AEPW launches investment fund to support circular plastics strategies

The Alliance to End Plastic Waste and Lombard Odier Investment Managers want to raise $500 million from institutional investors and other accredited investors to support a new plastic circularity strategy.

Money from the fund will be used to support projects to eliminate plastic waste from the environment, increase recycling and support the global transition to a circular economy for the plastics value chain.

AEPW will serve as anchor investor in the strategy. The Alliance selected LOIM as its partner to build and manage the strategy following a thorough and competitive tender. Both view the positioning of plastic waste as a means to generate positive environmental, social and economic impact as well as attractive financial returns.

The groups say the effort is an opportunity to turn plastic waste into a resource, as well as generate economies of scale and economic returns. According to industry estimates, the transition to a circular value chain for plastic packaging represents a potential global economic opportunity of $1 trillion by 2030.

The strategy represents an attractive investment opportunity for clients, according to Jean-Pascal Porcherot, who co-leads LOIM and is managing partner of Lombard Odier Group, which focuses on opportunities across all segments of the private equity spectrum.

The strategy will target key themes that can directly contribute to a circular economy for plastics and accelerate global waste management opportunities, upstream and downstream – including collection and sorting infrastructure, recycling infrastructure based on technology, design solutions to improve plastic durability, reuse and recyclability. It also aims to stimulate innovation in the chemistry and production of plastics that can simplify or make end-of-life treatment easier or more efficient.

AEPW will act as a technical advisor to the strategy via a team of experienced professionals who will provide industry-led expert advice on the technical feasibility, commercial viability and scalability of plastic circularity solutions, as well as the waste management technology and infrastructure.

The obstacles to recycling are well known. Only 9% of the world’s plastic is recycled; most end up in incineration, open dumps, landfills or enter the environment as plastic waste.

“Our goal in launching this strategy with Lombard Odier is to increase investment in solutions that can help end plastic waste and contribute to a circular economy,” said Jacob Duer, President and CEO of the alliance.

“This strategy offers a significant opportunity to put the plastic waste management ecosystem firmly on the agenda of institutional investors to accelerate the circular economy of plastics globally,” added Jim Fitterling, President. -Chief Executive Officer of Dow Inc. and Chairman of the Alliance.

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