New fund aims big on plastic recycling

The Alliance to End Plastic Waste, Singapore, and Lombard Odier Investment Managers (LOIM), Switzerland, have announced their intention to launch what they call a circular plastic fund.

The fund will aim to raise $500 million from institutional and other investors for scalable solutions to remove plastic waste from the environment, increase recycling, and drive the global transition toward a circular economy for the plastic value chain,” the Alliance says. The Alliance also says it will “serve as a cornerstone investor in the fund.”

“Our goal in partnering with Lombard Odier in relation to a circular plastic strategy is to grow investments in solutions that can help end plastic waste and contribute to a circular economy,” says Jacob Duer, president and CEO of the Alliance. “The strategy harnesses the collective intelligence of the plastic value chain and connects it with capital, bringing much needed solutions to scale. I am confident this will help focus financial market attention on the investment opportunity that plastic circularity represents, and help to catalyze multiple sources of financing for investments in circular solutions for plastic waste.”

Jean-Pascal Porcherot, co-head of LOIM, says “is strategy presents a compelling investment opportunity. It will target opportunities across all segments of the private equity spectrum - including direct and co-investments investments - with the objective to reduce plastic waste issues worldwide and deliver attractive financial returns and sustainability outcomes.”

The Alliance says it has mandated LOIM to “build and manage the fund with the objective of generating positive environmental, social, and economic impact together with attractive financial returns.”

The organization cites “industry estimates” that the transition to a circular value chain for plastic packaging represents a potential $1 trillion global economic opportunity by 2030.

The new fund will aim to target opportunities involving collection and sorting infrastructure, technology-enabled recycling infrastructure, design solutions for improved plastic durability, reuse and recyclability. “It will also aim to drive innovation in plastic chemistry and production which can simplify or make end of life treatment easier or more effective,” says the Alliance.

Jim Fitterling, chairman and CEO of United States-based Dow and chair of the Alliance to End Plastic Waste, says, “The systemic transformation needed to enable a plastic circular economy requires societal, infrastructure and technology innovations. This strategy presents a meaningful opportunity to put the plastic waste management ecosystem firmly on the agendas of institutional investors to accelerate the transition to a global plastic circular economy.”