PRINCIPLE 1. Additionality
The environmental impact of activities and projects must contribute to an improvement of historic trends of waste pollution. Positive lists are adopted for specific project types deemed additional by definition. See Guidance Note on Additionality for more info.
PRINCIPLE 2. No double counting
An essential requirement of the Circular Credits Mechanism is that the environmental impact related to the recovery and destination of waste should not be attributed to more than one entity. In practice, this means that credits cannot be issued for activities where this service has already been contracted and paid for (e.g., municipal waste collection services). Similarly, the credits can only be used once, to compensate for the footprint of a certain entity.
PRINCIPLE 3. Demonstrability - monitoring and verification
The amount of credits to be issued must be substantiated by evidence that demonstrates that the activity was conducted and that a certain amount of waste materials was indeed recovered and sent to an appropriate destination. This can be done using different types of documents, such as invoices/receipts associated with the sale of materials to recycling plants, bills of laden, transportation authorization, or balance records. This documentation must be kept and made available for third party verification, to substantiate the issuance of credits.
PRINCIPLE 4. No free-riding
Related to Principle 2, the CCM only recognises the environmental service if the activities are fairly paid for, in addition to any payment for the acquisition of physical recyclable materials. For instance, in the case where waste pickers are only paid for the sale of physical recyclable materials delivered by them to a buyer, the entity buying these materials are not entitled to claim the environmental service provided. It is understood that this is a transaction involving solely the purchase of waste materials as a feedstock for recycling plants, and not a contract for the provision of an environmental service. Payment for the environmental service must be over and above the payment for the recyclable materials purchased, creates a second revenue stream for its providers.