Let's face it, these days, businesses can't sweep supply chain traceability under the rug anymore. In many key markets, supply chain traceability isn't optional—it's a legal requirement. Regulators, particularly in countries like in the EU and increasingly elsewhere, are demanding strict transparency.  Being able to trace a product right back to its origin has become a non-negotiable condition for doing business within these jurisdictions. That's where ISCC comes in. It provides a standardized framework, recognized by regulatory bodies, for companies to demonstrate they're meeting these mandatory traceability requirements. This is absolutely crucial for maintaining market access. What is Traceability? So, what exactly is traceability? Simply put, it's about being able to track and verify the whole journey of materials and products—the entire supply chain, from beginning to end. This kind of transparency makes sure every step of the production process is checked out and that sustainable practices are actually being used. With ISCC-certified products, this traceability goes even deeper. Every single operator in the supply chain is certified, so you've got complete accountability from start to finish. How ISCC Ensures Traceability ISCC uses different methods to ensure materials meet sustainability standards and are traced correctly throughout the supply chain. These methods vary, but each has its own advantages that support business needs and consumer confidence. Mass Balance The mass balance approach tracks the quantity and characteristics of renewable or biobased materials throughout the value chain. By documenting and balancing inputs and outputs, companies can back up their sustainability claims with proof. This is ideal for companies starting their sustainability journey and those looking for a flexible yet robust system. Controlled Blending In controlled blending, companies account for the renewable content in their final products, especially under ISCC PLUS. This way the sustainability of the materials can be tracked and verified, so companies can meet high standards while being transparent. Perfect for industries transitioning to sustainability and want to keep their environmental promises. Physical Segregation For companies who want the highest level of transparency, physical segregation is the most strict approach. This method ensures that only certified, sustainable materials are used in production, and every step of the process—from storage to transportation—is separate to maintain the integrity of the certified product. Perfect for eco-conscious consumers who want credible sustainability claims. The Value of Traceability along Supply Chains Securing ISCC certification is a strategic imperative for businesses navigating evolving regulatory landscapes. It ensures compliance with increasingly stringent sustainability mandates, particularly in sectors subject to regulations on biofuel production, renewable energy targets, and sustainable sourcing. By achieving ISCC certification, companies proactively mitigate risks associated with non-compliance and demonstrate adherence to industry best practices recognized by regulatory bodies. This not only safeguards market access but also positions businesses to capitalize on emerging opportunities within regulated sustainable markets. For more information about the ISCC, please visit our website or contact us today!

As a result of the increasing problem of plastic pollution in the world, the UN Environment Programme (UNEP) Executive Director Inger Andersen emphasized the need for a Global Plastics Treaty by announcing the start of the Paris accord-like process with legal instruments to deal with plastic pollution in March 2022 at the resumed fifth UN Environment Assembly (UNEA-5.2). This was approved in 175 countries and it seeks to focus on the entire lifecycle of plastics, from its design to production and disposal. What is the Global Plastic Treaty? The Global Plastic Treaty is a proposal for an international agreement that aims to plan in detail the ways of combating plastic pollution including its manufacture and utilization which ultimately would result in a decrease of global plastic pollution. This project is being set within UNEP and has been actively supported by various coalition of governments, industries and groups working for the environment. Why is the Treaty Necessary? All the economic losses due to pollution caused by plastics are equally huge, the loss of billions of dollars each year owing to its effects on fisheries, tourism and the well being of people. In addition to this, the sickening image keeps the use and burning of plastics contributes and accentuates the emission of greenhouse gases. Taking into attention the size of these challenges, global production of plastics is likely to double by 2040 , if the current trends remain unabated. These multifarious issues are targeted by the three pillars of the Global Plastic Treaty through an all-inclusive legal approach, which are: Principle 1: Understanding Plastics as Carbon and Chemicals; Principle 2: Addressing the Harmful Health Effects from Chemicals in Plastics; Principle 3: Recognizing that Toxic Chemicals Make Plastics Incompatible with a Circular Economy. Key Aspects of the Global Plastics Treaty Lifecycle Approach : The Treaty seeks to reduce plastic pollution and plastic usage through measures such as eliminating the need for single use plastic, increasing the safe and viable options available, ensuring responsible production and consumption, modifying recycling approaches, and managing wastage of plastic by targeting pollution at every stage of plastic’s life cycle. Binding Targets : The Treaty suggests legally enforceable initiatives to reduce plastic usage which include specific targets for recycling as well as the percentage of plastic in consumer goods which has been recycled. Extended Producer Responsibility (EPR ): The Treaty supports abandoning End of Product Life policies owned by the producers as it introduces a new concept of Environmental Pollution Responsibility (EPR) that pushes the manufacturers, wholesalers, and retailers to be responsible in controlling wastes created after the sale of their products. Just Transition : The Treaty advocates a “Just Transition” for informal waste pickers with a focus on ending poverty through safeguarding the resource sector along with livelihoods for that sector in more economically developed industries. Global Cooperation : The Treaty underscores the need for developed countries to lend a helping hand in the reduction of plastic usage in developing countries by providing financial and technological support to achieve set goals. Environmental and Health Protection : Finally, the Treaty highlights the importance of being able to take legal action against irregularities in plastic supply chains as that will help in reducing the negative impact on health as well as the production of micro and nanoplastics that leak into water bodies. It also mentions the issue of impact of plastics in the climate change context and seeks to move towards a paradigm shift that would decrease the greenhouse gas emissions associated with the life cycle of plastics. Progress and Challenges This treaty has advanced towards its objectives since its inception. In 2013 negotiations started in a more organized fashion when an Intergovernmental Negotiating Committee (INC) was formed for the purpose of drafting the Treaty in 2024. During these negotiations, various stakeholders including industry, academia and civil society representatives have been engaged in discussions to ensure balance and inclusiveness. However, challenges remain. Enhanced expectations of the developed countries, related to funding, technology transfer and historical pollution responsibility have made negotiations intractable. Moreover, plastic-dependent industries have raised alarm bells on the negative economic ramifications that enacting strict regulations would have. Plastic Pollution Reduction Standard (PPRS) One of the key components which supports the Global Plastic Treaty is the Plastic Pollution Reduction Standard (PPRS) of PCX Solutions. The PPRS offers a distinct and attainable framework which provides guidelines for plastic offsetting programs. It defines controllable conditions which must be emphasized including stringent environmental and social impact policies, and the availability of a mechanism to monitor performance and provide accountability with full disclosure of all information. Furthermore, the PPRS-registered Projects can generate one plastic credit for every metric ton (MT) of post-consumer plastic waste that has documented collection and End-of-Waste processing. Credits can only be generated within the validated scope of the project as approved by its VVB. The Global Plastic Treaty is an important milestone in protecting the future. It seeks to combat plastic pollution in a unified manner while fostering cooperation among nations to safeguard the earth and protect its environment for future peoples. The success of this Treaty relies on the willingness of all affected countries to work together. 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In recent years, the global community has scaled up efforts to counter plastic pollution that is everywhere and threatens ecosystems and human health. Among various strategies, one innovative approach gaining traction is the concept of plastic credits. Examples of such initiatives include the Plastic Pollution Reduction Standard (PPRS) from PCX Solutions, which enables companies to offset their plastic footprints through plastic credits. This system not only incentivizes responsible ways of waste management; it encourages accountability and promotes transparency in tackling plastic pollution. But what exactly are plastic credits, and how do they work under the PPRS? What are Plastic Credits? Plastic credits work similarly to carbon credits in that they are a quantifiable unit of plastic waste collected, recycled, or otherwise removed from the environment. These can then be bought by companies or organizations to offset their plastic footprint, thereby contributing to reducing plastic waste. The PPRS The Plastic Pollution Reduction Standard (PPRS ) is a globally recognized framework developed by PCX Solutions to address the growing challenge of plastic waste. It sets rigorous guidelines for the recovery, processing, and accountability of post-consumer plastic waste, enabling the issuance of verified plastic credits. The PPRS ensures transparency, traceability, and measurable environmental impact through its structured processes and third-party validations. The Mechanism Behind Plastic Credits within PPRS It typically involves four major players in the process: Aggregator : A person or organization, either governmental or non-governmental, that collects post-consumer plastic waste from different sources and consolidates it for delivery to processors. Processor : Any organization that receives, treats, or transforms post-consumer plastic waste into other useful forms through material or energy recovery (End-of-Waste). Verification and Validation Body (VVB) : A third-party organization, independent from PCX Solutions and the Project Partner, which has been accredited by PCX Solutions to conduct validation and verification of Projects for the purpose of assessing conformance with the PPRS. PCX Solutions also engages a VVB to verify the credits pre-issuance. The VVB engaged to conduct impact verification is referred to as the "Impact Verification Auditor." Plastic Credit Buyer : A person, organization, or company involved in plastic pollution reduction, avoidance, and/ or liability (i.e. by purchasing plastic credits). The Process of Plastic Credit Issuance The PPRS plastic credit system is based on a highly detailed and transparent issuance process: 1. Collection and Processing of Plastic Waste The journey starts at the collection and processing of plastic waste. The project partners at this stage must take due care that the waste being handled conforms to the requirements of the PPRS. 2. Submission of Chain of Custody Documents The project partner, after collection, needs to send in detailed chain of custody documents to the PPRS Registry. These chain of custody documents shall contain: Control numbers or document IDs Quantities being claimed and weighing equipment identifiers Name of the entity issuing the certification/document Names and signatures of the parties involved Type of inputs (feedstock type—i.e. flexibles, rigids, PET, LDPE, etc.) Output descriptions and destination The stakeholders involved (i.e. received from and transferred to) Date of issuance of the record Dates of receipt of feedstock/collection and pre-processing and completion of End-of-Waste processing 3. Impact Verification PCX Solutions verifies the records submitted to ensure completeness and that they reflect what has been validated in the project documents. Once the records are complete, they are forwarded to a third-party VVB for impact verification. The VVB verifies that the records are accurate, consistent, and traceable. Any discrepancies found have to be subject to corrective action by the project partner. 4. Assignment of Serial Number (SN) Positive verification by the VVB, PCX Solutions assigns a unique serial number to each eligible ton of plastic recovered, which contains critical information about the project's impact and source. 5. Plastic Credit Certificate Issuance Plastic Credit Certificates (PCC) facilitate the transfer of ownership of Plastic Credits and their corresponding serial numbers from the Project Partner to the Plastic Credit Buyer. Since PCX Solutions does not engage in selling plastic credits, the Project Partner or its designated platform/intermediary is responsible for providing PCX Solutions with the Plastic Credit Buyer details (organization and quantity of credits purchased). These details will be reflected on the PCCs and in the PPRS Registry upon the retirement of the Plastic Credits. The PCC will include all serial numbers of the assigned Plastic Credits for transfer to a specific Plastic Credit Buyer. 6. PCX Solutions Supply Registry Credit Retirement Once a PCC is issued, the respective serial numbers and plastic credits are retired in the PPRS Registry, hence a public registry providing perfect transparency and avoiding any cases of double counting. As of now, there is no globally accepted method for Plastic Credits trading. Hence, PPRS Plastic Credits are non-tradeable, with ownership transfer possible only once (i.e., from the Project Partner or its platform/intermediary to the Plastic Credit Buyer). Plastic Credit Generation PPRS-registered Projects can generate one (1) plastic credit for one metric ton (MT) of post-consumer plastic waste with documented collection and End-of-Waste processing. These credits can only be generated within the scope for which the project was validated by its Verification and Validation Body (VVB). Benefits and Challenges The value of plastic credits will lie in their provision of an added financial incentive in attempts at waste management, especially increased recycling rates, and for developing more advanced technologies in waste processing. Plastic credits could also be one avenue through which companies achieve their sustainability goals and improvement in their corporate social responsibility profiles. Yet, the system is not without its challenges. How to ensure integrity and transparency about plastic credits becomes paramount. There needs to be strong verification processes in place so that fraud cannot occur, and actual reductions in plastic waste, which are claimed to be disposed of, materialize and get measured out. The long-term viability of this emerging market also remains to be seen. The Future of Plastic Credits Even given this difficult context, plastic credits also hold great promise: it is a market-oriented model that fuels innovation and accountability regarding the environment. As many firms are committed to reduced plastic footprints, it will increase demand for plastic credits, thus driving even greater improvements in waste management. To learn more about the PPRS, please visit our website or give us a call !