The founding investors of the fund include PepsiCo, Procter & Gamble, Dow, Danone, Unilever, The Coca-Cola Company and Chevron Phillips Chemical Company
Circulate Capital has launched a $106m fund to tackle ocean plastic in Asia (Credit: H. Hach from Pixabay)
Investment management firm Circulate Capital has launched a $106m fund to tackle ocean plastic in South and South East Asia.
The Circulate Capital Ocean Fund (CCOF) is claimed to be the world’s first investment fund to prevent ocean plastic in South and South East Asia, according to Circulate Capital.
Founding investors of the fund include PepsiCo, Procter & Gamble, Dow, Danone, Unilever, The Coca-Cola Company and Chevron Phillips Chemical Company.
Citing a recent Ocean Conservancy Report, Circulate Capital said that Asia is the biggest source of plastic leaking into oceans with 60% of damaging waste originating from the continent.
The report has identified a financing gap of between $28 and $40 per tonne for plastic waste collection in the five top polluting countries such as China, Indonesia, the Philippines, Thailand, and Vietnam.
Circulate Capital CEO Rob Kaplan said: “The good news is that we are able to reduce nearly 50% of the world’s plastic leakage by investing in the waste and recycling sector in Asia, and even more if we invest in innovative materials and technologies.”
More than 200 potential investment opportunities identified across Asia
CCOF will provide both debt and equity financing to waste management, recycling and circular economy start-ups to address the financing gap between the available private capital and the resources needed by Asia’s waste industry systems
It will also provide financing to SMEs in South and South East Asia, with this focused on preventing plastic pollution and advancing the circular economy.
The firm has identified more than 200 potential investment opportunities across Asia, with its first investments planned for the coming weeks.
Coca-Cola Asia Pacific communications, public affairs and sustainability vice president Matt Echols said: “For the beverage sector, the more recycled content used in any type of packaging such as 100% recyclable plastics, the lower the carbon footprint.
“That’s why at Coca-Cola we have invested in Circulate Capital and have committed to collect and recycle the equivalent of every bottle or can we produce by 2030.
“Beverage packaging does not need to become waste. By investing in the waste collection and recycling sector in this critical region, it can become a valuable material used again and again – a step closer towards a circular economy.”
In 2018, the firm planned to secure up to $90m funding for its strategy to combat ocean plastic.