SINGAPORE, July 30, 2024 /PRNewswire/ -- The Circulate
Initiative is calling for greater investment into tackling plastic
pollution, as new data reveals an average of US$ 32 billion a year of private investment went
to plastics circularity between 2018 and 2023, far below the
one trillion dollars needed.
22 million tonnes of plastic waste leaked into the
environment in 2019, and this could double by 2060. With total
investments into plastics circularity since 2018 at only
US$ 190 billion, the current
investment trajectory is too slow to meet targets to reduce plastic
leakage into the environment by 90% by 2040.
The latest figures are revealed in the third edition of the
Plastics Circularity Investment Tracker, released by The Circulate
Initiative, a non-profit organization dedicated to solving the
ocean plastic pollution challenge in emerging markets. The latest
report, which received support from the International Finance
Corporation (IFC), analyzed more than 5,500 transactions across
3,000 companies in 100 countries over the six year period.
Additional key findings reveal the following:
- Emerging markets received only 6% of investments, despite the
greater impact of plastic pollution in these economies.
- While investment amounts fall short of financing needs across
the plastic lifecycle, 82% of investments are channeled to
downstream solutions like recovery and recycling, while solutions
such as refill and reuse, which are designed to reduce plastics
consumption, received only US$ 8
billion (4%).
- Banks and corporate investment were the top two sources of
funding, contributing to 37% and 31% of deal value respectively
over the period.
- While early-stage investment is needed to foster innovation and
new business models, only 2% of investments went to firms in this
space in their early stages of development.
Michael Sadowski, Executive
Director of The Circulate Initiative said: "The Circulate
Initiative is thrilled to launch the third edition of the Plastics
Circularity Investment Tracker in cooperation with IFC. While the
investment gap to tackle plastic pollution is significant, in
showcasing examples of successful, innovative investment models, we
hope to inspire more financial decision-makers to see the
opportunity to join the global fight against plastic
pollution."
The new data was released ahead of the final round of
negotiations for an international legally binding instrument on
plastic pollution, including in the marine environment, set to take
place in November and December 2024,
in what will be a critical opportunity to set the course for the
long-term future of investing in plastics circularity.
Jamie Fergusson, Global Director
of Climate Business at IFC said: "As we build on the momentum of
the negotiations for a global plastics treaty, it is imperative
that the public and private sector work together to translate the
potential commitments from this treaty into tangible actions. IFC
is ready to support companies investing in emerging markets, which
currently only receive six percent of investments, to foster a
circular economy that benefits all."
In releasing the data, The Circulate Initiative emphasized the
importance of the global plastics treaty to not only mobilize
additional capital, but to redirect it to regions where it is most
needed. The report revealed that Asia and Africa received 10% and 0.2% of total
investments respectively over the six year period, even though the
two continents account for 90% of plastic waste emitted to the
ocean.
Showcasing a series of successful investments, the report also
demonstrates a growing acceptance of innovative investment
approaches such as thematic loans and bonds, blended finance and
outcomes-based financing - which will be critical to the
mobilization of private capital for tackling plastics
pollution.
About The Circulate Initiative
The Circulate Initiative is a non-profit organization that works to
solve the plastic pollution challenge and build circular and
equitable economies across emerging markets. It delivers
cutting-edge research, builds high-impact programs, and drives
collective action with industry stakeholders including businesses,
investors, and policymakers. For more information, visit:
www.thecirculateinitiative.org.
About IFC
IFC — a member of the World Bank Group — is the largest global
development institution focused on the private sector in emerging
markets. We work in more than 100 countries, using our capital,
expertise, and influence to create markets and opportunities in
developing countries. In fiscal year 2024, IFC committed a record
$56 billion to private companies and
financial institutions in developing countries, leveraging private
sector solutions and mobilizing private capital to create a world
free of poverty on a livable planet. For more information, visit
www.ifc.org.
Logo -
https://mma.prnewswire.com/media/2471521/TCI_logo_transparent_positive_Logo.jpg
View original
content:https://www.prnewswire.co.uk/news-releases/the-circulate-initiative-issues-call-to-action-to-financial-community-as-investment-gap-widens-to-meet-targets-to-tackle-plastic-pollution-302209312.html