US$106 Million Fund Launched To Tackle Asia’s Ocean Plastics Problem

The Circulate Capital Ocean Fund will provide both debt and equity financing to waste management, recycling and circular economy companies in South and Southeast Asia.

AsianScientist (Jan. 8, 2019) – A US$106 million fund dedicated to preventing plastic from entering Asian oceans has been launched in Singapore. The Circulate Capital Ocean Fund (CCOF) is the world’s first investment fund dedicated to addressing Asia’s plastic crisis.

With 60 percent of ocean plastic originating from Asia, the region is the biggest source of plastic leakage into global oceans. An Ocean Conservancy Report identified a net financing gap between US$28 and US$40 per ton for plastic waste collection in the five top ocean polluting countries in the world—China, Indonesia, Philippines, Thailand and Vietnam.

“The good news is that we are able to reduce nearly 50 percent 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,” said Mr. Rob Kaplan, CEO of Circulate Capital.

“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,” he added.

To address the financing gap between available private capital and resources needed by Asia’s waste sector, the CCOF will provide both debt and equity financing to waste management, recycling and circular economy startups and small- and medium-sized enterprises in South and Southeast Asia. Circulate Capital has identified more than 200 investment potential opportunities across a range of industries in the region.

The fund’s launch comes at a time where the Singapore government has initiated recent green investment programs. These include the Monetary Authority of Singapore’s recent commitment to US$2 billion of green investments directed at sustainable projects. The city state has also launched initiatives such as the Zero Waste Masterplan and a Resource Sustainability Bill as it aims to establish itself as the regional Circular Economy Center of Excellence, driving green investment efforts around the region and the world.


Source: Circulate Capital; Photo: Shutterstock.
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