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Closed Loop Partners launches local recycling fund

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Closed Loop Partners launches local recycling fund

Closed Loop Partners has created the Closed Loop Local Recycling Fund with an initial investment of $35 million from PepsiCo Beverages North America, Purchase, New York. The fund will establish small, modular recycling systems in communities across the U.S., reducing the need for the costly transportation of recycled materials to larger material recovery facilities (MRFs), increasing recycling in areas with no or limited access to these services. The material processed at these sites will be used to support PepsiCo’s sustainable packaging goals, the companies say. - RecyclingToday

This first-of-a-kind investment from PepsiCo ushers in a new future for local recycling, empowering communities across rural America and small cities to reduce waste and harness the value of their recycled commodities. By closing the loop on these commodities, which can then re-enter local manufacturing supply chains, we are better equipping communities with the tools needed for resilience against a globally changing climate, while also creating new revenue opportunities and jobs. We look forward to continuing our long-standing partnership with PepsiCo to build and strengthen circular supply chains.

Ron Gonen, founder and CEO of Closed Loop Partners, which is based in New York City

The smaller, local MRFs lay the groundwork for the future of recycling, the companies say. Each individual system creates the capacity to recycle at least 8,000 tons per year of materials, including keeping 400 tons of polyethylene terephthalate (PET) in circulation annually. The companies also expect these MRFs to yield higher quality plastic while also reducing the costs and greenhouse gas emissions associated with transporting materials longer distances.
This announcement follows PepsiCo’s $15 million investment in Closed Loop Partners’ Leadership Fund, a private equity fund that seeks to acquire and grow companies, including those in the packaging value chain, to strengthen recycling infrastructure and build circular supply chains that keep materials out of landfills. 

As companies—including PepsiCo—set ambitious goals to use more recycled content in their packaging, there is more need than ever for partnerships and investments to increase recycling in the U.S.. We need to develop the infrastructure that makes recycling available to more Americans so we can recover the high-quality material that can be used in our packaging. Through pep+, our end-to-end strategic transformation, sustainability is at the heart of everything we do. As the exclusive investor in the Closed Loop Local Recycling Fund, we are actively driving the changes needed to transform the US recycling system and move towards a circular economy.

Jason Blake, chief sustainability officer and senior vice president at PepsiCo Beverages North America

Closed Loop Partners invites municipalities across the U.S., as well as local haulers, to reach out if they are interested in exploring a small-scale, modular MRF.

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