After more than a week of negotiations from November 25 to December 5 in Busan, South Korea, the fifth session of the Intergovernmental Negotiating Committee aimed at finalizing the UN Global Plastic Treaty on pollution ran out of time. It was decided to hold an additional round of discussions in 2025 to give governments more time to agree on a final text.
While this delay has frustrated many, it is far better than signing a weak and toothless Treaty and allows the time needed to thoughtfully develop consensus building. Insights and agreements from INC-5 will be used to revise the draft treaty, addressing unresolved issues such as plastic production limits, enforcement measures, and financing mechanisms.
Financing mechanisms are a significant inclusion in the Plastic Treaty. This is where plastic credits can provide a viable solution. Plastic Credits are results-based financing that provide transparency and accountability across the value chain. They meet strict standards, follow proven methodologies, and are certified by independent auditors and listed on a public registry. By offering a market-based solution, plastic credits provide direct funding for collection and recycling activities through a verified plastic standard. This significantly reduces the investment risk for companies that purchase these credits.
Measured by unit (plastic waste) removed from the environment or recycled above the baseline rate, one metric ton collected or recycled equals one credit. As such, plastic credits directly fund activities that remove and repurpose plastic waste, creating a circular economy and driving innovation to underserved areas to increase collection and recycling capacity.
Most developing countries lack adequate solid waste management systems, allowing immense plastic leakage into the environment and marine ecosystems. Including plastic credits as part of the global plastic treaty mobilizes resources to where they are most needed and supports innovative technological solutions. Companies have a viable financial mechanism to reduce their plastic footprint and are ensured that their money goes to activities directly addressing plastic pollution.
