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

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

AEPW will serve as a cornerstone investor in the strategy. The Alliance selected LOIM as its partner to build and manage the strategy following an extensive and competitive tender. Both see positioning plastic waste as a means to generate positive environmental, social, and economic impact together with attractive financial returns.

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

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

The strategy will target key themes which can directly contribute to a circular economy for plastic and accelerate opportunities in overall waste management, both upstream and downstream — including collection and sorting infrastructure, technology-enabled recycling infrastructure, design solutions for improved plastic durability, reuse and recyclability. It also aims to drive innovation in plastic chemistry and production which can simplify or make end of life treatment easier or more effective.

AEPW will act as technical adviser 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 waste management technology and infrastructure.

 The obstacles to recycling are well known. Only 9 percent of the world’s plastic is recycled; most of it ends up in incineration, open dump sites, landfill or enters the environment as plastic waste.

“Our goal in launching this strategy with Lombard Odier is to grow investments 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 presents a meaningful opportunity to put the plastic waste management ecosystem firmly on the agendas of institutional investors to accelerate the plastic circular economy globally,” added Jim Fitterling, chairman and CEO of Dow Inc. and Alliance Chair.

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