Scaling Innovations for Plastic Circularity with Investment in ASEAN

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Table of Contents

• _heading=h.30j0zll 9
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• Executive Summary 9
• Acknowledgements 8
• Chapter 1. 19
• Introduction 19
• 1.1. Background and Objectives 19
• 1.2. Plastic Pollution in the ASEAN Region 21
• 1.3. Innovation and Plastic Waste Management 22
• 1.4. Methodology 23
• 1.4.1 Limitations of the Methodology 24
• 1.5. Stakeholder Consultations 25
• Chapter 2. 27
• Overview of the Waste Management Ecosystem and the Key Plastic Waste Types in the Six AMS 27
• 2.1. Evaluation Parameters for Waste Management, Recycling, and Plastic Circularity in the Six AMS 27
• 2.2. The Country-specific Status of SWM, Recycling, and Plastic Circularity in the Six AMS 28
• 2.3. Hurdles to Overcome to Achieve Innovations’ Growth and Scale 34
• 2.3.1. Lack of Policy and Financial Incentives 35
• 2.3.2. Lack of Organizational Capacity 36
• 2.3.3. Limited Access to Capital 36
• 2.4. Innovation Support to Address the Gaps 37
• Chapter 3. 41
• The Innovation Landscape for Plastic Circularity 41
• 3.1. Introduction to Innovations in Plastic Circularity in the ASEAN Region 41
• 3.2. Identifying and Assessing the Innovation Ecosystem 43
• 3.3. Innovations in ASEAN and other select Areas 45
• 3.3.1. Upstream Stage 45
• 3.3.2. Midstream Stage 46
• 3.3.3. Downstream Stage 47
• 3.3.4. Cross-cutting Stage 48
• 3.4. Evaluating and Selecting Innovations for Investment 49
• Chapter 4. 53
• Policy Options to Stimulate Innovations to Advance Plastic Circularity 53
• 4.1. Overview of the Role of Policies in Driving Innovation and Investment 53
• 4.2. Policy Instruments for Triggering Plastic Innovation 57
• 4.3. International Policy Triggers for Plastic Innovation 62
• Chapter 5. 67
• Investment Needs and Opportunities in Innovations for Plastic Circularity in the Six AMS 67
• 5.1 Development Profile of Innovations in the Plastic Circularity Ecosystem in the Six AMS 68
• 5.2 Overview of Investments in Innovations in Waste Management, Recycling, and Plastic Circularity in the Six AMS (2018–2022) 70
• Chapter 6. 73
• Creating the Enabling Environment and Markets to Improve Investments in Plastic Circularity Innovations 73
• 6.1 Scaling Innovations by Stage 75
• 6.1.1. Value Chain Stage 75
• 6.1.2. SWM Ecosystem Type 76
• 6.2 Supportive Policies and Financial Incentives for Plastic Circularity Innovations 80
• 6.2.1. Policy Gaps and Coordination to Address Institutional Failures 80
• 6.2.2. Financial Incentives to Address Market Failures 82
• 6.2.3. Creating Market Demand 84
• 6.3 Direct Support to Plastic Circularity Innovators 86
• 6.3.1. Building Organizational Capacity 86
• 6.3.2. Access to Financing 89
• 6.4 Regional Cooperation 91
• 6.5 Conclusion 92
• Appendices 93
• List of Abbreviations 93
• Appendix 1. Country Profiles for the Six AMS 96
• Appendix 2. Top 10 plastic circularity transaction by deal value in the Six AMS (2018-9M 2022) 98
• Appendix 3. Stakeholder Consultations 99
• Appendix 4. Key Types and Sources of Capital in the ASEAN Region 103
• Appendix 5. Selected Financing Criteria for Plastic Circularity Investments 107
• Appendix 6. Selected Venture Debt Providers and Their Products 108
• Appendix 7. Perceived Barriers and Supportive Policies to Drive the Development of Plastic Circularity in the Six AMS 109
• Appendix 8. Summary of Selected SWM and SUP Policies 111
• Bibliography 112
• Figure ES.1. Plastic Waste Management Innovation Landscape in the ASEAN Region 13
• Figure 1. Losses of Recyclable Material Value in Four ASEAN Member States 20
• Figure 2. Types of Plastic Pollution in the ASEAN Region 21
• Figure 3. Solid Waste Management Framework to Support Innovation 22
• Figure 4. Elements of Plastic Circularity (Plastic Waste Management within Solid Waste Management) 28
• Figure 5. Key Elements of Plastic Circularity 29
• Figure 6. Categorization of Innovations in the Plastic Value Chain 42
• Figure 7. Plastic Waste Management Innovation Landscape in the ASEAN Region 51
• Table ES.1. Transitioning SWM from a Nascent to an Emerging Ecosystem in the six AMS 14
• Table ES.2. Prioritization of innovation across the plastic value chain in the six AMS 15
• Table 1. Nascent Ecosystem: Cambodia, Indonesia, and the Philippines 30
• Table 2. Emerging Ecosystem: Malaysia, Thailand, and Vietnam 32
• Table 3. Gaps in Solid Waste Management and their Impacts on Plastic Waste Management 38
• Table 4. Thematic Innovations to Address Gaps to Improve Plastic Waste Management 39
• Table 5. Readiness of Innovations by Stage 51
• Table 6. Extended Producer Responsibility Scheme 58
• Table 7. Potential Sources of Capital for Early-stage Companies 69
• Table 8. Investments in Plastic Waste Management, Recycling, and Circularity in the Six AMS, by Stage (January 2018–September 2022) 71
• Table 9. Number and Value of Plastic Circularity Investments in the Six AMS, by Country (January 2018–September 2022) 71
• Table 10. A Selection of Innovative Plastic Circularity Finance Offerings in Emerging Markets (2020–2022) 72
• Table 11. Prioritization of Innovation Across the Plastic Value Chain in the Six AMS 78
• Table 12. Prioritization of Innovations Based on a Country’s Stage in the Plastic Value Chain and its Typology 79
• Table 13. Transitioning SWM Innovations from a Nascent to an Emerging Ecosystem in the Six AMS 82
• Table 14. Potential Types and Sources of Capital for Innovations Across the Plastic Value Chain 90
• Table 15. Recommendations and Prioritization for Limited Access to Capital 90
• Box 1. Stakeholder Consultations during the 7th International Marine Debris Conference (7IMDC) 25
• Box 2. An Alternative Material Innovation Case – Ecovative 45
• Box 3. Redesign Innovation Case – Beverage Industry Players (Lotte, Coca Cola & Evian) 46
• Box 4. Refill/Reuse Innovation Case – Loop 47
• Box 5. Recycling Innovation Case – Prevented Ocean Plastic (POP) South Asia 48
• Box 6. Operational Platform Innovation Case – Rubicon 49
• Box 7. Using Platforms to Improve Collection Efficiencies 50
• Box 8. IFC Performance Standards on Environmental and Social Sustainability 55
• Box 9. Case study: The Role of Government in Thailand’s Entrepreneurial Ecosystem 61
• Box 10. Island Solutions 77