GGGI Launches Project To Boost Plastics Recycling And Reuse In The Mekong Region

The Global Green Growth Institute (GGGI), in partnership with the Thailand Environment Institute (TEI), launched a new initiative to mobilize financing for plastic waste management infrastructure in the Lower Mekong region. The area is where growing mismanaged plastic waste adversely affects ecosystems, livelihoods, and human health.

Entitled ‘Bridging the Financing Gap for Plastics Circularity Infrastructure through Bankable Projects, Policy, and Knowledge Sharing’, the USD1-million initiative is funded by the Mekong – Republic of Korea Cooperation Fund (MKCF).

Despite important steps taken by governments, the private sector, and other key players in the region to reduce plastic leakage and promote the circular economy, businesses face significant challenges. Those seeking to build and operate waste collection hubs, sorting and transfer stations, material recovery facilities, recycling plants, and innovative reuse systems often contend with risks due to the lack of a functioning market. This makes mobilizing financing a daunting task for them.

Over the next two years, the initiative will work with governments, financiers, and project developers in Cambodia, Lao PDR, Thailand, and Viet Nam, to address financing challenges and catalyze a functioning market for recycled plastic waste, targeting USD 50 million in mobilized investment.

As part of the initiative, two plastic waste management projects in Thailand will receive GGGI’s technical support to improve their bankability and attract investors. The project will also use lessons learned from these pilots, combined with international best practices, to develop and propose policy recommendations for targeted municipalities in Thailand and to facilitate regional knowledge-sharing activities with government officials, financiers, and project developers.

The launch event gathered 45 representatives from government agencies, private sector associations, and financial institutions.

Wijarn Simachaya, President of the Thailand Environment Institute (TEI), said: “TEI has played a key role in driving multi-stakeholder cooperation, conducting academic research to reduce single-use plastics, preparing standards for responsible plastic waste trade as well as sorted and recycled plastics, and applying the principles of the circular economy at the local level. We stand ready to support efforts fostering the smart use of plastics and build sustainability for Thailand and the region.”

Madhurjya Kumar Dutta, Director of the Mekong – Republic of Korea Cooperation Fund, said: “Through collaboration and innovative financing mechanisms, we can create sustainable projects that not only address the urgent issue of plastic waste but also pave the way for a circular economy in the Mekong region. This project, led by GGGI, is a critical step towards building a resilient future for our communities and ecosystems.”

Jisu Min, GGGI Country Representative of Thailand and ASEAN Program Development Lead, said: “If policies, technology, and attitudes of consumers collectively support a price for recycled plastic that offers an acceptable risk-adjusted return, the financing gap may no longer be a significant barrier”.