Closed Loop Partners & Brookfield Renewable partners to launch Circular Services

Closed Loop Partners (CLP) and Brookfield Renewable have officially announced the launch of Circular Services, a leading developer of circular economy and recycling infrastructure in the US. By guaranteeing that valuable commodities are recycled and reused in domestic supply chains, Circular Services, which owns and runs municipal recycling facilities across the U.S., enables municipalities and businesses to eliminate the billions of dollars spent annually on landfill disposal fees.

Closed Loop Partners owns and operates Circular Services to a large extent. Through its Brookfield Global Transition Fund (“BGTF”), the largest fund in the world dedicated to speeding the transition to a net zero economy, Brookfield is devoting up to $700M to the expansion of Circular Services. Circular Services received a $200 million initial investment from Brookfield, and a further $500 million has been committed to pursuing growth potential. The Partnership Fund for New York City is another investor in Circular Services, according to Closed Loop Partners.

With significant municipal and commercial contracts to recycle and reuse paper, metal, glass, plastic, organics, textiles, and electronics in New York, New Jersey, Pennsylvania, Arkansas, Florida, Texas, and Arizona, Circular Services will be the largest privately held recycling company in North America. The business has a total yearly recycling capacity of over one million tons, twelve facilities that it owns or manages, numerous long-term municipal and commercial contracts, and a significant number of development potential.

Utilizing cutting-edge technology, Circular Services is able to better sort, process, and reuse valuable commodities like consumer packaging, organics, textiles, electronics, and more for ongoing re-use in domestic supply chains. Its facilities encourage local re-commerce and remanufacturing, increase the amount of sustainable jobs in the communities they serve, and support resilient communities.

Ron Gonen, founder and CEO of Closed Loop Partners, said that the US has operated with a very linear system for product manufacturing and waste management for the past 75 years, costing municipalities and businesses billions of dollars in landfill disposal and harming our environment. Building circular economy infrastructure for communities, consumers, and enterprises will benefit their financial and environmental interests. They’re eager to hasten the shift to the circular economy, an economic model that promotes the ongoing consumption of goods while decreasing reliance on landfills and resource exploitation.

Natalie Adomait, Managing Partner and Chief Investment Officer of BGTF, said that without considerably scaling up the infrastructure needed for a circular economy, they could not build a net zero economy. In order to cut carbon emissions and produce appealing risk-adjusted returns for our investors, Brookfield has devised a blueprint for transition investing that combines a cautious and methodical approach to long-term infrastructure construction with developing business models. They are eager to collaborate with Closed Loop Partners, unquestionable pioneers in the circular economy space, to help Circular Services expand its influence across the US.

Maria Gotsch, President and CEO of the Partnership Fund for New York City, said that the operations of Circular Services would increase the capacity to provide cutting-edge solutions for recycling infrastructure and support more general sustainability goals in the area. The company’s presence in New York City will be a welcome boost to regional efforts to establish the city as a pioneer in the expanding circular economy as Circular Services assists more American cities in implementing a more circular approach to waste management. They’re thrilled to be an investor in the biggest privately held recycling company in the United States, which will have its headquarters in New York City.

Due to the urgency of climate concerns and rising landfill costs, zero-waste goals are rising to the top of the priority list in communities across North America. The Circularity Gap Reporting Initiative estimates that material handling and usage are responsible for 70% of all global greenhouse gas (GHG) emissions, making circular economy infrastructure a crucial component of the solution to the climate issue. Cities and businesses will be able to meet their sustainability goals by reducing costs associated with disposing of products and packaging and by increasing access to recycling and reuse services.