Capturing enthusiasm for Green Investment
• New mechanisms to stimulate Investment in Recycling
• National consultation on barriers to investment
Recycling and waste management are one of the key challenges facing the Government and Industry in the UK. A fundamental problem has been the lack of end markets for materials due to low investment in product development and reprocessing capacity. WRAP has been set up to encourage the development of markets for recycled goods. WRAP is aiming to bolster market confidence in recycling, and crucially to find ways to improve the economics of recycling. Among WRAP's targets is levering a minimum of an additional £10m a year into the recycling sector.
Recycling businesses are often perceived as unattractive to the financial community due a lack of market information, the fact specialised working capital and assets have low collateral value and because they often provide returns over a longer term than other sectors.
WRAP has today launched a major new Financial Mechanisms programme that will act to overcome some of these barriers. WRAP is offering a new service to Green businesses that will help them find finance. "Our job is to boost levels of recycling and this is a very important component of the services that we offer" said Mr Vic Cocker CBE, Chairman.
In the initial phase of its Financial Mechanisms Programme, WRAP is creating a Business Development Service to support recycling businesses, particularly small and medium sized enterprises, in putting together strong investment proposals and identifying the best sources of capital.
WRAP intends the Service to provide very 'real' access to sources of finance and provide a marriage service for funders and green businesses. "There is plenty of general advice and literature available, what we are offering is the opportunity to understand your requirements and develop close working relationships" said Mr Cocker, "our major role will be in establishing the need and opportunity to invest in the recycling sector within the Financial Community".
Beyond improving access to traditional sources of finance, WRAP will be reviewing and consulting widely on how new Financial Mechanisms may assist those needing new capital investment. WRAP could use significant amounts of its own funds to facilitate the creation of such mechanisms.
11 Investment Workshops are being held throughout England, Scotland and Wales during February and March 2002. "We want business to participate so we can clearly establish the sector's problems in accessing capital" said Dr Bevis Watts, Business Development Service Manager, "we have been and want to continue to consult financial institutions and investors on why the sector has traditionally been unattractive to them".
This initiative represents a significant practical step towards the achievement of WRAP's mission to create stable and efficient markets for recycled materials and products, by offering tangible support to businesses seeking to develop commercial opportunities in the manufacture of new recycled products.
ENDS
Editor's notes:
1. Organisations interested in attending the launch of WRAP's Business Development Service or the Investment Workshops should contact WRAP's Business Development Service, on 01295 819919.
2. WRAP's Business Development Service will be launched:
25th January, CBI Conference Centre, London
3. The programme for the Investment Workshops will be announced in early December 2001.
4. Businesses assisted through the Service will be those that will contribute towards WRAP's targets in its four priority material streams (paper, plastics, glass and wood). The primary focus of the material programmes is to work with manufacturing companies, other businesses and Government on increasing the applications for recycled materials and the proportion of these materials used in products.
5. WRAP, a not-for-profit company limited by guarantee, is supported by contributions totalling £40 million over three years from DEFRA; DTI; the Scottish Executive and the National Assembly for Wales.
6. It has been established to promote sustainable waste management and to create stable and efficient markets for recycled materials and products.
7. More than 150 stakeholders representing manufacturers, retailers, local government, community groups as well as the waste management industry contributed to a major consultation process leading up to the Business Plan published in June. The Business Plan is available on this WRAP website.
8. Waste Strategy 2000 set out the Government's approach to reaching new targets of reduced landfill and announced the establishment of WRAP as a new body dedicated to overcome market barriers promoting re-use and recycling.
Dr Bevis Watts, Business Development Service Manager
WRAP, The Old Academy, 21 Horse Fair, Banbury, Oxon
OX16 0AH
Tel: 01295 819909
Fax: 01295 819911
bevis.watts@wrap.org.uk
