PepsiCo Beverages North America (PBNA) has joined forces with circular economy investor Closed Loop Partners to create a US$35m project for the funding of local recycling facilities across the US. The 'Closed Loop Local Recycling Fund' aims to establish new small-scale modular recycling systems in areas that currently have no or limited access to recycling, reducing waste and unlocking a new source of high-quality recycled plastic (rPET). Closed Loop Partners will use the funding to establish small-scale Materials Recovery Facilities (MRFs), which are less capital-intensive than traditional large-scale recycling facilities, and reduce the need to transport materials to larger MRFs outside the local area. Each MRF will have the capacity to recycle at least 8,000 tons of materials a year, including keeping 400 tons of rPET in circulation. The initiative is expected to yield higher-quality rPET, as well as reduce the costs and emissions associated with transportation over longer distances. “As companies – including PepsiCo – set ambitious goals to use more recycled content in their packaging, there is more need than ever for partnerships and investments to increase recycling in the US,” said PBNA chief sustainability officer Jason Blake. The initiative aims to support PepsiCo’s 'pep+' sustainable packaging goals, including a target to cut virgin plastic from non-renewable sources across the company by 50% by 2030. What is PepsiCo hoping for from ‘pep+’? - Click here for commentary from Inside Packaging