The Closed Loop Fund has opened the application process for municipalities and private entities across the country to acquire zero-interest loans to develop recycling infrastructure and services. The Closed Loop Fund plans to invest $100 million over the next five years to support this development.
Municipalities across the country can apply for the loans to build recycling infrastructure for their communities. The zero-interest loans are repaid from either landfill diversion savings or revenue generated from the sale of recyclable material. Companies that service municipalities may also apply; interest rates will be below market rates.
The founding members of the Closed Loop Fund include Coca-Cola, Colgate-Palmolive, Johnson & Johnson Family of Consumer Companies, Keurig Green Mountain, Inc., PepsiCo, Procter & Gamble, Unilever, and Walmart as well as Goldman Sachs.
According to the group, the success of the fund will benefit both the public and private sector. Municipalities will be able divert recyclable material away from landfills and into the recycling stream, reducing disposal costs, generating revenue, increasing local jobs in the recycling sector, and reducing greenhouse gas emissions. And companies will be able to incorporate more recycled content into their manufacturing supply chain, improving the environmental sustainability of products and preserving our natural resources.
The types of projects available for financing include curbside recycle carts, curbside organics carts, municipal recycling facilities (MRFs), upgrades to MRFs, and anaerobic digesters, among additional infrastructure projects.
“There is a great disparity in recycling infrastructure and access across the country. A significant percentage of U.S. households don’t have access to adequate curbside recycling programs. There is tremendous economic value that can be unlocked by building this infrastructure and providing these solutions,” says Ron Gonen, Co-Founder of the Closed Loop Fund. “Both the public and private sectors should have a natural vested interest in increasing recycling rates, and by using the Closed Loop Fund, we can catalyze the benefits of recycling for both across the country."
The Closed Loop Fund leadership and partners will review applications (apply online) on a quarterly basis, beginning October 29, 2014, and funding will be granted in 2015.
