IFC Launches Initiative to Boost Plastic Circular Economy in Latin America
The initiative will support companies in the plastics value chain—including major plastic users, converters and manufacturers—to turn sustainability ambitions into practical investments.
- Country:
- Brazil
The International Finance Corporation (IFC), a member of the World Bank Group, has launched a regional initiative aimed at accelerating investment in plastic circularity projects across Brazil and Latin America and the Caribbean.
The programme is being implemented in partnership with BlackForest Solutions GmbH and ABIPLAST, the Brazilian plastics industry association, and seeks to identify finance-ready opportunities that reduce reliance on virgin plastic and expand recycling systems across the region.
Driving Investment in Circular Plastics
The initiative will support companies in the plastics value chain—including major plastic users, converters and manufacturers—to turn sustainability ambitions into practical investments.
Through the programme, businesses will receive support to:
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Measure their virgin and fossil-based plastic footprints
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Identify plastic reduction and recycling opportunities
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Develop investment-ready circular economy projects
IFC said the effort is designed to transform plastic circularity strategies into real projects capable of attracting financing and scaling across the region.
Circular Economy Offers Major Economic Opportunity
The circular economy—an economic model that reduces waste and keeps materials in use for longer—represents a multi-trillion-dollar global opportunity.
Globally, between 121 million and 142 million people are already employed in circular economy activities across 177 countries, representing about 5–5.8 percent of total employment.
Unlike the traditional "take-make-waste" production model, circular systems prioritize reuse, recycling, resource efficiency and environmental regeneration.
Strengthening circular ecosystems in Latin America will be crucial for reducing single-use plastics and cutting reliance on fossil-fuel-based plastic resins, IFC said.
Brazil at the Centre of Regional Plastics Industry
Brazil plays a central role in the region's plastics industry.
According to ABIPLAST, the country leads plastic production in Latin America and the Caribbean, where total output reaches 15.7 million tonnes annually, representing 3.8 percent of global plastic production.
Recent progress in recycling has been significant.
In 2024, more than 20 percent of plastic waste from Brazil's 8,000 tonnes of plastic consumption was reused as raw material—an 8 percent increase compared with the previous year.
Recycled materials are expected to continue growing, particularly in the post-consumer resin market, which converts used plastics into new industrial raw materials.
Four-Stage Implementation Plan
The new IFC initiative will be implemented through several stages aimed at developing concrete investment opportunities.
Key steps include:
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Mapping regional plastic demand and identifying enabling policy and market conditions
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Developing company-level tools to measure plastic use and model reduction pathways
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Piloting circularity roadmaps with selected companies
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Identifying credible circular economy investments to feed IFC's financing pipeline
The programme aims to build a stronger ecosystem for sustainable plastics production and recycling across the region.
Expanding IFC's Circular Economy Financing
IFC has already invested heavily in circular economy projects across emerging markets.
To date, the institution has committed more than $1.9 billion and mobilized nearly $500 million in additional private investment to support circular solutions across product life cycles.
These investments support companies that:
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Reduce consumption of natural resources
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Extend the lifespan of materials and products
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Design production systems that minimise waste generation
New Global Guidelines for Circular Finance
The initiative builds on IFC's broader effort to expand financing for circular economy projects.
In May 2025, IFC introduced the Harmonized Circular Economy Finance Guidelines at the World Circular Economy Forum in Brazil.
The guidelines are designed to help investors, financial institutions and companies identify and quantify circular economy investment opportunities, making it easier to channel capital into sustainable projects.
IFC said the new regional initiative will help transform the plastics sector in Latin America by combining private-sector innovation, policy support and investment capital to scale circular solutions.
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