Closed Loop Partners and Brookfield partner to launch Circular Services in the United States
Closed Loop Partners (CLP) and Brookfield Renewable officially announce the establishment of Circular Services, a leading developer of circular economy and recycling infrastructure in the United States. Circular Services owns and operates municipal recycling facilities across the U.S. that enable municipalities and businesses to eliminate the billions of dollars spent annually on landfill disposal costs by ensuring that valuable commodities are recycled and reused in domestic supply chains.
Circular Services is majority owned and managed by Closed Loop Partners. Brookfield is committing up to $700M towards the growth of Circular Services via its Brookfield Global Transition Fund (“BGTF”), which is claimed to be the largest fund in the world focused on accelerating the transition to a net zero economy. Brookfield has invested an initial $200M in Circular Services, with an additional $500M committed to pursue growth opportunities. Closed Loop Partners is also including the Partnership Fund for New York City as an investor in Circular Services.
Circular Services will be the largest privately held recycling company in North America, including major 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, says the company. Circular Services owns or operates twelve facilities, several long-term municipal and commercial contracts, a total annual recycling capacity of over one million tons and a large pipeline of actionable growth opportunities.
Circular Services uses advanced technology to improve sortation, processing and reuse of valuable commodities, including consumer packaging, organics, textiles, electronics and more, for continual reuse in domestic supply chains. Its facilities increase the number of sustainable jobs in the communities they serve, promote local re-commerce and remanufacturing, and enable resilient communities.
“The United States has operated with a very linear system for product manufacturing and waste management for the past 75 years, costing municipalities and business billions of dollars in landfill disposal and damaging our environment,” said Ron Gonen, Founder and CEO of Closed Loop Partners. “Circular Services is building circular economy infrastructure that will serve the financial and environmental interests of cities, consumers, businesses. We are excited to accelerate the transition to the circular economy, an economic system that invests in the continual use of commodities, reducing the reliance on natural resource extraction and landfills.”
“We cannot create a net zero economy without significantly scaling the infrastructure required for a circular economy,” said Natalie Adomait, Managing Partner and Chief Investment Officer of BGTF. “Brookfield has developed a blueprint for transition investing, combining a prudent and patient approach to long-term infrastructure development with the emerging business models that are critical to lowering carbon emissions while generating attractive risk adjusted returns for our investors. We look forward to working with Closed Loop Partners, clear leaders in the circular economy sector, to support Circular Services to scale up its impact across the United States.”
