Launch 100 million Plastic Credit Bonds
Amsterdam, 1 Feb 2024– The World Bank has announced the launch of a unique seven-year bond, valued at $100 million, specifically targeted at reducing plastic waste.
This pioneering Plastic Waste Reduction-Linked Bond is designed to generate financial returns for investors through Plastic Waste Collection Credits, Recycling Credits, and Voluntary Carbon Units (VCU) derived from projects in Ghana, Indonesia and other countries around the World.
These projects focus on minimising plastic waste in vulnerable communities, thereby preventing it from contaminating nature and oceans.
The innovative bond was facilitated by Citi bank as the Lead Manager.
This novel financial instrument is part of the World Bank’s broader strategy to draw private investment into environmentally and socially beneficial projects.
By offering this bond, the World Bank is leveraging private capital to fund crucial initiatives aimed at enhancing local environments and community health while also creating job opportunities in often neglected areas.
World Bank Group Chief Financial Officer, emphasised the dual benefit of such bonds, aligning investor returns with positive developmental impacts. The bond’s principle is fully protected, with proceeds going towards the World Bank’s global sustainable development activities.
However, the projects in Ghana and Indonesia are managed independently by Plastic Collective UK. Investors in this bond will receive unique returns, including a portion of the profits from the sale of plastic and carbon credits generated by these projects.
Leaders from financial institutions like Citi, Velliv Pension, Skandia, Mackenzie Investments, T. Rowe Price, and Muzinich & Co. have expressed their support and pride in being part of this significant venture.
They highlight the bond’s role in addressing the critical global issue of plastic pollution, particularly in emerging markets, while also offering a sustainable and profitable investment opportunity.
By becoming an active member of environmental conservation efforts and participating in Plastic Credit programmes you would be able to learn how to reduce your plastic footprints.
Plastic credits signify the cleanup and recycling of 1,000’s of kilograms of plastic, effectively diminishing the volume of plastic pollution that contaminates our oceans and environment. Through these programmes, anyone can contribute to projects dedicated to extracting plastic from nature and safeguarding marine ecosystems and various habitats.