ABOUT 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 $190 billion, the current investment trajectory is too slow to meet targets to reduce plastic leakage into the environment by 90 percent by 2040. An average of $32 billion a year of private investment went to plastics circularity between 2018 and 2023, far below the $1 trillion needed.
The latest figures are revealed in the third edition of the Plastics Circularity Investment Tracker, released by The Circulate Initiative (CI), a nonprofit organization dedicated to solving the ocean plastic pollution challenge in emerging markets. The latest report, which received support from the International Finance Corp., analyzed more than 5,500 transactions across 3,000 companies in 100 countries over a six-year period.
The Circulate Initiative is calling for greater investment in tackling plastic pollution. According to its executive director Michael Sadowski, “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.”
A mechanical shovel removes waste of the Prinsengracht following the Canal Parade in Amsterdam on Aug. 4, 2024. PHOTO BY RAMON VAN FLYMEN/ANP/AFP
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. The report seeks to mobilize additional capital and redirect it to regions where it is most needed. It revealed that Asia and Africa received 10 percent and 0.2 percent of total investments, respectively, over the six-year period, even though the two continents account for 90 percent of plastic waste emitted to the ocean.
Emerging markets received only 6 percent 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 percent of investments are channeled to downstream solutions like recovery and recycling. Solutions such as refill and reuse, which are designed to reduce plastics consumption, received only $8 billion (4 percent). Banks and corporate investment were the top two sources of funding, contributing to 37 percent and 31 percent of deal value, respectively, over the period.
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.
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