{"id":316,"date":"2021-10-19T10:37:28","date_gmt":"2021-10-19T10:37:28","guid":{"rendered":"https:\/\/wordpress.circularactionhub.org\/?page_id=316"},"modified":"2024-10-02T10:36:10","modified_gmt":"2024-10-02T10:36:10","slug":"circular-credits-mechanism","status":"publish","type":"page","link":"https:\/\/www.circularactionhub.org\/certification\/circular-credits-mechanism\/","title":{"rendered":"Circular Credits Mechanism"},"content":{"rendered":"\t\t
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The\u00a0Circular Credits Mechanism<\/a>\u2122 (CCM) from BVRio<\/a> is a system of performance-based payments for environmental services of circularity,\u00a0<\/span>striving for inclusiveness and wide social participation. It is a market tool for buyers and sellers of the environmental services related to the collection (recovery), sorting and appropriate destination of recyclable waste materials that today pollute our environment.<\/p>

Through the use of credits, interested parties (the buyers \u2013 e.g., companies) can compensate for their waste footprint, by effectively subcontracting the services provided by sellers (e.g., projects, waste pickers associations, etc.) providing the environmental service of waste recovery and appropriate destination.<\/p>

In the absence of polluter-pay regulations in some countries (e.g. Extended Producer Responsibility \u2013 \u201cEPR\u201d schemes), the tool can positively contribute to social and environmental impacts (e.g., low income groups in developing countries). For countries with existing EPR schemes, the Credits may be recognised as one of the ways of complying with these regulations.<\/p>

To issue Circular Credits, projects must conform to the Circular Credits Mechanism\u00a0Standard<\/a>, and its\u00a0Principles and Criteria<\/a>. \"\"<\/p>

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AN INCLUSIVE APPROACH TO THE PROJECT CYCLE<\/h2>

Traditional project cycles for environmental markets (e.g., carbon markets) require the validation, registration, independent verification, and issuance of credits before developers can receive any financial return. Transaction costs involved can be significant, and beyond the means of project developers.<\/p>

The CCM was designed by BVRio, based on its experience with the Reverse Logistics Credit System in Brazil. The objective of the CCM is to be inclusive and accessible to all, especially SMEs and community-based operations.<\/p>

For this reason, the CCM adopts an\u00a0inverted\u00a0<\/span>project cycle\u00a0where developers can\u00a0post their offers\u00a0based on self-declarations that are verified only after projects secure financial support. There are\u00a0no costs associated with project registration and credit issuance<\/span>, and all other transaction costs are covered by the buyers of environmental services.<\/p>

Circular Credits are transacted exclusively through the Circular Action Hub\u2019s marketplace, which also acts as its\u00a0Registry<\/a>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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The Project Cycle<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Projects must follow the process described below to create and sell credits under\u00a0the Circular Credits Mechanism:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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  1. Project registration form (PRF) completion <\/strong>describing the project activities, the situation prior to the project, the expected project benefits, and the monitoring plan.\u00a0Click here<\/a>\u00a0to start the process.<\/p><\/li><\/ol>

    1. Analysis and registration of the PRF<\/strong>,\u00a0done by\u00a0BVRio\u2019s technical team, to ensure data completeness. The project proponent makes a self-declaration about the project\u2019s expected environmental impact and its compliance with the CCS\u2019s Principles and Criteria. After this:<\/p>