Investors include: The Closed Loop Fund is a social impact fund investing $100M to increase the recycling of products and packaging.

Transcription

1

2 Investors include: The Closed Loop Fund is a social impact fund investing $100M to increase the recycling of products and packaging.

3 We spend billions of dollars to throw away even more billions of dollars ARCTIC BRITISH COLUMBIA NEW BRUNSWICK QUEBEC PAPER: $1,294,625,417 GLASS: $97,325,060 ONTARIO HDPE: $2,854,896,000 PVC: $136,000,000 STEEL: $285,000,000 ALUMINUM: $1,446,228,571 MEXICO PET: $2,917,345,309 LDPE/LLDPE: $726,000,000 VIRGIN ISLANDS PP: $1,273,600,000 PS: $371,000,000 Cities spend $5+ billion annually to truck, rail, and barge waste to landfills This waste is $11b+ of material that could be used to make new packages and products. CLOSED LOOP FUND PAGE 3

4 The Closed Loop Fund unlocks recycling s value by providing 0% and low interest loans to cities and companies to build recycling infrastructure. We invest in replicable models that remove barriers to an effective and financially viable recycling system WE INVEST IN: CRITERIA: COLLECTION PROCESSING FINANCIALS REPORTING MATERIAL SCIENCE & PRODUCT DESIGN SCALABILITY TONNAGE CLOSED LOOP FUND PAGE 4

5 Nine System Bottlenecks Hindering Recycling 1) Recycling not included/ prioritized in packaging design process 2) PCR demand unclear/ lacking 3) Low awareness of what s recyclable / how to recycle Bold = Areas for CLF leadership Process into Product Inputs 9) Underdeveloped end markets for rigid plastics, film/flex, glass Sort Recyclables into Marketable Commodities Processing 7) Lack of innovation, unclear profitability of sorting technology for plastics, film, glass 8) No expansion of new materials accepted Collect More Recyclable Material 4. SS recycling, rigid plastics collection not expanding 5. Low confidence in low-income, underserved pop. ability to recycle 6. Lacking collection for organics, ewaste, and textiles (60% of CLOSED LOOP FUND PAGE 5 stream)

6 Plastic Recovery Facility (PRF) Baltimore, MD Investment: Create profitable market for hard-torecycle rigid plastics (#3-7) for the east coast. Reach: Communities within 500 miles including VA, PA, MD, DC, NY, MA, OH, NC Impact Over 10-years: 650,000 tons; 670,000 tons of GHG Total Project Cost: $11,000,000 Closed Loop Fund Portion: $2,000,000 Co-Investors: Canusa Hershman, QRS Co-investment unlocked: $9,000,000 Payback Schedule: 10-year maturity; first 2- years interest only, then 8-year amortization; $2.0m loan securitized by a first-lien on $2.5m of buildings and equipment CLOSED LOOP FUND PAGE 6

7 Portage County, OH (Kent to Akron) Investment: New Single Stream Recycling Carts and Trucks in Midwestern semi-rural community Reach: 25,000 households Impact over 10-years: 37,000 tons; 110,000 tons of GHG Total Project Cost: $3,100,000 Closed Loop Fund Portion: $3,100,000 Payback Schedule: 7-year fixed and guaranteed repayment from Portage County Solid Waste District. CLOSED LOOP FUND PAGE 7

8 Quad Cities, IA In: Upgrade local Material Recovery Facility (MRF), Trucks and Carts to single stream Location: Quad Cities, IA Reach: 150,000 households Impact over 10-years: 86,000 tons; 250,000 tons GHG Total Project Cost: $10,725,000 Closed Loop Fund Portion: $2,725,000 Co-Investors: Scott County, IA ; Iowa Department of Natural Resources Co-investment unlocked: $8,000,000 Payback Schedule: : 10-year fixed and guaranteed repayment from Scott County Solid Waste Commission CLOSED LOOP FUND PAGE 8

9 Innovation of Closed Loop Fund Model LARGE SCALE LOANS Zero interest loans in amount required to achieve measureable and systemic change drives proves the model and drives accountability. Revenue-backed loans are repaid via savings from increased landfill diversion and/or revenue from sale of commodities. SYSTEM CHANGE: Capital is pooled from consumer goods companies and retailers with a vested interests in increased recycling rates. Affect a system that no company can do alone. SCALABILITY Each project will be leveraged to inspire exponential increases in investment from other municipalities interested in self funding and replicating success of the a similar project in their location. UNLOCK 5x CO-INVESTMENT Fund will co-invest in select projects with private investors to enable projects to have an effective IRR for private investors, spurring and increasing in private investment. CLOSED LOOP FUND PAGE 9

10 Anticipated impact of the fund The Closed Loop Fund targets following impact could be achievable over the life of the Fund (10-years): SOCIAL 20,000 incremental local jobs vs. landfilling. ENVIRONMENTAL 50 million metric tons of GHG reduction; FINANCIAL TO MUNICIPALITIES $21.2B in avoided landfill tipping fees and revenue generated from selling diverted commodities. UNLOCK PUBLIC AND PRIVATE FUNDING NATIONALLY Create scalable models that prove financial value to funders across the country to help bring modern recycling programs to homes across the US. CLOSED LOOP FUND PAGE 10

11 The Closed Loop Fund is building local and national recycling infrastructure to create systemic value for the entire value chain REDUCE COST OF GOODS MEET CONSUMER DEMAND IMPROVE REGULATORY ENVIRONMENT TRANSPARENCY AND ACCOUNTABILITY Increase supply of recycled commodities available to source Protect supply from resource scarcity and price volatility by recovering material from waste stream. Meet consumer, societal demand for recyclable products Ensure customers have access to recycling where and when they need it Improve city resiliency Partner with cities on the solution to a looming challenge Revenue backed loans prove the business model and return capital Provide data of GHG reductions and money saved by municipalities CLOSED LOOP FUND PAGE 11

12