The principle is simple: Manufacturer A who uses more PCR than required by the quotas receives credits for the surplus. Manufacturer A can sell these credits to manufacturer B, which cannot (yet) meet the quotas. Together, they achieve the quotas for PCR set in the PPWR.
Both sides benefit: Manufacturer A receives a financial incentive through the proceeds from credits to use more recyclates than would be required according to the quotas. Manufacturer B can meet the PCR quota through the purchase of credits and remain on the market with its products, even if there are not yet enough recyclates in the required qualities (e.g. for food contact) available.
How the system works in detail, including the verification and verification obligations of the participating companies, should be elaborated by the EU Commission in an implementing act based on Article 7(7) PPWR. We recommend as a condition that both sides, lender and borrower, must use plastics of the same polymer type (e.g. PE, PP, PET) in their products and produce highly recyclable products.