Indorama Ventures obtains a blue loan to fight against marine plastic pollution
For the first time, a plastic resin manufacturer has become the beneficiary of a “blue loan”, a program of the International Finance Corp. which supports sustainability efforts focused on the world’s oceans.
Indorama Ventures Global Services Ltd., a subsidiary of Thai PET resin manufacturer Indorama Ventures Ltd. (IVL) has secured $ 300 million in financing, organized by IFC, which the company will use to invest in renewable energy and resource efficiency. projects as well as increasing its recycling capacity in Thailand, Indonesia, the Philippines, India and Brazil – countries that struggle with poorly managed waste and serious plastic waste in the environment.
This is IFC’s first blue loan focused exclusively on tackling marine plastic pollution.
As a member of the World Bank Group and the world’s largest private sector-focused development institution in emerging markets, IFC has put in place a package consisting of a $ 150 million senior loan of IFC and parallel loans of $ 150 million from the Asian Development Bank and Deutsche Investitions-und Entwicklungsgesellschaft.
A blue loan is an instrument by which the funds raised are certified and monitored exclusively for projects that support a blue economy. sustainable use of ocean resources for economic growth, improved livelihoods and jobs, and healthy ocean ecosystems.
Indorama targets a minimum of 750,000 metric tonnes of recycled PET globally by 2025. To that end, the company is building the recycling infrastructure needed to divert waste from the marine environment, said Yashovardhan Lohia, director of sustainability at IVL.
A key feature of the investment is to create value from waste by promoting bottle-to-bottle recycling with higher added value.
“By recycling post-consumer PET bottles into new bottles, we give waste an economic value. This leads to improvements in waste collection systems, which means less waste and cleaner oceans, ”Lohia said.
The loan will also allow IVL to install more solar panels at its facilities in Thailand and India, and more sites will follow, while securing more renewable energy for its manufacturing facilities. IVL is working on a waste heat recovery (WHR) project at its PET and fiber manufacturing plant in Indonesia, where energy efficiency measures are expected to reduce the facility’s carbon footprint by up to 25 percent, and plans to develop similar projects, in Brazil and other manufacturing plants to achieve its corporate goals.