Global environmental certification standard company Cercarbono announced a world-first methodology for generating carbon credits from end-of-life vehicle (ELV) recycling at the Asia Climate Summit in Bangkok on 9 July.
The methodology establishes the criteria for quantifying greenhouse gas (GHG) emission reductions from the recovery and recycling of post-consumer materials in formal sector facilities.
The methodology covers only post-consumer ELV materials, including metals, plastics and glass, recovered as raw materials that match the quality of virgin materials, the methodology documents show. Projects must comply with Cercarbono's additionality guidelines.
It calculates emission reductions as the baseline production from virgin raw materials minus the project's production from recycled materials.
Projects must also follow all legal, environmental, labour, health and safety regulations, apply Cercarbono's Safeguarding Principles and report contributions to the Sustainable Development Goals (SDGs) using the SDGtool assessment mechanism.
Cercarbono and Mumbai-based Meta Materials Circular Market (MMCM) jointly developed the methodology. MMCM specialises in developing a digital ecosystem for the circular economy in the automotive industry.
This innovative methodology will enable ELV recycling systems to benefit from carbon pricing, MMCM said. The initiative has the potential to unlock 10bn rupees ($116mn) in carbon funding over the next decade, MMCM chief executive Nitin Chitkara said.
