World Bank Bond Targets Plastic Waste Reduction

The World Bank has priced a seven-year US$100 million principal-protected plastic waste reduction-linked bond, with goals to support projects managed by Plastic Collective UK across Ghana and Indonesia for the reduction and recycling of plastic waste. The bond will provide investors with financial returns linked to plastic and carbon credits issued on the Verra Registry – a carbon credit registry that manages the Verified Carbon Standard – and generated through supported projects. Investors are providing US$14 million in upfront financing to expand capacity at existing facilities, including installing food-grade recycling equipment. “Given the huge needs for development, channelling private capital to support development challenges has been a fundamental part of our work,” said Anshula Kent, Chief Financial Officer at the World Bank. “Outcome bonds like [this one] align incentives so that investors benefit financially when positive development outcomes are achieved, creating a win-win with the local communities and ecosystems that benefit from less pollution, and we will continue issuing them.”

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