Chevron Phillips Chemical has joined Circulate Capital, an investor advancing a circular economy for plastics in growing nations, to launch of a $65 million initiative to combat plastic pollution in Latin America and the Caribbean.
CPChem is one of a group of investors pledging to support the initiative, which will initially target Brazil, Chile, Colombia and Mexico before expanding across the region.
The goal of the initiative is to scale the recycling supply chain, address climate change and improve the economies of the affected nations, investors said.
“We have identified promising opportunities across Latin America that, if scaled, could turn the tide on the plastic waste crisis in the region,” said Rob Kaplan, CEO and founder of Circulate Capital. “By applying the lessons and best practices from our years of work in South and Southeast Asia, we are confident that we can support solutions in Latin America’s high-growth markets to create circularity at scale. Our corporate partners will also play a critical, strategic role in helping best-in-class recyclers to connect with global supply chains, and we look forward to their collaboration.”
In addition to CPChem, IDB Lab, Builders Vision, Danone, Dow, Mondelēz International and Unilever are participating in the initiative.
The growing economies across Latin America and the Caribbean have advanced faster than their waste management and recycling infrastructures have developed, according to the United Nations. This has created the opportunity to strengthen the recycling value chain across the region.
This joint initiative between Circulate Capital and its partners aims to:
- Scale companies with systemic solutions that rethink recycling supply chains, from collecting and sorting to processing and manufacturing;
- Mitigate climate change and environmental risks;
- Advance the circular economy for plastic; and
- Create jobs in local communities.
“We’re pleased with the success and impact Circulate Capital has had at putting investment dollars to work in Asia, and we’re excited to be a part of what this initiative will accomplish in the Latin American and Caribbean regions,” said Jay Bickett, VP Polymers at CPChem. “These collaborations are a significant driver in the advancement of a circular economy.”
Beyond financing, Circulate Capital and its partners provide mentoring and technical support to recycling companies to help them reach global quality standards and gain access to the global supply chains.