How do ARCs support investments in recycling?

Similar to Renewable Energy Certificates (RECs) for renewable energy, ARCs separate the environmental attribute from the physical material and allow it to be traded on the open market. To avoid double-counting, the corresponding physical material is sold without a recycled claim. Meanwhile, users of plastics may purchase and retire ARCs, and by doing so, provide financial support to investments in material reprocessing. When ARCs are paired with plastics of the same type used in a finished product or package, that item may carry a claim that it supports investments in recycling.