Overview
Impact Bonds- Case Study
The World Bank has issued a principal protected Plastic Waste Reduction – Linked Bond. This innovative bond provides investors with a financial return linked to Plastic Waste Collection Credits, Plastic Waste Recycling Credits, and verified Carbon Units to be generated by two projects.
One of these projects is in Ghana and it aims to reduce and recycle plastic waste in vulnerable communities. The bond mobilizes private capital to support the funding of projects with positive climate and development impacts such as reduced plastic pollution, improvements in local pollution, better air quality, reduced health impacts, and the creation of jobs in marginalized communities. The project in Ghana benefitting from this innovative mechanism is by the ASASE Foundation. Their project involves starting and managing recycling plants as social enterprises in various vulnerable communities across the country. ASASE Foundation is expected to collect and recycle about 6,000 tons of plastic waste annually by 2025 and the expected quantity is to be increased regularly after 2025 till the end of the seven years (the bond's maturity period).
This can serve as an example of financial solutions to solid waste management in the various EHPMP countries.