Brookfield pledges up to US$700-million to invest in U.S. recycling companies
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Brookfield Asset Management Inc.’s renewables affiliate is committing to invest up to US$700-million in a newly formed U.S. recycling business, targeting recycled materials as part of the push to cut global carbon emissions.
Brookfield Renewable Partners LP has invested an initial US$200-million for a minority stake in Circular Services, a new company that is majority owned and managed by New York-based investment firm Closed Loop Partners. Brookfield Renewable is also committing to invest another US$500-million to help Circular Services grow.
The investment is being made through the US$15-billion Brookfield Global Transition Fund, which is co-led by vice chair and former Bank of Canada governor Mark Carney and Brookfield Renewable CEO Connor Teskey. It is Brookfield’s first fund focused on investments intended to help speed the transition to a net-zero economy.
Circular Services owns and operates a dozen municipal recycling facilities in the United States. And it has large municipal and commercial contracts to recycle paper, metal, glass, plastic, organics, textiles and electronics in seven states, from New York to Texas.
In a statement, Closed Loop and Brookfield said Circular Services “will be the largest privately held recycling company in North America.”
“We cannot create a net zero economy without significantly scaling the infrastructure required for a circular economy,” said Natalie Adomait, chief investment officer for the Brookfield Global Transition Fund, in a news release.
With technology to improve sorting, processing and reuse of materials such as consumer packaging and electronics, the company’s aim is to reduce municipalities’ landfill costs and boost use of recycled goods. It is also a pitch to cities and businesses looking for help meeting sustainability goals.
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