With 60% of ocean plastic originating from the region, Asia is the biggest source of plastic leakage into global oceans. A recent Ocean Conservancy Report identified a net financing gap between USD$28 and USD$40 per ton for plastic waste collection in the five top ocean polluting countries in the world – China, Indonesia, Philippines, Thailand and Vietnam.
A US$106 million (SGD$144 million) fund dedicated to preventing plastic from entering the Asian oceans was launched on 04 December 2019 - The Circulate Capital Ocean Fund (CCOF) is the world’s first investment fund dedicated to address Asia’s plastic crisis. The Singapore-based fund is also one of the ten largest ASEAN-based Venture Capital Funds in the market.
(Photo Source : CCOF)
"The good news is that we are able to reduce nearly 50% of the world’s plastic leakage by investing in the waste and recycling sector in Asia, and even more if we invest in innovative materials and technologies. This is why we are here in Singapore – a strategic hub of Southeast Asia - to prove that investing in this sector is scalable for the region and can generate competitive returns, while moving closer to solving the ocean plastic crisis."
--- Rob Kaplan, CEO Circulate Capital ---
CCOF is launched by Circulate Capital, a Singapore-based and MAS licensed venture capital fund management company with founding investors and partners among the world’s leading companies; PepsiCo (the first investor), Procter & Gamble, Dow, Danone, Unilever, The Coca-Cola Company, and Chevron Phillips Chemical Company LLC. To address the financing gap between available private capital and resources needed by Asia’s waste sector, CCOF will provide both debt and equity financing to waste management, recycling, and circular economy start-ups and SMEs in South and Southeast Asia focused on preventing plastic pollution. Circulate Capital has identified more than 200 investment potential opportunities across a range of industries in the region, with their first investments targeted in the coming weeks.
"Circulate Capital plays a critical role in solving the issue of plastic waste in our environment. Supporting companies and infrastructure that are addressing plastic waste will catalyze the development of systems designed to advance a circular economy for plastics."
--- Bambang Candra, APAC Vice President Dow Packaging & Specialty Plastics ---
The fund's launch comes at a time where the Singapore government has initiated recent green investment programs. These include the Monetary Authority of Singapore's (MAS) recent commitment to US$2 billion of green investments directed at sustainable projects and initiatives such as the Zero Waste Masterplan and a Resource Sustainability Bill as Singapore aims to establish itself as the regional Circular Economy Centre of Excellence, driving green investment efforts around the region and the world.
(Photo Source : CCOF)
Circulate Capital’s investment model seeks to mobilize institutional investors by blending concessionary funds with investment capital. Its objective is to mitigate risk and demonstrate that investments in turning waste into value can ultimately provide attractive financial returns.
"For the beverage sector, the more recycled content used in any type of packaging such as 100% recyclable plastics, the lower the carbon footprint. That’s why at Coca-Cola we have invested in Circulate Capital and have committed to collect and recycle the equivalent of every bottle or can we produce by 2030. Beverage packaging does not need to become waste. By investing in the waste collection and recycling sector in this critical region, it can become a valuable material used again and again - a step closer towards a circular economy."
--- Matt Echols, Vice President, Communications,
Public Affairs and Sustainability Coca-Cola Asia Pacific ---
Public Affairs and Sustainability Coca-Cola Asia Pacific ---
To address a full suite of solutions from policy and corporate commitments to financial incentives and changes in consumer behaviour, Circulate Capital has also partnered with a number of nonprofit organizations, including Ocean Conservancy, Partnerships in Environmental Management for the Seas of East Asia (PEMSEA), and The Circulate Initiative (TCI), a nonprofit organization launched in October 2019 dedicated to ending ocean plastic pollution and building thriving, inclusive economies. By combining the efforts of the Circulate Capital Ocean Fund, The Circulate Initiative and other partners, the quality and quantity of investable opportunities will increase and foster conditions which entrepreneurs in the waste ecosystem need to succeed.
(Photo Source : CCOF)
About Circulate Capital
Circulate Capital is an investment management firm dedicated to incubating and financing companies and infrastructure that prevent ocean plastic. We focus on the prevention of mismanaged plastic waste in countries located in South Asia and Southeast Asia, regions that contribute disproportionately to ocean plastic pollution primarily because they often lack investment in critical waste and recycling infrastructure to manage the problem. We were created in collaboration with Closed Loop Partners and Ocean Conservancy, and our founding investors include PepsiCo, Procter & Gamble, Dow, Danone, Unilever, The Coca-Cola Company and Chevron Phillips Chemical Company LLC.
