4. B and A - Baselines and Additionality

In the previous article in this pathway we heard about the BASE acronym (Baseline, Additionality, Solution implementation, Evaluation) that summarizes rePurpose Global’s impact process (or Outcomes-Based Circularity Implementation Mechanism).

The first of these steps - ‘B’ - was to scientifically establish baselines, and create bespoke solutions for each region that will create environmental outcomes over and above those baselines.

For rePurpose Global to create a project, the concept of "Additionality" is pivotal. This term refers to the surpassing of a baseline, business-as-usual scenario.

For example, in a scenario where only 2% of multi-layer plastics (MLP) are collected because doing so is unprofitable, funding can be used to incentivize the collection, recovery, and processing of MLP. If collection and recovery surpasses 2% then ‘additional’ impact has been created.Baseline reporting is the initial step: rePurpose Global conducts a study to establish the baseline quantity of plastic recovery and recycling rates in a new region. This isn’t always easy. In many regions, waste management data records are not well kept or communicated.

For rePurpose Global projects, baseline data has to include at least one of the following:

1. Analysis of peer-reviewed scientific secondary data, no more than 3 years old.
2. Collection and analysis of primary data in collaboration with local partners, academia, NGOs, and other credible entities.
3. Commissioning an independent data survey through a third-party expert agency.

With baseline data in place, the next step is an assessment of how feasible it is to create additionality. This is the ‘A’ in BASE.

Each project is required to demonstrate how it surpasses baseline scenarios (creates additionality) at regional, polymer, or project activity levels. At least one of the following has to be satisfied:

1. Positive List: Projects located in Least Developed Countries (LDCs), Small Island Developing States (SIDS), or Special Underdeveloped Zones (SUZs) qualify.
2. Penetration Rate: Projects are deemed additional if the collection and recycling rate per polymer is below 20% in the region.
3. Investment Analysis: Justification of VPR financing based on economic and financial indicators at the project level.

Together, baseline research and additionality criteria are the foundation for establishing our impact projects. It’s worth noting that this only remains valid for five years before being revalidated.

Our approach ensures that funding is directed towards projects globally that are most impactful in addressing plastic pollution in their respective regions.