Closed-loop partners, industry and environmental groups are preparing to jointly raise funds to invest in projects to improve waste management systems in Asia and help reduce marine pollution.
They announced on July 18 that they would start raising new investment funds and received support from the Circulate Capital in the plastics industry. Last year, closed-loop companies, environmental groups and the plastics industry together raised $150 million to reduce marine plastic waste. .
The project focuses on Asia, as half of the approximately 8 million tons of plastic waste that flows into the ocean each year comes from Asian developing economies with inadequate waste disposal capacity.
The leader of the revolving capital is Rob Kaplan, the co-founder of the closed-loop company. The closed-loop company used a similar investment model to raise $100 million from retailers, large companies and other interested parties to improve the North American waste management system. “South Asia and Southeast Asian countries produce the most plastic waste, but they lack the necessary waste disposal infrastructure to control this problem. Financing innovative local companies is a key step in meeting this challenge and can ultimately be reduced,” he said. Plastic waste that flows into the ocean is also an important measure to improve economic development and public health.
The group's seed funds come from the American Chemistry Council, the World Plastics Council, DuPont, Dow Chemical, and a number of consumer goods manufacturers such as Coca-Cola, Kimberly-Clark and Baike Cola. Diego Donoso, General Manager, Dow Chemical Packaging and Specialty Plastics Division : 'The development of the Southeast Asian economy has led to an increase in the demand for consumer packaging, but unfortunately, the waste management infrastructure has not been able to keep up with the increase in the amount of waste generated. This plan can be a model to find solutions to problems. Program, and achieve the goal of eliminating waste into the ocean. '
The new company will operate independently of the closed-loop company, and the first investment is expected to be in place in the first quarter of 2019. The company hopes to prove its concept for potential investors. Kaplan said: 'Our goal is to remove capital barriers, and circular capital seeks to fill capital vacancies. From the investment market, the funds are collected, classified, processed, and then made into useful products, which ultimately contribute to the improvement of the marine plastic waste crisis. Our company is not the only solution for marine plastic waste, we also need effective Policies, environmental regulations, strong partners in the supply chain and the entire ecosystem. '
Recycling capital is expected to focus on China, Indonesia, the Philippines, Vietnam and Thailand's waste management system, which can reduce plastic waste into the ocean by 45%.
The company will seek other investments. It is said that by 2030, total infrastructure investment in Asia will reach US$26 trillion, but less than 5% of its infrastructure needs are allocated to the top 100 institutional investors in Asia.
Environmental Conservancy is also one of the partners. The international association is headquartered in Washington, DC, and its managing director Susan Ruffo said: 'At present we need a variety of methods to control the plastic waste flowing into the ocean, science shows that investment is abandoned The material management system, collecting garbage in Southeast Asia is one of the most influential methods, the company can act to help solve the marine plastic waste crisis. From Buckingham Palace to Starbucks board, we see everyone is concerned about marine plastic waste, consumers, Government and industry people are aware of the problem and start looking for ways to solve the problem. '
The American Chemistry Council in Washington also said that it welcomes such efforts and hopes to introduce more investment and systems to collect recycled plastics. Steve Russell, vice president of ACC Plastics and a member of the closed-loop marine cleaning committee, said: 'Set up and improve the system, recycling Used plastics, turning them into useful products, is the quickest and most definitive means of cleaning the oceans and improving people's living standards.'
Revolving Capital also announced a proposal process request for financing applications for companies and projects.