SAN DIEGO, Calif.--(BUSINESS WIRE)--During the keynote presentation at the Municipal Waste Management Association (MWMA) Fall Summit, the environmental affiliate of The United States Conference of Mayors, it was announced that the Closed Loop Fund has opened the Fund’s application process for municipalities and private entities across the country.
As the environmental affiliate of The United States Conferences of Mayors, the announcement was delivered to an audience of public sector officials and private sector executives. The Closed Loop Fund plans to invest $100 million over the next five years to support the development of recycling infrastructure and services.
Recycling Infrastructure Financing
Municipalities across the country can now apply for zero interest loans to build recycling infrastructure for their communities. The zero interest loans are repaid from either landfill diversion savings or revenue generated from the sale of recyclable material. Companies that service municipalities may also apply – interest rates will be below market rates.
The founding members of the Closed Loop Fund include Coca-Cola, Colgate-Palmolive, Johnson & Johnson Family of Consumer Companies, Keurig Green Mountain, Inc., PepsiCo, Procter & Gamble, Unilever and Walmart as well as Goldman Sachs. By collaborating on the Fund, these companies are setting an example of inter- and cross-industry collaboration in the pursuit of positive social and environmental programs.
The success of the Fund will benefit both the public and private sector. Municipalities will be able divert recyclable material away from landfills and into the recycling stream reducing disposal costs, generating revenue, increasing local jobs in the recycling sector and reducing greenhouse gas [GHG] emissions. And companies will be able to incorporate more recycled content into their manufacturing supply chain, improving the environmental sustainability of products and preserving our natural resources.
The types of projects available for financing include curbside recycle carts, curbside organics carts, Recycling facilities (MRF’s), upgrades to MRF’s and anaerobic digesters, among additional infrastructure projects.
“There is a great disparity in recycling infrastructure and access across the country. A significant percentage of U.S. households don’t have access to adequate curbside recycling programs. There is tremendous economic value that can be unlocked by building this infrastructure and providing these solutions,” said Ron Gonen, Co-Founder of the Closed Loop Fund. “Both the public and private sectors should have a natural vested interest in increasing recycling rates, and by using the Closed Loop Fund, we can catalyze the benefits of recycling for both across the country."
The Closed Loop Fund leadership and partners will review applications on a quarterly basis, beginning October 29, 2014, and funding will be granted in 2015.
About the Closed Loop Fund
The Closed Loop Fund was created in early 2014 to provide municipalities with access to capital to build comprehensive recycling programs funded by a consortium of companies vested in finding a national solution to diverting waste from landfill into the recycling stream and back into the supply chain.
By catalyzing this investment, the Closed Loop Fund is assisting cities in transforming costly waste streams into a profit center that will save millions of dollars and help revitalize the recyclables market for companies, bringing to scale an effective, proven business model.