Will the Closed Loop Fund assist municipalities in increasing recycling rates? The Closed Loop Fund, launched last year, will invest $100 million over the next five years in 0% interest loans to municipalities to develop local recycling infrastructure. The Fund will link companies that want more recycled material in their supply chains to municipalities that need low-cost capital to invest in recycling infrastructure, enabling consumer access to recycling where and when it is needed. The Closed Loop Fund will provide investment for the following types of projects: carts (e.g., single stream), trucks (for collection of recycling and organics), Material Recovery Facilities (MRF), upgrades to MRF’s, secondary processing facilities, and emerging technologies. I think the Closed Loop Fund is a bold and innovative step to elevating industry-wide collaboration and may succeed in driving the market if complementary regulations are in place. For businesses to make investments in domestic recycling infrastructure, feedstock security must be in place. But buyers of scrap plastics, for example, lack a reliable domestic market consistent in volume and quality, and collectors, producers and recyclers of scrap plastics can’t generate sufficient value to cover their costs.
What do you think of the Closed Loop Fund and its ability to develop new recycling markets?
Michael Simpson P.E
Acting Principal Environmental Engineer
Industrial Waste Management Division