THE NEXT GENERATION OF CARBON CREDITS
NEW
YORK and DUBAI, UAE,
Nov. 28,
2023 /PRNewswire/ -- SMX (Security Matters) PLC
(NASDAQ:SMX; SMXWW), a pioneer in digitizing physical objects for a
circular economy, has announced today the planned launch of a
groundbreaking plastic cycle token, scheduled for release in Q2
2024. Amidst a global context where only an estimated 9% of plastic
is recycled1 (OECD, 2022) in a market valued at over
$40 billion2 (Statista,
2021), this initiative is being designed to present a reliable,
ethical digital credit platform, aiming to capitalize on billions
of dollars in recyclable plastics credits in a newly created
market.
The contemplated collaboration is expected to amalgamate a
diverse array of partners and sponsors, each contributing distinct
skills and expertise to create the Plastic Cycle Token. Consortium
members are being identified and would be selected to provide deep
domain knowledge and technology to ensure best practices and
technical proficiency.
This tradeable plastic cycle token is being designed to enable
companies to transition towards sustainable practices, encouraging
entities within and outside the plastic ecosystem, including oil
producers and waste management firms, to increase recycled content
utilization.
This initiative is also expected to position the SMX Plastic
Cycle Token as a next-generation alternative to carbon credits,
creating a new paradigm in the Impact ESG investment landscape.
Each token is being designed to represent a quantifiable amount of
recycled plastic using SMX's technology to physically mark the
plastics, potentially offering a tangible impact on environmental
circularity.
SMX believes that the goals of its Plastic Cycle Token project
aligns with the European Union's ongoing efforts to address the
limitations of the current carbon credit system3
(CarbonBrief 2023), including the adoption of a strict mass balance
definition4 (CEFIC, 2023). The proposed EU Packaging and
Packaging Waste Regulation5 (European Commission 2023)
aims for at least 50% of all EU plastic waste to be recycled by
2025.
Mass balance, a chain of custody model under ISO standard 22095,
is already utilized in sectors like biofuels and fair-trade
commodities. However, SMX believes that this is still not
sufficient. Some major corporations have formally advocated a
strict mass balance measurement with chemical and physical
traceability6 (Perstorp 2023). SMX's technology enables
physical traceability, supporting this Plastic Cycle Token model,
and SMX believes will incentivize genuine plastic recycling.
SMX's technology can precisely tangibly identify the origins and
composition of raw materials in consumer products and packaging,
promoting efficient recycling and reuse. It comprises a chemical
marker, reader technology, and blockchain data storage,
facilitating a global system for grading and certifying plastic
recycled content.
Footnotes:
- OECD, Global Plastics Outlook (2022),
https://www.oecd.org/environment/plastic-pollution-is-growing-relentlessly-as-waste-management-and-recycling-fall-short.htm
- Statista, Market value of plastic recycling worldwide from
2021 to 2031 (2021)
https://www.statista.com/statistics/987522/global-market-size-plastic-recycling
- CarbonBrief, In-depth Q&A: Can 'carbon offsets' help to
tackle climate change? (2023)
https://interactive.carbonbrief.org/carbon-offsets-2023/
- CEFIC, New European Commission Study Confirms Chemical
Recycling Is Better Than Incineration Of Plastic Waste (2023)
https://cefic.org/media-corner/newsroom/new-european-commission-study-confirms-chemical-recycling-is-better-than-incineration-of-plastic-waste/
- European Commission, Packaging waste, (2023)
https://environment.ec.europa.eu/topics/waste-and-recycling/packaging-waste_en
- Perstorp, Partnering with IKEA, Velux, and the LEGO Group
regarding mass balance (2023)
https://www.perstorp.com/en/news_center/news/2023/october/partnering_with_ikea_and_lego_regarding_mass_balance
Follow us through our social channels @secmattersltd
@smx.tech
About SMX
As global businesses face new and
complex challenges relating to carbon neutrality and meeting new
governmental and regional regulations and standards, SMX is
able to offer players along the value chain access to its marking,
tracking, measuring and digital platform technology to transition
more successfully to a low-carbon economy.
Forward-Looking Statements
The information in this
press release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to,
statements regarding expectations, hopes, beliefs, intentions or
strategies regarding the future. In addition, any statements that
refer to projections, forecasts or other characterizations of
future events or circumstances, including any underlying
assumptions, are forward-looking statements. The words
"anticipate," "believe," "contemplate," "continue," "could,"
"estimate," "expect," "forecast," "intends," "may," "will,"
"might," "plan," "possible," "potential," "predict," "project,"
"should," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. Forward-looking
statements in this press release may include, for example: matters
relating to the Company's fight against abusive and possibly
illegal trading tactics against the Company's stock; successful
launch and implementation of SMX's joint projects with
manufacturers and other supply chain participants of steel, rubber
and other materials; changes in SMX's strategy, future operations,
financial position, estimated revenues and losses, projected costs,
prospects and plans; SMX's ability to develop and launch new
products and services, including its planned Plastic Cycle Token;
SMX's ability to successfully and efficiently integrate future
expansion plans and opportunities; SMX's ability to grow its
business in a cost-effective manner; SMX's product development
timeline and estimated research and development costs; the
implementation, market acceptance and success of SMX's business
model; developments and projections relating to SMX's competitors
and industry; and SMX's approach and goals with respect to
technology. These forward-looking statements are based on
information available as of the date of this press release, and
current expectations, forecasts and assumptions, and involve a
number of judgments, risks and uncertainties. Accordingly,
forward-looking statements should not be relied upon as
representing views as of any subsequent date, and no obligation is
undertaken to update forward-looking statements to reflect events
or circumstances after the date they were made, whether as a result
of new information, future events or otherwise, except as may be
required under applicable securities laws. As a result of a number
of known and unknown risks and uncertainties, actual results or
performance may be materially different from those expressed or
implied by these forward-looking statements. Some factors that
could cause actual results to differ include: the ability to
maintain the listing of the Company's shares on Nasdaq; changes in
applicable laws or regulations; any lingering effects of the
COVID-19 pandemic on SMX's business; the ability to implement
business plans, forecasts, and other expectations, and identify and
realize additional opportunities; the risk of downturns and the
possibility of rapid change in the highly competitive industry in
which SMX operates; the risk that SMX and its current and future
collaborators are unable to successfully develop and commercialize
SMX's products or services, or experience significant delays in
doing so; the risk that the Company may never achieve or sustain
profitability; the risk that the Company will need to raise
additional capital to execute its business plan, which may not be
available on acceptable terms or at all; the risk that the Company
experiences difficulties in managing its growth and expanding
operations; the risk that third-party suppliers and manufacturers
are not able to fully and timely meet their obligations; the risk
that SMX is unable to secure or protect its intellectual property;
the possibility that SMX may be adversely affected by other
economic, business, and/or competitive factors; and other risks and
uncertainties described in SMX's filings from time to time with the
Securities and Exchange Commission.
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SOURCE SMX