Life Cycle Assessment (LCA) of Plastic Recycling and Its Impact on the Carbon Credit Market

Abstract Plastic waste has become a significant environmental concern, with millions of tons generated annually, leading to severe ecological and climate-related challenges. Recycling has emerged as a crucial strategy to mitigate these impacts by reducing resource depletion and greenhouse gas emissions. This study focuses on the Life Cycle Assessment (LCA) of mechanical recycling as a sustainable waste management solution, comparing its environmental footprint with other waste treatment methods, such as incineration. The research further explores the integration of plastic credit mechanisms, which provide financial incentives for sustainable plastic recovery and contribute to the transition toward a circular economy. A case study approach was employed, analyzing a real-world mechanical recycling plant, where primary data on energy consumption, emissions, and material recovery rates were collected. The LCA was conducted using SimaPro software, following ISO 14040 and ISO 14044 guidelines, with a functional unit of one kilogram of processed plastic waste. The findings indicate that mechanical recycling significantly reduces global warming potential, water consumption, and human toxicity compared to virgin plastic production and incineration. Additionally, the study examines how these environmental benefits can be quantified into plastic credits, ensuring their credibility through compliance with ISO 14067 standards. The research further evaluates the role of blockchain technology in plastic credit systems, using Revivex as a case study, where tokenization ensures transparency, traceability, and fraud prevention in sustainability markets. The results highlight that integrating LCA with plastic credits and blockchain verification can enhance corporate sustainability efforts, policy frameworks, and the scalability of recycling programs. By combining scientific impact assessments with economic incentives, this study presents a comprehensive framework for improving plastic waste management. The findings offer practical recommendations for policymakers, recycling industries, and stakeholders in plastic credit markets, reinforcing the role of mechanical recycling and market-driven mechanisms in advancing circular economy goals.