The Closed Loop Fund has opened its application process for municipalities and private entities across the country. It plans to invest $100 million over the next five years to support the development of recycling infrastructure and services.
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, Keurig Green Mountain, PepsiCo, Procter & Gamble, Unilever, Walmart and Goldman Sachs. It was launched earlier this year at Walmart’s inaugural Sustainable Product Expo to provide municipalities with access to capital to build recycling programs.
The success of the Fund will benefit both the public and private sector, the companies say. 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. Companies will be able to incorporate more recycled content into their manufacturing supply chain, improving the environmental sustainability of products and preserving natural resources.
The types of projects available for financing include curbside recycle carts, curbside organics carts, Recycling facilities (MRF’s), upgrades to MRF’s and anaerobic digesters, among additional infrastructure projects.
The Closed Loop Fund leadership and partners will review applications on a quarterly basis, beginning Oct. 29, and funding will be granted in 2015.