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Environmental organisation Planet Ark has partnered with Sydney-headquartered Boston Global to launch the Circular Future Fund (CFF), which it claims has the potential over the next five years to raise up to $1 billion for investments that address climate change challenges ranging from toxic pollution mitigation to regenerative agriculture.
With 2024 shaping up to be the first calendar year of average global temperatures exceeding baseline rates by 1.5°C, the pressure is on to rein in global greenhouse gas emissions.
While research by the Ellen MacArthur Foundation shows that 55 per cent of the journey to net zero greenhouse gas emissions will be achieved by transitioning our energy systems to renewable sources, the remaining 45 per cent involves moving from the linear 'take, make, dispose' model of resource use to a circular approach.
In Australia, this second part of the equation will be particularly challenging given the country's circularity rate - which measures the efficiency of how resources are reused and recycled - sits at half the global average at 4 per cent, according to the CSIRO.
The CFF will target the circular economy transition across numerous thematics aimed at solving the triple planetary crisis of climate change, biodiversity loss, and toxic pollution.
Three leading target areas will include recycling and waste management, renewable resources, and designs that make products longer-lasting, repairable and recyclable.
By targeting these high-impact sectors, the CFF aims to facilitate Australia's leadership in circular practices, encouraging innovation and supporting the next generation of sustainable businesses.
Planet Ark CEO Rebecca Gilling believes the fund could have a transformative impact on circularity in Australia.
"This partnership with Boston Global and the launch of the Australian Circular Future Fund is a pivotal step in our mission to transform Australia’s economy," says Gilling.
"We believe this fund will be instrumental in driving the circular transition and setting new benchmarks for sustainability."
Boston Global’s funds management business chairperson Leigh Higgins highlights the fund’s potential to shape the future of Australia’s economic landscape.
"By investing in circular innovations, we are advancing a sustainable and prosperous future while enabling the business sector to harness the opportunities the circular economy presents," Higgins says.
The CFF is open to both investors and innovators who share the vision of a circular economy and a resilient future for the Australian economy.
The partners claim investors will have the opportunity to support projects that deliver both strong financial returns and environmental benefits, while innovators will gain access to essential funding, guidance, and resources to bring their ideas to market.
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