New York-based Closed Loop Partners has announced that several large consumer brands and corporate foundations are extending more than $54 million in capital commitments with the Closed Loop Infrastructure Fund (CLIF). According to a news release from Closed Loop Partners, the original nine investors in the fund are extending their capital commitments, strengthening their investment in the infrastructure needed to build a more circular economy.
The original nine investors include 3M, Coca-Cola, Colgate Palmolive, Johnson & Johnson Consumer Health, Keurig Dr Pepper, PepsiCo, Procter & Gamble, Unilever and The Walmart Foundation. Closed Loop Partners says Amazon, Danone North America, Danone Waters of America, Nestlé Waters North America and Starbucks have since joined the fund. These companies’ investments support additional recycling infrastructure and spur growth around end markets for postconsumer materials in North America.
The initial investment from these brands has already leveraged more than $200 million in co-investment, supporting development in domestic recycling infrastructure, local jobs and new markets in cities across the U.S. The investments have helped Eureka Recycling in Minneapolis, which is a nonprofit social enterprise that recovers about 100,000 tons of mostly residential recycling per year, as well as Emerald Coast Utilities Authority in Florida and TemperPack in Virginia, a manufacturer of plant and fiber-based insulated packaging solutions that can be recycled in curbside programs.
The organization says 37 of the world’s largest consumer brands and retailers—including some who have invested in Closed Loop Partners—have made public commitments to use recycled plastics in their packaging within the next 10 years. Current projections indicate a demand of about 5 million to 7.5 million metric tons of recycled content by 2030, requiring an increase of supply by 200 to 300 percent. With the additional $54 million in investments, Closed Loop Partners reports that it plans to fund similar projects in the future.