Plastic waste can open new business opportunities

Bangladesh’s new Extended Producer Responsibility (EPR) rules could turn plastic waste into a business opportunity, allowing companies that collect and recycle more than the mandatory targets to earn money by selling plastic credits in international markets, experts said yesterday.

They made the statements at a workshop titled “Plastic Credits: Bangladesh’s Waste and the World’s Currency”, jointly organised by the Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA) and STAC Foundation at the BPGMEA auditorium.

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However, speakers said high compliance costs, weak documentation, strict verification requirements and a lack of technical expertise could make it difficult for businesses to benefit from the emerging market.

Tazin Mahmud Ashik, sustainability specialist at STAC Foundation, said the EPR guideline would require producers, importers, brand owners, supermarkets and other obligated entities to take responsibility for collecting and recycling part of the plastic they put on the market.

In the first two years, obligated entities will have to collect 15 percent and recycle 7.5 percent of the plastic they produce or put on the market. The targets will later rise to 30 percent for collection and 15 percent for recycling, he added.

Around 800,000 to 825,000 tonnes of plastic waste are generated in Bangladesh each year, of which 63 percent remains uncollected, Tazin said.

However, he said the challenge could also create a business opportunity.

“If you strengthen your system and collect more than the mandatory target, the additional collection can potentially be converted into plastic credits,” Tazin added.

CERTIFICATION REQUIRES MORE THAN COLLECTING PLASTIC

Zeeshan Mohsen, a plastic credit certification expert, said companies could turn additional plastic recovery into a source of revenue by selling plastic credits.

However, generating credits involves more than simply collecting plastic waste. Projects need proper documentation and baseline studies, followed by validation and verification by accredited bodies before credits can be issued.

“Documentation is a major challenge in Bangladesh,” Zeeshan said, adding that many businesses do not keep the records required for international certification.

Certification can also be costly, as projects may need to undergo multiple audits by independent validation and verification bodies, he said.

Despite the challenges, the potential financial return is significant. Plastic credits can fetch hundreds of dollars per tonne in international markets, depending on the project and market conditions, Zeeshan added.

He also stressed the importance of “additionality” -- the amount of plastic collected or recycled beyond what a company is legally required to do.

Mohammed Kamrul Hasan, executive director of RFL Group, said PRAN first applied for plastic credit certification in Bangladesh in 2024 after setting up a plastic recycling plant with an annual capacity of 30,000 tonnes.

PRAN had to undergo three rounds of audits and submit extensive documentation for the certification, he said. The company has secured registration but has yet to receive any plastic credits.

Plastic credit certification is becoming increasingly important for exporters as international buyers pay more attention to sustainability and responsible waste management, Kamrul said.

“Plastic credit certification is a matter of prestige as well as compliance for exporters,” he added.

Shamim Ahmed, president of BPGMEA, said waste could become a new source of economic value. He highlighted the opportunity to move beyond traditional waste management and build businesses around recycling and the circular economy.

ASM Kamal Uddin, former president of BPGMEA, and KM Iqbal Hossain, senior vice president of BPGMEA, also spoke at the event.