Press Release: DFC Announces New $2.5 Billion Ocean Plastics Initiative
U.S. International Development Finance Corporation (DFC) announced today it aims to catalyze $2.5 billion in infrastructure investments aimed at reducing the discharge of plastic waste and marine debris into oceans and waterways under its new Ocean Plastics Initiative. The initiative seeks to catalyze private sector investment in projects that advance the development of efficient waste management, recycling, and other infrastructure projects in developing countries.
“DFC’s Ocean Plastics Initiative seeks to catalyze private investment to address an urgent need to clean up and preserve our oceans and waterways,” said Chief Executive Officer Adam Boehler. “Our new initiative encourages investment in important waste management and recycling projects to support emerging economies, promoting economic growth and development.”
Currently, about 150 million tons of plastic are in the world’s oceans and it grows by 8 million tons each year, creating a challenge for the world’s environment and economies. A lack of capital for waste management infrastructure has been a major barrier to solutions for the problem, especially for developing countries. Capital is needed to support critical waste and recycling infrastructure that collects, aggregates, sorts, and manages waste.
DFC’s Ocean Plastics Initiative will catalyze private sector investment in DFC-eligible emerging market countries by deploying DFC products such as equity financing, debt financing, political risk insurance, feasibility studies, and technical assistance. Eligible projects include those related to waste management, waste removal, waste to energy, recycling, conversion, and the waste management or recycling value chain.
The initiative builds on DFC’s previous work to reduce ocean waste. Earlier this year, DFC provided a credit guaranty to impact investor Circulate Capital, which provides financing to small businesses working to prevent ocean plastic pollution. Tridi Oasis, a small business in Indonesia that recycles used plastic bottles into packaging materials and textiles, is the first investment supported under the guaranty. DFC’s guaranty is helping Circulate Capital to mobilize $100 million in private investment to reduce plastic waste in oceans in Southeast Asia, and build value chains that convert waste into usable products while creating jobs.
To apply for financing under the initiative, please email firstname.lastname@example.org.
Photo courtesy of MegaPixl.