A group of 28 global companies have pledged $1.5 billion to reduce plastic waste in the next 5 years. Which companies are taking steps to end plastic waste?
Continuing our theme on plastic waste around the world here is a interesting scoop from the Alliance to End Plastic Waste (AEPW).
Last week the group which consists of 28 organisations that manufacture plastics and consumer goods, announced it would pledge to spend $1.5 billion spanning over the next 5 years on plastic waste reduction.
It doesn’t sound like the usually token gesture are some very big multinationals have signed up to this including DuPont, Procter & Gamble and Royal Dutch Shell.
The initiatives investment will go towards financing Asia and Africa’s waste disposal infrastructure. More specifically how authorities actually collect waste from the general public.
Interestingly it also looks to design waste management systems in cities that are close to rivers and transportation modes.
Indeed the AEPW estimates up to 90% of worldwide ocean pollution comes from only 10 rivers. A very scary statistic that people have to be carefully convinced of.
Also allowed for in the fund is spending on education for governments and the public alike. Clean Up’s in very polluted areas and finance for new business start up’s looking to develop technologies for the disposal of plastic waste.
Up to 8 million tonnes of plastic waste are now ending up in our oceans each year. Mainly due to the disposable, one use plastic products we have all become too used to.
Other culprits include foil packaging for shipping as well as paper and board products.
AEPW Grows from 28 to 70 Members in 3 Years
In just three years, the Alliance to End Plastic Waste (AEPW) has expanded from its initial 28 members to a remarkable 70 companies and organisations. This growth demonstrates the worldwide commitment to fighting plastic waste and the appeal of the AEPW's mission.
Numerous Projects and Partnerships
The AEPW has been actively involved in many projects and partnerships to tackle the global plastic waste problem. Approximately 40 member companies have pledged to support around 60 additional projects. These projects cover a wide range of initiatives, from building critical infrastructure in places like Indonesia and Ghana to advanced recycling efforts in the United States and Thailand. They also include community engagement programs in various countries and cleanup projects in places like Singapore and Sri Lanka.
A Global Effort
The AEPW's projects are spread across 29 countries and involve over 80 cities, showing a global commitment to addressing plastic waste. However, it's important to note that the AEPW Progress Reports are not independently audited, and no specific organisation takes responsibility for their content.
Challenges and Setbacks
Some of these projects are still in progress, and new partners are constantly joining the AEPW. While there have been successes, there have also been setbacks. For example, the Renew Oceans program, which aimed to clean up plastic in the Ganges River, had to stop due to challenges posed by the COVID-19 pandemic and the AEPW's limited capacity to address the issue at the necessary scale.
Seeking More Financing
The AEPW is actively seeking additional funding to scale up sustainable solutions to end plastic waste. They've partnered with Lombard Odier Investment Managers to launch a circular plastic fund to raise \$500 million from investors. It's unclear whether this initiative will be added to the AEPW's original budget of $1.5 billion for the first five years of operation.
A Growing Opportunity
Lombard Odier Investment Managers sees the potential for a $1.2 trillion market opportunity in plastic production, recycling, and infrastructure by 2030. This raises questions about the sufficiency of the AEPW's initial investment target. The AEPW aims to achieve "five times the leverage," potentially raising an additional $7.5 billion. Both organisations agree on targeting collection, sorting, and recycling infrastructure and innovations in plastic production to enhance sustainability, reusability, and recyclability.
Plastic Circularity Fund
The AEPW launched another amazing measure to further the fight to eliminate plastic and its called the “Plastic Circularity Fund”. The Lombard Invst MGR manages this fund. This fund offers a unique way to convert waste, particularly plastic into reliable resources. With the help of AEPW and the investment managers, institutional investors and partners are contributing to this fund in the form of equity capital.
This fund aims to boost the circular economy, which would help in eliminating waste plastic. Through viable and scalable options, its objective is to promote recycling.
Investment Focus
The fund seeks investment opportunities from interested businesses across the circular economy chain. During the initial launch, the AEPW contributed amounting to $10 million to the fund. It currently provides technical assistance and expertise in evaluating the viability of circularity solutions to eliminate or recycle plastics.
Growing Support
Other than Dow & LyondellBasell Industries, more prominent companies are anticipated to become members or invest in the fund. This collective effort reflects the growing commitment to address the plastic waste problem and transition to a circular economy.
