The Singapore-based Alliance to End Plastic Waste and Switzerland-based Lombard Odier Investment Managers (LOIM) have announced their intention to launch what they call the Circular Plastics Fund. The fund aims to raise $500 million from institutional and other investors for scalable solutions to eliminate plastic waste from the environment, increase plastic recycling, and drive the global transition to a circular economy for the plastics value chain. The Alliance also said it will "serve as a cornerstone investor in the fund."
"Our goal in collaborating with Lombard Odier on the Circular Plastics Strategy is to increase investment in solutions that help end plastic waste and promote a circular economy," said Jacob Duer, president and CEO of the Alliance. “The Strategy harnesses the collective intelligence of the plastics value chain and connects it to capital to bring much-needed solutions to scale. I believe it will help focus financial markets’ attention on the investment opportunity represented by the plastic recycling loop and help to provide multiple sources of financing for investments in circular solutions for plastic waste.”
Jean-Pascal Porcherot, co-head of LOIM, said: “The Strategy is a compelling investment opportunity. It will target opportunities across all sectors of the private equity landscape – both direct and co-investment – that aim to reduce the global plastic waste problem and deliver attractive financial returns and sustainable development outcomes.”
The alliance said it has mandated LOIM to “establish and manage the fund to generate positive environmental, social and economic impacts and attractive financial returns.”
The group cited "industry estimates" that the shift to a circular value chain for plastic packaging represents a potential global economic opportunity of $1 trillion by 2030.
The new fund will target opportunities involving collection and sorting infrastructure, technology-enabled recycling infrastructure, and design solutions that increase plastic durability, reuse and recyclability. "It will also aim to drive innovations in plastic chemistry and production that simplify or make end-of-life treatment easier or more efficient," the coalition said.
Jim Fitterling, Chairman and CEO of Dow Chemical and Chairman of the Alliance to End Plastic Waste, said: "The systemic transformation required to achieve a circular economy for plastics recycling requires social, infrastructure and technological innovation. This strategy provides a meaningful opportunity to put the plastic waste management ecosystem firmly on the agenda of institutional investors to accelerate the transition to a circular economy for plastics around the world."
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