Tending to the roots: Fixing the supply chain side of plastic credits
India as a beachhead for market penetration and creating a battle-tested model for ecoCreds
Southeast Asian countries, especially India, have some of the highest recorded issues of plastic waste. While the required infrastructure and laws are slowly picking up, their capacity to manage the problem will still be an uphill battle. But if seen through an alternate viewpoint, this also presents itself as an opportunity. If some of the underlying issues with the supply side can be solved for, what we are looking at is a means to create the untapped potential for the supply of plastic credits as well as create a lasting impact on the surrounding systems and the environment itself.
To illustrate with a general overview of the challenges that face the subcontinent, we can take a look at the Plastic Overshoot Day Report 2023 published by EA (Environmental Action). India is among 12 other countries responsible for 52% of the world’s mismanaged plastic waste. The Plastic Overshoot Day is the point in time when the amount of plastic waste generated exceeds the world's ability to manage it. While the report identifies 28th July 2023 as the global Plastic Overshoot Day, each country has its POD measured in line with its consumption rate. The projected date for India was January 6, 2023.
When we look closer at what is happening at ground level, we can see that India generates over 25,000 tons of plastic waste daily, contributing to approximately 9.46 million tonnes annually. Approximately 60% of plastic waste is estimated to be recycled, while the rest is disposed of in landfills or becomes litter, highlighting the need for improved waste management infrastructure. Even this data can be contested, as authorities look to paint a more favorable picture than the ground reality, evidenced by news reports claiming otherwise.
A few of the major challenges or opportunities that come up are
1.Unreliable data This makes one clear: data from the centralized authorities is not the most reliable. As the challenge grows, it only seems natural that they would have to inflate numbers to make it seem like they can cover ground. And how are the numbers tracked today? Since the waste management process is multi-layered, falsifying data at any of these levels threatens the overall sanctity of information down the chain.
2.Large volumes of unaccounted-for waste Aside from the validity of this information, a massive chunk of what we know of plastic waste goes unaccounted for. Meaning there is no record of what happened with the plastic. Did it end up in landslides, incinerated, or lost in the ocean?
3.A large informal sector It is estimated that there are between 15 lakh and 40 lakh informal waste pickers in the country. They have been recovering and sorting reusable and recyclable solid waste from streets, bins, landfills, and material recovery facilities long before recycling became a buzzword. Most have accumulated local intelligence and skills to bolster a zero-waste cycle.
Plastic credits as a means to solve the plastic problem and unlock opportunities
Southeast Asian countries, especially India, Indonesia, Thailand, etc, have started to make headway in adopting plastic credits, creating micro-economies in their wake. They could formalize existing informal sectors, boost workers' incomes, encourage participation among aspiring entrepreneurs, promote community development, etc. The possibilities are many.
Suppose the Plastic Overshoot Day is to be any indication. In that case, a tremendous amount of work cannot be achieved simply with just the existing organizations in the space. The market is ripe to accommodate many more players with better resources and the ability to tackle the problem. Also important to note is that plastic credits alone cannot be the solution as it requires other measures to be equally involved in its successful implementation, like participation and commitment from manufacturers to reduce their plastic footprint from a production level, trustless mode.
On the bright side, once the measure is taken in one region, e.g., India, achieves particular success, these models can be replicated in other southeast Asian countries with slight modification as they share similar characteristics in their share of challenges, probably even to a lower scale.