Shaping the Future: South East Asia's Dominance in the Global Plastic Credit Market

Introduction

The global plastic credit market is witnessing a significant shift in dynamics, with South East Asia emerging as a key player. This region, encompassing countries like India, Indonesia, and Thailand, is poised to lead the way in plastic credit projects and contribute to the sustainable management of plastic waste.

In this article, we will explore the role of South East Asia in the upcoming global plastic market, focusing on the insights provided by Verra's pipeline data.

Figure 1: Country-wise Plastic Projects in Verra's Pipeline (Source: Calculus IQ)

A glance at Figure 1 reveals the dominance of India in the plastic credit landscape. With a staggering 523K credits, accounting for 88.4% of the total, India takes the lead. Following closely behind are Kenya at 4.1% and Canada at 2.31%. Indonesia secures the fourth position with 1.66% of the plastic credits in the pipeline.

The substantial presence of Southeast Asian countries in Verra's pipeline indicates their pivotal role in shaping the global plastic credit market.

South East Asia's Contribution

The fact that 90% of the future supply of plastic credits will originate from Southeast Asia underscores the region's potential to lead the global plastic credit market.

Countries like India, in particular, have been at the forefront of plastic recycling and waste collection initiatives. Since the introduction of Extended Producer Responsibility (EPR) in 2016, India has made remarkable strides in infrastructure development for plastic recycling and collection. As a result, India has established its dominance in the plastic credit market, as depicted in Figure 2.

Figure 2: Indian Plastic Projects in Verra (Source: Calculus IQ)

Figure 2 sheds light on India's active involvement in both plastic recycling and waste collection projects. The country's concerted efforts in infrastructure development have led to a diverse range of initiatives aimed at mitigating plastic waste. These projects contribute to the overall plastic credit market and reinforce India's position as a major player in the global plastic credit landscape.

Conclusion

South East Asia, with its significant presence in Verra's plastic credit pipeline, is poised to play a leading role in the upcoming global plastic market. India's remarkable progress in plastic recycling and waste collection projects exemplifies the region's commitment to sustainable plastic waste management.

As Southeast Asian countries continue to spearhead initiatives and drive innovation in this field, they are set to shape the future of the global plastic credit market.

If you are interested in learning more about sustainability markets, we invite you to interact with Calculus IQ. This tool can help you explore different aspects of the market, including project types, retirement volumes, and more.