Financial Solutions to the Marine Plastics Crisis in East Asia and the Pacific

A recent post by the International Finance Corporation highlighted an investment by Circulate Capital, a Singapore-based climate fund, in Union J Plus in Thailand, “a women-owned and led company that collects and recycles large volumes of domestic plastic waste in Thailand and converts it primarily into premium, food-grade polyolefin plastic”. The injection of capital “will enable Union J Plus to recycle 30,000 tons of plastic a year, including 20,000 tons of premium, food-grade polyolefins.”  The IFC also reports on a growing number of blue bond issuances in the region by pioneers of this instrument like T. Rowe Price. Proceeds from the bonds are used to invest in an array of commercial businesses that reduce marine pollution and sustain oceans and rivers.

“Plastic production plays its own role in the climate crisis, too”, notes the IFC. “Almost every piece of plastic is made from fossil fuel, and greenhouse gases are emitted at every stage of their lifecycle, from extraction to disposal. Production alone accounts for roughly 6 percent of global oil consumption, equivalent to the oil consumed by the global aviation sector. If the use of plastics continues as expected, the sector will account for 20 percent of oil consumption and 15 percent of the global annual carbon budget by 2050.” Access the full post HERE