Key Findings from the Global Edition of the Plastics Circularity Investment Tracker

An estimated US$ 1.2 trillion is needed globally to reduce plastic leakage to the ocean by around 80% by 2040. However, there is still limited transparency around the financing of plastics circularity solutions and a lack of data or resources on investment activity to assess the investment opportunity. Governments, investors, multilateral organizations, and other stakeholders committed to solving the global plastic pollution crisis need to have a clear view of capital being deployed to ensure funding barriers to circularity can be addressed.

This report draws new insights from the global edition of the world-first Plastics Circularity Investment Tracker launched in November 2023, which tracks the scale of private investments driving a circular economy for plastics globally. The key findings from the Plastics Circularity Investment Tracker identify the solutions and regions receiving funding, as well as insights into investor and transaction landscapes, enabling decision-makers to better identify opportunities and where resources should be directed to scale solutions and unlock the full potential of a circular economy.

Key takeaways from this report include:

• Over US$ 160 billion from over 3,700 private capital deals in 91 countries was directed to the plastics circular economy between 2018 and the first six months of 2023, which equates to approximately US$ 29 billion per year.
• Nearly 90% of all investment over the time period went to North America and Europe, developed economies that offer a stable investment and supportive policy environment, despite the top 20 countries for ocean plastic leakage being emerging economies.
• Approximately 85% of investment went to recovery and recycling. In comparison, solutions focused on the reduction and avoidance of plastics, such as alternative materials, redesign, and refill/reuse solutions, received approximately US$ 20 billion – only 12% of all investments over the review period.
• Financing by banks and corporate investments were the top two sources of private capital, each contributing about 35% of total investments, followed by private equity with 25%.
• The top 10 deals, each over US$ 2 billion, collectively accounted for 30% of the deal value, indicating investor confidence in putting significant capital in this space.