The alliance to end plastic waste (Alliance) and the Lombard Odier investment manager (loim), a global wealth and asset management company, announced on May 12 that they intend to establish a new recycled plastics fund. The goal of the fund is to raise $500 million from institutional investors and other accredited investors for scalable solutions to remove plastic waste from the environment, increase recycling, and promote the global transition to a circular economy in the plastic value chain. The alliance will become the cornerstone investor of the fund.
After extensive competitive bidding, the alliance authorized loim to establish and manage the fund, which is committed to generating positive environmental, social and economic impacts and attractive financial returns.
— 1 —
Turning plastic waste into resources and promoting economies of scale and economic returns is a huge opportunity. According to industry estimates, by 2030, the transformation of plastic packaging to circular value chain means a potential global economic opportunity of US $1 trillion.
The new fund will seek to invest in scalable solutions to eliminate plastic waste in the environment, increase recycling, and promote the transition of the global plastic value chain to a circular economy. It is expected to represent us $1 trillion of global economic opportunities by 2030. For key themes, the fund will include collection and classification infrastructure, recycling infrastructure for technical support, and design solutions to improve the durability, reuse and recyclability of plastics. The fund will also seek to promote innovation in plastic chemistry and production, with the goal of more effective plastic scrap disposal.
Jean Pascal porcherot, CO director of loim and managing partner of Lombard Odier group, said: "this strategy provides a compelling investment opportunity. It will target opportunities in all areas of private equity - including direct investment and co investment - aimed at reducing the global plastic waste problem and providing attractive financial returns and sustainable development results."
The alliance will act as the technical advisor of the fund through an experienced professional team, which will provide industry-leading expert advice on the technical feasibility, commercial feasibility and scalability of plastic recycling solutions, as well as waste management technology and infrastructure.
— 2 —
The barriers to recycling are well known. Only 9% of plastics in the world are recycled; Most of them are eventually burned, dumped in the open air, buried or entered the environment as plastic waste. Although there are many ways to solve these problems, from infrastructure and collection systems to expanding innovative technologies, to systematically solving the problem of low market efficiency and transforming the linear supply chain into a closed loop, there is still a lot of work to do to end plastic waste. All of these solutions require significant capital investment.
Alliance will be the cornerstone investor of the fund, which aims to raise $500 million from institutions and other qualified investors. In addition, alliance will act as the technical advisor of the fund to provide industry-leading expert advice on the technical feasibility, commercial feasibility and scalability of plastic recycling solutions, as well as waste management technology and infrastructure.
"The systemic transformation required to achieve the plastic circular economy requires social, infrastructure and technological innovation. This strategy provides a meaningful opportunity to place the plastic waste management ecosystem firmly on the agenda of institutional investors to accelerate the transition to the global plastic circular economy," said Jim fittering, chairman, CEO and chairman of Dow