New fund investment targets plastic waste and recycling in Asia

Plastic pollution is one of the biggest global environmental challenges we face.

The problem is particularly acute in South and Southeast Asia, which alone accounts for around 50 percent of global plastic pollution. According to the OECD, 8.4 million tonnes of plastic leaked into nature from the region in 2022. That is more than one third of the global total. At the same time, plastic consumption in India alone is expected to grow 5.5-fold by 2060.

Solutions are urgently needed.

Impact Fund Denmark is now investing DKK 130 million (USD 20 million) in Circulate Capital Asia Fund II (CCAF2). The fund invests heavily in companies that recycle plastic so it does not end up in the ocean or in landfills. Circulate Capital focuses specifically on South and Southeast Asia and sees strong business potential in tackling plastic pollution.

Since 2018, Circulate Capital has built a strong presence in the region. The fund’s current portfolio companies have delivered significant growth and CO2 reductions through recycling. Companies previously backed by the fund include Lucro in India, which recycles flexible plastics, Recykal, which digitises waste streams, and Polindo Utama, which is one of Indonesia’s leading PET plastic recyclers.

The fund has investment professionals based in India, Vietnam, Thailand, Indonesia and Singapore, and works close to the markets where the need is greatest. Over a ten-year period, the fund estimates that its investments will prevent up to 30 million tonnes of waste and potentially reduce emissions by more than 50 million tonnes of CO2.

At Impact Fund Denmark, we aim to identify investments where solid returns go hand in hand with concrete solutions to major global challenges. Plastic is a massive problem, but it is also an area where the right companies can build strong business models while making a tremendous difference for the environment.

Lars Bo Bertram, CEO of Impact Fund Denmark.

The investment supports Impact Fund Denmark’s ambition to accelerate the green transition through investments that both reduce CO2 emissions and strengthen circular value chains in some of the world’s most challenged waste economies.

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