Why a shared vocabulary matters
Plastic credit markets use terms borrowed from carbon markets, waste management and corporate reporting. The same word can mean different things to a project developer, a registry and a buyer. This glossary sets out the terms that come up most often on Plastic Units, with a link to the article where each is covered in depth.
Core terms
Plastic credit
A certified unit representing one kilogram of plastic waste collected or diverted from the environment. This is the most widely used convention, including under Verra's Plastic Waste Reduction Standard (PWRS). See What are plastic credits?
Additionality
The requirement that a project would not have happened without the revenue from credits. A project must show that its recovery goes beyond what would have occurred anyway. In ocean-bound projects, the counterfactual is typically plastic leaking into the ocean. See why baselines decide whether a credit is real.
Baseline
The reference against which a project's results are measured. Each project must run a counterfactual waste fate analysis, establishing what would happen to the plastic waste in its catchment area if the project did not exist. The baseline is the foundation of the additionality argument.
Mismanaged plastic waste
Plastic that is not collected and properly managed. It may be landfilled, openly burned or leak into the environment. Country-level data, such as the Minderoo Foundation's Plastic Waste Makers Index, helps projects weight their geographic hotspots. See the mismanaged waste baseline.
Ocean-bound plastic
Plastic collected close to the coast. Prevented Ocean Plastic, aligned with the Ocean Bound Plastic standard, certifies plastic collected within 50 kilometres of coastlines or waterways in countries with inadequate waste management. Other schemes assess eligibility differently, so check the definition behind any label you plan to use. See ocean-bound plastic explained.
PWRS and VVB
Verra's Plastic Waste Reduction Standard requires third-party verification, registry tracking and defined credit types. Verification is carried out by an accredited Validation and Verification Body (VVB), and verified credits are issued onto a publicly searchable registry. See Verra's PWRS.
VMR0006 and VM0046
Verra methodologies for different pathways. VMR0006 covers conventional collection and mechanical recycling projects. VM0046 covers chemical recycling. See VMR0006 explained.
MRV
Monitoring, reporting and verification. MRV separates data collection from reporting and independent review, which reduces the risk of self-serving claims by project developers. See plastic credit MRV explained.
Registry and retirement
A registry records each verified credit with a serial number, which prevents double-counting. Retirement is the one-way action that removes a credit from circulation and assigns it to a named beneficiary. A retired credit cannot be resold, transferred or double-claimed. See the registry guide.
Chemical recycling
Pathways such as pyrolysis, gasification and solvolysis, which process mixed or contaminated plastics that cannot be mechanically recycled. Credits in this category are an emerging area with their own methodology questions. See the chemical recycling buyer guide.
Plastic offset
A claim that a footprint has been balanced by purchasing credits. Offset claims must disclose the nature and scope of the scheme, the percentage of total impact covered and the standard against which credits are verified. Credits come after measurement and reduction, not instead of them. See plastic offset explained.
EPR
Extended Producer Responsibility. These rules impose financial obligations tied to the tonnage of plastic placed on the market, as in France (AGEC Law), Germany (Verpackungsgesetz) and India (Plastic Waste Management Rules). Some governments are exploring credits as a supplementary compliance route. See EPR and plastic credits.
Co-benefits
Social outcomes that come with a credit, such as income for informal waste workers, child labour prevention and community health improvements. They are increasingly priced into premium tiers and disclosed in impact reports. See co-benefits and SDG alignment.
Using these terms in a claim
Use the terms precisely. A plastic credit describes a unit of recovery. A plastic offset is the claim made with it. A plastic neutral claim also requires a measured footprint, with reduction coming before offsetting. Under EU rules that apply from 27 September 2026, environmental claims must be substantiated. Read the EU green claims article before writing any consumer-facing claim.
About the author
Plastic Units editorial team
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The Plastic Units editorial team writes and maintains the Knowledge Bank and news on the plastic credits market, recycling economics and plastic policy.