IDB Lab to combat marine pollution in LAC region
THE innovation lab for the Inter-American Development Bank (IDB) Group, IDB Lab, has announced a US$4-million investment commitment in support of innovative solutions to tackle the growing problem of plastic waste ending up in the ocean and waterways of Latin America and the Caribbean (LAC).
With an additional technical cooperation grant of US$500,000, the circular economy investment will be combined with a capacity development programme specifically for the LAC region, which would enhance the building of a potential investment pipeline through the support of regional innovation ecosystem actors.
The investment will be managed by Circulate Capital, an investment management firm that finances innovations, companies, and infrastructure that scale solutions to the plastic waste and climate change crises.
The strategy will be focused on investing primarily in early stage start-ups and small and medium-size enterprises (SMEs), promoting a plastic circular economy and catalysing investment from institutional investors at scale.
The target, IDB Lab indicated, is to fund systemic solutions that rethink and manage waste.
“The idea is to invest capital into companies that develop scalable solutions from innovative materials, reducing waste to waste management infrastructure such as collection, sorting, processing, recycling and manufacturing,” it said.
According to IDB Lab, the LAC region generated 12 per cent of the total global waste, just below East Asia and the Pacific, with 10 of the top 30 global plastic polluters per capita hailing from the Caribbean region.
It added that there are an estimated 150 million tons of plastic in the ocean today, growing by approximately 8 to 11 million tons a year, which is equivalent to a garbage truck of plastic unloading in the sea every minute, the lab indicated.
“A significant amount of plastic waste pollution leaks from the LAC region due to a lack of circular recycling systems, capital, and technical assistance in the sector. IDB Lab is honoured to be a pioneer in committing capital to finance innovations that help to reduce plastic waste in the region through early stage start-ups and SMEs,” said Irene Arias-Hofman, CEO of IDB Lab.
