None of these executives are smiling. They have launched the fund in an effort to clean up the oceans and prevent plastics from entering the evironment in the first place. Left to right: Rob Kaplan (Founder & CEO, Circulate Capital), Bambang Candra (Asia-Pacific Commercial Vice President, Dow Packaging and Speciality Plastics), Matt Echols (Vice President, Communications, Public Affairs and Sustainability, Coca-Cola Asia Pacific), and Matt Kovac (Executive Director, Food Industry Asia)
A venture capital fund management company in Singapore has launched a $US100 million plastic pollution fund in an effort to curtail the flow of plastics into the oceans of Asia. The partners of the fund, the Circulate Capital Ocean Fund (CCOF), include some of the largest conglomerates whose product packaging is often seen in coastal cleanups, including The Coca-Cola Company, PepsiCo, Procter & Gamble, Dow, Danone, Unilever, and Chevron Phillips Chemical Company.
The fund comes at a time when the world’s oceans, and especially the oceans of Asia, are under assault from plastic. Microplastics found in shellfish. Marine plastics promotes disease on coral reefs. Marine plastics costs $US2.5 billion a year in losses. These are headlines from just the past year. We have an ocean plastic pollution problem, so much so that scientists have coined the term marine plastics, to describe something that shouldn’t be in the marine environment at all.
The fund will finance debt and equity financing for regional waste management efforts, and recycling and circular economy startups that are fighting what the fund calls a plastic crisis.
“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,” Rob Kaplan, CEO of Circulate Capital said in a statement released to the media. “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.”
About 60 percent of marine plastics originate from Southeast Asia, with China, Indonesia, Philippines, Thailand and Vietnam the top five ocean polluting countries in the world. A large portion of these pollutants can most likely be traced to the conglomerates that are contributing to the fund. They have realized that without efforts from industry, the marine plastic pollution problem cannot be corrected.
“Financing alone cannot solve the ocean plastic crisis,” the fund wrote in its press release. “It requires a full suite of solutions from policy and corporate commitments to financial incentives and changes in CONSUMER BEHAVIOR.”
“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,” said Matt Echols, Vice President, Communications, Public Affairs and Sustainability Coca-Cola Asia Pacific.
Circulate Capital was 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, the fund wrote.