Tidey Validates Ocean-Bound Plastic Credits Through Chain of Custody Tracking
Results
Pounds of plastic collected & recorded
Ocean-bound plastic credits produced
Increase in plastic credit revenue
Big Picture
Every year, a staggering 14 million tons of plastic contaminate the world's oceans, with an alarming 80% originating from land as mismanaged waste. The absence of effective waste management systems in many regions further exacerbates this issue. A prime example is Guatemala, where lax control over waste collection and disposal has led to significant environmental challenges. In this country, waste often accumulates in unauthorized dumpsites. After heavy rains or strong winds, it then pollutes rivers, lakes, and eventually the ocean. It is estimated that up to 95% of Guatemala's waterways suffer from pollution as a result of these practices.
Plastic credits are an emerging solution to curtailing the above issues. Companies can purchase plastic credits to achieve plastic-neutral certification for their products or, in some cases, their entire business, based on the quantity of offsets acquired. Tidey plays a vital role in this ecosystem by producing ocean-bound plastic credits, which directly finance waste recovery and recycling initiatives for coastal communities in Guatemala. Each plastic offset credit provided by Tidey represents the collection and recycling of one pound of plastic that was at risk of ending up in the ocean. To ensure transparent and authentic plastic credits, Tidey partnered with BanQu, establishing a verified chain of custody of recyclables.
Problem
Despite their prevalence, plastic credits face growing scrutiny due to issues of double-counting or greenwashing claims. To ensure their partners have confidence in the authenticity of purchased plastic credits, and to access grant funding for further revenue streams, Tidey sought a secure and transparent system that could:
- Capture geo-located, source-level data to verify the origin, weight, and type (e.g., ocean, ocean-bound, nature-bound) of reclaimed plastic waste.Â
- Automatically account for contamination rate to accurately reflect qualified recycled materials.
- Ensure fair and completed payments to waste collectors – verified with SMS.
- Create a verifiable chain of custody of plastic credits to eliminate double counting and trace each offset credit to the contributing waste collector.
- Monitor volumes of plastic prepared and shipped for recycling from the warehouse to the manufacturing facility.
Enter BanQu
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Solution
Sowing a Better Ecuador through Traceability and Transparency
In March 2023, Tidey and BanQu joined forces to track the chain of custody of plastic offset credits – driving recycling transparency and accountability. Since the launch of the project, Tidey has registered 100 waste collectors on BanQu’s platform, recorded over 250,000 traceable ocean-bound plastic credits, and their revenue from selling plastic credits has increased by 47%. The project’s reach and impact continue to expand with ongoing assistance from BanQu’s global support team.
To create a verifiable audit trail of plastic credits, Tidey uses BanQu’s cutting-edge blockchain technology to track the exchange of custody of recycled plastic from collector to credit. Starting from the source, Tidey truck drivers travel to designated collection points where they weigh and purchase plastic from waste pickers. These drivers record transactions on BanQu by completing forms that specify who collected the waste, the weight and type of plastic, the location of the transaction, and the payment due. Additionally, Tidey calculates that, on average, 14.8% of the weight recorded when they purchase plastic from collectors is contaminated from water, dirt, pebbles, or deteriorated plastic that can't be easily recycled. BanQu's automation feature seamlessly turns captured form entries into transactions, adjusts the weight of recycled materials bought from collectors by the contamination rate, and accurately calculates the volume of usable recyclables.
After making their rounds to each collection point, truck drivers transport reclaimed plastic to the Tidey warehouse where it is prepared for recycling. BanQu improves the warehouse’s operational efficiency by automating manual operations and simplifying data storage. For example, data is stored on BanQu’s secure, decentralized, device-agnostic platform rather than on copious Excel spreadsheets. Once recyclables are ready for transport, transactions between the warehouse and the manufacturer are recorded on BanQu. The blockchain platform ties the transaction to the asset’s chain of custody, validating the plastic has been collected, shipped for recycling, and is ready to be counted as a plastic credit.Â
As a result, Tidey can easily access real-time reports for monitoring trends regarding the origin of their supply, inventory levels, and plastic credit production. By consolidating data on a secure and transparent system, Tidey can track the exchange of custody from the waste picker to the plastic credit buyer and every step in between. Furthermore, Tidey’s partners can view the chain of custody of their purchased plastic credits on the BanQu dashboard. Chain of custody tracking also assures Tidey clients that the credit they receive is tied to their organization and isn’t double-counted, increasing trust and accountability. Moreover, Tidey can access new revenue streams, such as grant funding or additional partnerships, by substantiating their ocean-bound plastic credits with verifiable, primary data.
Overall, Tidey, powered by BanQu, has successfully demonstrated the authenticity of ocean-bound plastic credits, enhancing Guatemala's environmental and economic future.
Benefits
- Increased customer confidence in purchased ocean-bound plastic credits.Â
- Access to additional revenue streams through transparent claims.Â
- Enhanced efficiency through digitization and automation of operations.
- Real-time insights and reports into the origin and preparation of recyclables and amount of plastic credits produced.Â
Since using BanQu our revenue from selling plastic credits has increased 47%. We attribute much of this to having a credible, traceable supply chain tracked by BanQu. The ability to show our supporting partners when and where the plastic that they funded by purchasing plastic credits is collected and recycled, is an unprecedented advancement in the industry. We are excited to be the first to offer this because of BanQu’s technology.
CEO of Tidey
Jeremy Porter
Tracking plastic credits through BanQu gives our collectors a reliable history of the plastic they’ve collected and the income they’ve earned which has the potential of providing financing opportunities to them that they wouldn’t have had previously. We love having our supply chain tracked and transparent. BanQu’s technology is helping us formalize an informal waste sector and ensure that our supply chain is ethical.
Co-Founder of Tidey
Kathryn Porter