MODULE 4: PLASTIC CREDITING PROCESS

PLASTIC CREDIT ISSUANCE PROCESS

Figure 6 illustrates the process flow for Plastic Credit issuance. Elaboration of specific processes are included in this section.

Figure 6: Plastic Credit Issuance Process

Plastic Credit Generation

PPRS registered Projects will be able to generate one (1) plastic credit for one (1) metric ton (MT) of post-consumer plastic waste with documented collection and End-of-Waste processing. The credits may only be generated under the scope for which the project was validated by its VVB.

Submission of Chain of Custody Documents

Upon completion of recovery and diversion activities, the Project Partner shall submit the complete and corresponding records supporting the collection, transportation, and End-of-Waste processing of the tonnage being claimed of the PPRS registered Project through the PPRS Registry[35].

The submitted records should demonstrate the full chain of custody and completion of the Project’s process in accordance with the validated process under the Project’s PPRS conformity assessment. All records should reflect the following information at the very least:

Control number or document identification number
Quantities being claimed (either in kilograms or metric tons) and identifier of the weighing equipment (to trace and ascertain the validity of its calibration)
Name of the entity issuing the certification/record
Name and signature of authorized signatory for the entity issuing the certificate/record
Type of inputs (feedstock type—i.e. flexibles, rigids, PET, LDPE, etc.)
Output description and destination
Participating stakeholders (i.e. received from and transferred to)
Date of record’s issuance
Dates of receipt of feedstock/collection, pre-processing, and End-of-Waste processing completion.

Aside from the above documented information, the proof of calibration for the weighing equipment shall be presented and uploaded into the PPRS Registry.

Impact Verification

PCX Solutions shall review the provided chain of custody records of the Project Partner for completeness and alignment with the validated Project documents (during the PPRS Conformity Assessment). Once the records are deemed complete, the same will be provided to a third-party VVB engaged by PCX Solutions to perform impact verification.

The third-party VVB assigned to perform the impact verification will review the quantities and information within the documented information to ascertain its veracity, traceability, and completion of the chain of custody. If the auditor finds that the records are incomplete or there are variances and inconsistencies noted, clarification and appropriate action is to be requested from the Project Partner through PCX Solutions. If the auditor deems the records accurate, consistent, and with a clear and traceable chain of custody, the auditor can sign off on these and provide their positive verification findings to PCX Solutions.

Serial Number (SN) Assignment

Upon receipt of a positive (impact) verification decision by the VVB, PCX Solutions shall generate the serial number for each eligible ton. The serial number will contain information relevant to the project source of the credit and information on the delivered impact.

To illustrate, each serial number will follow the below syntax (read from left to right, row by row):

________________________________________________________________________________________________

PPRS + Version No. -

PPRS registration date -

Aggregation type -

Processing type -

Date of Impact Verification -

Date of generation of SN

Project Country 3 letter code -

Project VVB -

Aggregator/collector -

Processing end date -

Sequence in batch (1 – n) -

Project Code -

Clean-up Type -

Aggregation end date -

Impact Verifier -

Total tonnage in batch (n) -

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This syntax is effective only for credits issued beyond version 8 of the PPRS. The previously issued serial numbers would remain as previously issued.

There may be changes to elements of the syntax of a serial number of Plastic Credits, and in this case, sufficient communication through the PPRS Registry will be ensured.

Plastic Credit Certificate (PCC) Issuance

Plastic Credit Certificates (PCC) are issued to transfer the ownership of the Plastic Credits and their corresponding serial numbers from the Project Partner to the Plastic Credit buyer(s). As PCX Solutions does not sell plastic credits, the Plastic Credit Buyer details (company/organization and quantity of credits purchased) shall be provided by the Project Partner or its authorized platform/intermediary to PCX Solutions. These details will be reflected on the PCCs and on the details of the retirement of the Plastic Credits in the PPRS Registry. The PCC will contain all assigned Plastic Credits (serial numbers) for ownership transfer to a particular Plastic Credit buyer.

The issuance of Plastic Credits and PCCs shall only be interpreted as written assurance that a certain tonnage has been recovered and processed on behalf of the Plastic Credit Buyer. The PCC shall not serve to warrant the competencies and capabilities of the Plastic Credit Buyer and its compliance with applicable laws and regulations. Further, the PCC shall not be interpreted as PCX Solutions' endorsement of any claims that the Plastic Credit Buyer may make subsequent to the issuance of and in relation to the impact documented in the PCC.

PPRS Registry Credit Retirement

Once a PCC has been issued to a Plastic Credit Buyer through the Project Partner or its authorized platform or intermediary, the relevant serial numbers and Plastic Credits will be retired on the PPRS Registry. To ensure transparency and to avoid double counting of Plastic Credits, the PPRS Registry is available for public view and as such, details of the retirement of credits will be publicly available.

Currently, there is no established and globally accepted mechanism for trading of Plastic Credits. As such, PPRS Plastic Credits are not tradeable, and transfer of ownership may only be done once (i.e. from Project Partner or its platform/intermediary to the Plastic Credit Buyer).

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[35] While the PPRS registry is in the final stages of development for version 8 and testing, this process is done manually and communicated through electronic mail. All chain of custody documents and results of verifications are available for public viewing on the PCX Markets Credit Registry.

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