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InvestEU: EIF invests €50 million to support circular plastics

GO CIRCULAR

InvestEU: EIF invests €50 million to support circular plastics

The EIF has invested €50 million in Infinity Recycling's Circular Plastics Fund to accelerate circularity in the plastics industry.

Source: Infinity-Recycling

With a target size of €150 million, the fund will bolster the industrial and commercial scale-up of companies enabling advanced recycling of plastics.

This agreement was made possible with the support of the InvestEU programme, which aims to unlock over €372 billion in additional investment from 2021 to 2027.

The European Investment Fund (EIF) has signed a €50 million participation in Infinity Recycling's Circular Plastics Fund I SCSp, a European impact fund that invests in companies developing new processes for the advanced recycling of plastics. The fund supports companies with scalable technologies that need financing for the industrial and commercial scale-up of their operations. The Circular Plastics Fund has a target size of €150 million, a third of which is covered by the EIF's commitment. The transaction is supported by the InvestEU programme, which aims to mobilise over €372 billion in additional investment for EU policy priorities over the 2021-27 period, as well as by the European Investment Bank.READ MORE 

As traditional (mechanical) recycling causes plastics to lose their initial properties (safety for food use, strength, or elasticity), the Circular Plastics Fund supports advanced recycling technologies. These include chemical processes that enable the full recycling of end-of-life plastic waste, producing new plastics with virgin-equivalent properties and reintroducing them into the existing value chain. The fund can thus play a role in enabling a fully circular plastics industry.

The proportion of plastic packaging that is recycled is still far too low. Our climate change and environmental sustainability challenge is a combination of many different issues, and the excessive use of plastics is a major factor. A lot can be achieved by changing our habits, but innovation is key to finding new ways of dealing with structural plastic use and making sure we use every piece of plastic as many times as possible. With the support of the InvestEU programme, we are very happy to be supporting this kind of innovation.

Marjut Falkstedt, Chief Executive, EIF

For most Europeans recycling is already an integral part of their daily lives. Establishing a true circular economy also requires industrial solutions that allow plastics to be recycled fully, efficiently and many times over. Today's funding through InvestEU will help innovative European companies advance a circular plastics industry, acting as a booster for the EU's green transition.

Virginijus Sinkevičius, Commissioner for Environment, Oceans and Fisheries

Demand for the use of recycled commodities in plastics production is on the rise, but only a few advanced plastics recycling technologies have been able to achieve commercial scale. While these technologies are often viable, many companies lack the specialised financial structuring and business development skills required to scale up production, source high-quality inputs and establish supply agreements with offtake counterparties. We are thrilled by this investment from the EIF, which pushes our Circular Plastics Fund beyond the €105 million threshold and empowers us to accelerate circularity in the plastics industry through an impact-driven strategy.

Jeroen Kelder, Managing Partner at Infinity Recycling

The fund is established in Luxembourg and is managed by Rotterdam-based fund manager Infinity Recycling BV. The InvestEU support for the EIF's participation in the fund falls under the initiative's thematic “Joint Equity Product” and “Climate & Environmental Sub-Product” windows.

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