Online retail giant, Amazon has disclosed that it will invest $10 million in a corporate-backed fund to increase recycling rates in the United States.
Amazon will be making this investment in Closed Loop Fund, a 4-year-old venture that offers low-cost loans to municipalities and companies working on recycling projects.
The company’s investment in the Closed Loop Fund, will increase availability of curbside recycling for 3 million homes.
It will also divert about 1 million tons of recyclable material from landfills into recycling over the next decade.
Amazon will pay $2 million into the fund each year through 2022, and have its contribution repaid over five years starting from 2023.
Kara Hurst, Amazon’s sustainability chief said, “It’s a really exciting model because it’s a lot of what’s needed to invest and make recycling viable for municipalities.”
According to her, Amazon likes this structure as they have a track record and the capital to work is already available.
The fund has so far committed $71 million to six municipalities, 10 private companies and one nonprofit.
Some companies interested in the initiative include Walmart, PepsiCo and Coca-Cola, and Procter & Gamble.
These companies are interested in diverting valuable, reusable raw materials away from landfills and back into their own supply chains.