For India, PCCs provide a double benefit offering an economic model that supports the infrastructure for managing waste while also increasing companies’ accountability for plastic use

Byline: Nimit Aggarwal, Founder and Managing Director, EcoEx

India produces around 10 million tonne of plastic waste every year due to the growing population and rapid urbanisation. According to a joint study by the Commonwealth Scientific and Industrial Research Organisation (CSIRO), The Energy and Resources Institute (TERI) and CSIR-NEERI, only 8 per cent of this plastic waste is recycled, leaving behind a substantial chunk that contaminates the environment.

The growing problem of plastic waste calls for innovative and scalable solutions. Among the newer mechanisms, plastic credit certificates (PCCs) are the most important solution to the problem, integrating economic incentives and the environment’s objectives.

Understanding Plastic Credit Certificates (PCCs)
Plastic credit certificates use market forces to reward recycling, collection, and the proper removal of plastic waste. Like carbon credits, PCCs are awarded when a certain amount of plastic waste is handled carefully. Businesses can buy PCCs to offset their use of plastic and contribute to reducing waste, even by not directly managing the waste streams.

For India, a country struggling with the effects of plastic pollution in both rural and urban areas, PCCs provide a double benefit. They offer an economic model that supports the infrastructure for managing waste while also increasing companies’ accountability for plastic use.

India’s Policy Ecosystem on Plastic Waste Management
India’s regulatory framework for plastic waste management is getting more stringent. The Plastic Waste Management (PWM) Rules, 2016 and subsequent amendments reinforce the concept of Extended Producer Responsibility (EPR). Following EPR, importers, producers, and brands are held accountable for managing post-consumer plastic waste. However, implementing EPR is difficult due to insufficient infrastructure, waste segregation and financial restrictions.

PCCs complement the EPR framework by providing market-driven mechanisms to bridge the gaps. Companies that cannot attain their targets for plastic recovery can make investments in PCCs, ensuring third-party waste management organisations are meeting their environmental obligations. It helps create a more collaborative environment between recyclers, producers, and local government officials.

Economic And Environmental Benefits Of PCCs
Adopting PCCs in India can make way for a positive change in the waste management sector. Here are some of the key benefits:

Promoting recycling and the circular economy:
By monetising waste management processes, PCCs can make recycling economically viable. Through PCCs, this channel can fund local recyclers to scale activities and invest in new technologies to improve recycling rates.

Empowering Informal Waste Workers:
The waste management industry in India relies heavily on the informal workforce, estimated to be 1.5 million to 4 million people. PCCs can formalise the sector by directing financial resources to structured collection and segregation programs. It will not only enhance workers’ lives but also boost the effectiveness of waste recycling.

Encouraging Corporate Responsibility:
The PCC mechanism is well-informed with the corporate goals committed to sustainability. For example, multinational corporations operating in India have committed to eliminating plastics in their supply chains by 2025. PCCs allow these companies to keep their promises while contributing to the transformation process.

The Way Forward: A Multi-Stakeholder Approach
To realise the full capabilities of PCCs, a cooperative approach involving government agencies, private companies, and civil society organisations is crucial. Here are some key suggestions:

Policy Alignment: The government must integrate PCCs within the current EPR system to ensure seamless implementation. Offering tax incentives or subsidies to businesses that purchase PCCs may increase the adoption.

Capacity Building: Education programs for recyclers and workers in the waste industry can help improve their skills to comply with PCC standards. In addition, awareness campaigns for corporations and the general public can help build momentum towards PCC adoption.

Digital Platforms for Transparency : Using digital technologies like blockchain will increase transparency in the issuance and trading of PCCs. A central digital registry could keep track of the life cycle of PCCs and guarantee their accountability.

Plastic Credit Certificates offer an opportunity for India to tackle the issue of plastic waste while fostering sustainability. Through economic incentives and environmental sustainability, PCCs can transform the waste management system and establish India as a world-leading country in sustainable development. However, to realise this dream will require a concerted effort to overcome the implementation challenges and create an effective network of partners. If the right strategies are implemented, PCCs could pave the way to a cleaner and more sustainable India and set the standard for other countries facing similar issues.