Six representatives for the Dunedin Secondary Students Climate Forum (DSSCF) presented their action plan, "Plastic Bags Aren't Free Day", to councillors, community board representatives, retailers and council staff at the Skeggs Gallery on Monday.
The endorsement means the group can use the DCC logo on posters advertising the day.
Pupils from nine local schools gathered more than 2000 signatures from their fellow pupils in support of the day, which would be held on Saturday, August 15.
The day would highlight the costs associated with plastic bags.
Vayda Elder, of Otago Girls High School, said there were many unknown costs involved.
"Plastic bags cost us by harming the environment, using up valuable resources, and adding hidden costs to our shopping bills. When people receive them free of charge, they treat them as if they are worth nothing."
For this reason, the group asked local supermarkets and retailers to charge at least 10c for each bag handed out on the day, the proceeds from which would be donated to the Orokonui Ecosanctuary.
Cotton bags would be sold at stalls around town and at supermarkets. The price of these bags had yet to be confirmed.
Saskia McCulloch, of St Hildas Collegiate School, underlined the positive effect selling cotton bags would have.
"In New Zealand, 1 billion plastic bags are given out per year, and 2000 per minute. Less than 5% are recycled. Reusable cotton bags are a much better option."
Eleven of 15 councillors were present, each of them supporting the initiative.
Cr Dave Cull said he was happy for the council to assist.
Cr Kate Wilson admired the work the pupils were doing.
"Dunedin has a great future if we have a future generation as great as these kids. These guys are doing the education work."
Ruby Parker, of Kaikorai Valley College, said banning plastic bags was not the way to go, and imposing a cost on bags was a more realistic first step towards the ultimate goal of making Dunedin a plastic bag-free city.
She suggested Dunedin lead the way to a more environmentally friendly future by reducing the number of bags used, setting a good example for the rest of the country.
"It's not something we can do. It's something we should do."
- Cerisse Denhardt