Recycle to earn, a new frontier for blockchain technology towards ESG goals

“Recycle to Earn” was the motto presented by Eric Vogel earlier this month while pitching his startup at the European Blockchain Convention, decades after he started recycling plastic and boxes from his grandmother’s house to make extra money for a Game Boy.

Vogel’s love of video games and growing interest in the impact of recycling in the world is behind his inspiration for Circularr, a London-based company that seeks to connect recyclers, manufacturers and brands through a decentralized recycling ecosystem.

Proper recycling is a growing challenge. According to the Plastic Waste Makers Index, recycling worldwide is not expanding fast enough to keep up with the plastic waste, resulting in greater chances of being dumped in oceans, beaches and rivers than going to recycling facilities. In 2021, over 139 million tonnes of single-use plastic waste was generated worldwide.

The nearly three-year-old startup allows consumers to deposit plastic waste at collection points, such as manufacturers of return machines, recycling points and smart bins through partnerships. The containers are collected and sent to a recycling facility. However, this widely used process is now powered by blockchain technology.

The plastic waste is rewarded with a deflationary utility token that can be used to exchange for exclusive incentives and offers through a native wallet, such as a free coffee or a meal, or to mint non-fungible tokens (NFT) with underlying data about recycled materials, such as .ex. its origin and type of plastic, providing end-to-end traceability of the recycling process.

“Plastic from a specific event or location can command an even higher price than a standard metric ton of recycled plastic, as it will have all the underlying data associated with it. So brands and organizations can upgrade this plastic to produce a set of limited edition. or items from important events,” Vogel told Cointelegraph, adding that:

“Using blockchain technology, it becomes possible to create a digital trail that records every step of the recycling process, from the collection of waste to the sale of recycled materials.”

The concept earned Circularr’s team the recognition of blockchain startup of the year at the European event. Recently, the startup also received a $50 million investment commitment from alternative investment group GEM, which provides liquidity and resources for pilot material recovery facilities (MRFs).

Similar efforts have been seen in other areas of the global environmental, social and governance (ESG) agenda. Blockchain technology and automated systems are increasingly being used to improve the efficiency and accuracy of the carbon market, a critical component in the fight against climate change. Vogel also noted that:

“Blockchain technology can help solve some of the challenges associated with recycling, such as the lack of trust between stakeholders and the difficulty in verifying the origin and quality of recycled materials.”

Circularr facilities and other collection points are planned to be deployed at train and motorway stations across the UK, as well as tube stations and airports in the US. Other partnerships with sports stadiums and events are also planned in countries in the Middle East and North Africa (MENA).

The startup’s upcoming efforts include implementing on- and off-ramps with partners to allow users to exchange tokens for other cryptocurrencies and fiat money, as well as a track and trace system planned for the second half of 2023.

Gamifying the recycling process is also one of the startup’s goals, targeting brands that aim to reward users with tokens and prizes for their recycled waste. “It all started with a Game Boy and a desire to make a difference. And now, here we are, working towards a better, more circular economy.”