A Qualitative Study on Risks and Opportunities of Plastic Credit Financing Instruments being Introduced into the Informal Waste Management Sector - Executive Summary

This document examines how plastic credit schemes may impact waste workers and recycling systems in Southeast Asia. Produced under the SEA circular initiative by UNEP and COBSEA, the study investigates how these market-based instruments used to compensate for plastic waste can bring both benefits and challenges to informal waste collectors. Based on literature review and interviews across six countries, the study identifies key risks such as income inequality, exclusion due to rigid standards, and overreliance on voluntary funding. At the same time, it outlines opportunities for improved livelihoods, gender inclusion, and better data for policy-making. The document recommends aligning plastic credit schemes with local realities, ensuring inclusive stakeholder participation, and embedding social safeguards. It calls for plastic credits to complement—not replace—systemic waste reduction strategies and highlights the need for international regulation.