Circularity Plus
IFC’s Circularity Plus platform is a one-stop shop that supports private sector waste management companies and municipalities in emerging markets with customized investment, advisory and networking solutions to harness the resource value in waste and promote circular, sustainable waste management practices.
About IFC
- Largest multilateral source of debt and equity financing for the private sector in developing countries
- AAA-rated by S&P and Moody’s
- Loans, equity, quasi-equity, local currency and risk management products, capital markets access, and mobilization
- Advisory services to help develop priority projects, structure and tender PPPs, and improve financial management
- Social, environmental, and corporate governance standards and risk mitigation
- Expertise in structuring financial instruments such as sustainability-linked, green, and blue bonds and loans, as well as mobilizing blended finance
While waste management tends to take a back seat when discussing climate change and economic development on the global agenda, there is a growing awareness that sustainable waste management practices – with a transition to the circular economy – reduce emissions and positively impact the economy.
Nuru Lama, global lead of Waste & Circularity, International Finance Corporation (IFC)
Nearly half of the waste in developing countries ends up in open dumps.
“Regulation is key. Both the public and private sectors may have the best of intentions, but from an investment perspective, there must be clear regulations which are seriously enforced to tackle waste management,” says Lama. The trend of stronger regulation is positive when it comes to developing countries, as they climb up the income ladder.
While climate change has dominated international discourse, it has raised the profile of waste management. Each party to the Paris Agreement is required to establish a Nationally Determined Contribution (NDC), which is a climate action plan to cut emissions and adapt to climate impacts. For many countries, waste management is part of these NDCs. “This has certainly helped to raise the profile of waste and encourage better policy and regulation,” maintains Lama. Corporations are also becoming more conscious about sustainability, focusing on recyclable packaging and recycled content in their products. Furthermore, there are Extended Producer Responsibility (EPR) regulations that make industries significantly more responsible for the recovery and recycling costs for certain identified products that they manufacture. “EPRs are injecting additional revenue into the waste management ecosystem, making waste collection, segregation and recycling more viable, this is also driving greater private sector interest,” explains Lama. The carbon credit market is also providing an additional boost to the waste sector as waste management companies increasingly tap into this market to monetise carbon emissions reduction from landfill gas capture and energy recovery technologies. Circulatory Plus Platform IFC is increasing its investments and advisory services in the waste sector. “We are working with municipalities and private sector clients to build, scale, and grow innovative, market-oriented, long-term solutions to waste infrastructure challenges. We share knowledge about new technologies in the markets, regulation models and best practices across the entire waste value chain to encourage a more circular approach.” A key IFC initiative is the Circulatory Plus Platform for the waste management sector, which is a focused one-stop approach that offers clients advisory, investment and networking solutions throughout the waste management value chain. IFC is supporting developing countries in shifting towards a more circular economy and is currently operating in countries with more robust regulation like Brazil, India and China. IFC is scaling up engagement in other markets, including Africa where it is looking at recycling opportunities in plastics and metals as well as supporting the transition to more sanitary landfills and waste-to-energy projects. “Waste management can have a massive impact on the environment, wellbeing and health of society as well as the economy. This sector does not require trillions of dollars to transition to a more sustainable one. It needs strong regulation and public support. This is a fast-developing industry, using technologies, and solutions that have already been commercially proven. There is a lot that can be done in Africa to improve waste services. There is a lot of growth potential where IFC can make a meaningful contribution,” concludes Lama.
Developing countries need help in leveraging finances and funds to meet thier SDG goals
