambitious, non-negotiable targets for plastic reduction and reuse, ensuring accountability across the entire plastic life cycle, as mandated under UNEA Resolution 5/14.
A strong, dedicated financial mechanism is essential for the treaty. Developed member states should fund a substantial portion of the contributions, in line with the principles of common but differentiated responsibilities and polluter pays. This will ensure that the health and environmental costs are internalized, and funds are available for remediation to protect human health, biodiversity, and the environment. Likewise, the financial mechanism should also direct investments toward initiatives focusing on plastic production caps and waste prevention, as well as the development and scale-up of safe, non-toxic, and accessible reuse and refill systems, rather than limiting to downstream interventions like recycling and waste management. Furthermore, it should support and facilitate a just transition for workers along the plastics life cycle, including waste pickers and other informal workers and workers in cooperative settings, Indigenous Peoples, and frontline or directly affected communities.
The future of our planet depends on preventing plastic pollution at its source, not pursuing plastic credits to offset harm after it is done. Real solutions begin with reduction, not compensation.
As delegates gather in Geneva, Switzerland for what is expected to be the final round of negotiations for a United Nations treaty to address the plastics crisis, the stakes could not be higher.
The United Nations Plastics Treaty is billed as the world’s best chance to tackle plastic pollution, but unless it confronts the power of the fossil fuel industry, it risks becoming little more than a recycling plan with a new logo.
With over 99% of plastics being made from oil and gas, the reality is that plastic is the fossil fuel industry’s plan B. As the world is under pressure to transition away from fossil fuels, oil and petrochemical giants are doubling down on plastics to secure their profits and perpetuate a destructive business model for decades to come. Industry projections show plans to dramatically expand plastic production—locking in emissions just as climate scientists warn we must phase out fossil fuels. Already, plastics account for around 4% of global greenhouse gas emissions. Without intervention, that figure could double by 2050 as plastics rise to account for 20% of global oil and gas consumption.
This is why the U.N. Plastics Treaty negotiations are a critical moment in the broader fight to reduce pollution, put a cap on greenhouse gas emissions, and fight for climate justice. Cutting plastic production is not only vital to cleaning up oceans and coastal areas, but is also about dismantling a key pillar of the fossil fuel economy.
Yet, the same corporations that created this crisis have infiltrated the process meant to solve it. Hundreds of industry lobbyists have attended the treaty talks, working to strip away any mention of production limits. Over 200 industry lobbyists are in attendance at this year’s negotiations. Their preferred outcome is clear: a weak agreement focused solely on waste management, leaving the root cause untouched.
If the world truly wants to end plastic pollution, it must start by ending the unchecked production of plastic itself.
The human cost of bowing to the influence and demands of the fossil fuel and petrochemical industry is well known. From frontline communities across Asia, Africa, and Latin America to the infamous “Cancer alley” in the United States, plastics poison air, water, and soil, disproportionately harming low-income, Black, brown, and Indigenous communities. In the Global South, countries bear the additional burden of waste colonialism: imported waste they did not create. Just like the climate crisis, this is a story of systemic exploitation: profits for a few, toxic impacts for the many.
The fossil fuel and petrochemical industry’s false solutions to the crisis only deepen this injustice. Recycling rates remain negligible, and new schemes like “plastic credits” mimic the failures of carbon markets—financial smokescreens that do nothing to reduce production. These false solutions keep the burden off the culprits, shifting focus to only the very end of the plastics lifecycle rather than tackling every stage of it. Embracing these false solutions means entrenching the problem rather than solving it.
What’s needed is unequivocal: a legally binding cap on plastic production. Anything less leaves fossil fuel companies with an open runway to continue extracting, refining, and polluting. Such a cap would not only curb emissions and pollution, but would set a precedent for challenging corporate power in other arenas of the climate crisis.
The treaty negotiators face a clear choice and responsibility. They can side with the communities poisoned by plastics, the workers demanding a just transition, and the growing global movement to end pollution and secure climate justice. Or they can allow the fossil fuel industry to hijack yet another international agreement, leaving future generations to choke on its consequences.
If the world truly wants to end plastic pollution, it must start by ending the unchecked production of plastic itself. Delegates can engage in the path of a just transition and true system change that centers people and the planet, sending a strong message to the fossil fuel industry that its time is long gone and its hijacking of agreements and treaties is over. Anything less is not enough.
We’re headed to Geneva with our hearts and minds set on a treaty that caps and controls plastic production, addresses the toxic chemicals used to make plastics, ensures supply chain transparency, and delivers the financial mechanisms needed to stop plastic pollution.
Stakes—and nerves—are high heading into what is supposed to be the final scheduled round of Plastics Treaty negotiations. From August 5 to 14, United Nations member states will meet in Geneva, Switzerland. The question on everyone’s mind: Will they deliver the treaty the world urgently needs?
The global plastics crisis is accelerating, threatening public health, ecosystems, and economies worldwide. Plastic production is on track to triple by 2050, driving 20% of global oil demand within the next two decades. Nearly 99% of plastics are made from fossil fuels—the main driver of climate change. If left unchecked, plastics could burn through one-third of the Earth’s remaining carbon budget, derailing efforts to limit global warming.
Every week, new studies uncover toxic impacts on our bodies, water, and food systems—from microplastics found in human blood and breast milk, to links between plastic chemicals and cancer, hormone disruption, and fertility issues. This is a crisis of human health, not just “a waste management problem.”
We’re headed to Geneva with our hearts and minds set on a treaty that caps and controls plastic production, addresses the toxic chemicals used to make plastics, ensures supply chain transparency, and delivers the financial mechanisms needed to stop plastic pollution and its climate and health-ravaging impacts.