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. 

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

“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.,” Jason Blake, chief sustainability officer and senior vice president at PepsiCo Beverages North America, says. “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.”

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.