NORTH AMERICA – The Closed Loop Circular Plastics Fund has received a US$10 million investment from Japanese multinational banking and financial services institution Sumitomo Mitsui Banking Corporation (SMBC).
The investment aims to advance the recovery and recycling of rigid and flexible polyethene (PE) and polypropylene (PP) plastics in the US and Canada.
The Fund is a key part of Closed Loop Partners’ strategy to focus on PE, PP and flexible plastics. It also provides debt and equity financing and mainstream investments into recovery and recycling solutions and infrastructure to help address bottlenecks in the recycling system.
Fund performance is benchmarked according to a combination of financial and impact outcomes. This includes tonnes of PE and PP impacted and tonnes of greenhouse gas emissions avoided or reduced.
SMBC group chief sustainability officer Masayuki Takanashi commented: “SMBC is committed to sustainability while identifying partnerships that leverage our expertise and strong footprint in the Japan and Asia Pacific region.
“Our team is proud to partner in the Closed Loop Circular Plastics Fund’s catalytic, impact-first effort to accelerate infrastructure, equipment, municipal services, as well as innovation and enabling technologies related to flexible films and specific plastic types.”
With its investment, SMBC has now joined several other corporate investors, including LyondellBasell, NOVA Chemicals, Dow, Chevron Phillips Chemical, Charter Next Generation, SEE and SK geo centric, all of which have already contributed to promoting a circular economy.
Closed Loop Infrastructure Group head Jennifer Louie said: “SMBC joins our corporate partners, portfolio companies, subject matter experts and experienced Closed Loop Partners team to enhance ecosystem effect that bolsters our private credit and equity solutions.
“These solutions can help catalyze additional financial participation – accelerating projects, infrastructure and innovations needed to close the loop on plastics.”
In April, Closed Loop Partners managed the launch of two reusable bag pilots across three US states through The Consortium to Reinvent the Retail Bag.
Claimed to be the consortium’s largest-ever pilot, the initiative will take place in more than 150 stores.
The pilot is launched in partnership with the consortium’s founding partners CVS Health and Target. Major retailers DICK’S Sporting Goods, Dollar General, Kroger, TJX and Ulta Beauty also joined the initiative and will launch the pilot within their respective brands.
During the trial, all retailers will offer the same solutions from the consortium’s recently published playbook, including signage, marketing and customer prompts about reusable bags.
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