Greenback Recycling Technologies Ltd. is a UK-based recycling company with subsidiaries in Mexico. Greenback is specialized in plastic waste recycling and is developing innovative modular recycling plants with the capability to transform flexible and other plastic waste into pyrolysis oil and gas using microwave-induced pyrolysis. It was founded in 2018 by its current CEO Philippe von Stauffenberg.

IFC and Greenback have partnered to enter into a Collaboration Agreement (CA), under which IFC commits US$2 million in the form of a Convertible Loan Note (CLN).

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The project will be developed in Mexico and potentially other countries in the Latin America and the Caribbean (LAC) region.

The project supports Greenback in an initial pilot phase to develop and install three modules. IFC preserves the option to further support Greenback beyond the scope of this initial pilot phase. Once fully operational, the project has the potential to process up to 90,000 tons of plastic waste annually. Additionally, Greenback’s AI-driven eco2Veritas platform will ensure full traceability and compliance throughout the recycling process by certifying the neutralization of plastic waste through a blockchain-based verification system with the use of Internet of Things Blockchain and Artificial Intelligence.

IFC considers the governance risks associated with the project to be manageable. The risks identified in the earlier stages of the project have been adequately addressed through mitigation measures included in the legal agreement with Greenback. IFC employs a "milestones-based approach," requiring Greenback to meet specific criteria before the financial provisions are enacted.

Mismanagement in plastic waste recovery and recycling is causing significant economic losses and adverse effects on local and global natural systems and on biodiversity, especially in LAC countries. Moreover, the lack of technological alternatives to handle or introduce circularity schemes with respect to flexible plastic films hinders significant progress in the field. At the same time, the inability of governments and other lenders to ensure sustainable financing for the sector is a factor affecting the provision of adequate waste management services and technologies. Due to the inherent risks of the sector, finding institutions to lead investments in the waste recycling realm remains a challenge. The Greenback project would place IFC in the role of a lead investor, enabling Greenback to crowd-in other lenders. Thus, by taking on the responsibility of being the lead investor, IFC would channel substantial resources for the support of an important waste recycling project, thereby providing financial additionality. Furthermore, IFC’s engagement would ensure support to Greenback with the commercial and technical structuring of agreements with landfills and offtakers alike, representing a needed enhancement of governance. Having IFC involved would further mitigate environmental and social risks, while financial structuring support for the scaleup of the project would additionally ensure bankability. IFC’s engagement would support the development of a technological innovation in the plastic recycling area with strong backing from AEPW, Nestle and Grupo Bimbo. Greenback is one of the first of its kind offering a credible scale-up plan for a circularity scheme for flexible plastics. Its technology is innovative in the market and a viable approach worth pursuing. The technical expertise within IFC can help provide Greenback with the high-level guidance and technical assistance needed to further develop its approach. Consequently, there is clearly a non-financial additionality angle present in the project. Lastly, putting more emphasis on circularity in general will provide additionality to IFC’s project portfolio. By incorporating circular economy principles, such as reducing waste and promoting resource efficiency, IFC can not only enhance the sustainability of its projects but also unlock new business opportunities. This shift towards circularity can lead to innovative solutions, such as the development of eco-friendly products and services, which can attract investors and contribute to the overall success of IFC's project portfolio.

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on the information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site-specific, largely reversible, and readily addressed through existing mitigation measures and good international industry practices (GIIP). Key E&S risks and issues include (i) the company's management and monitoring systems to assess and manage E&S risks and impacts from the construction and operation of recycling modules funded under the project, ii) management of labor and working conditions and occupational health and safety (OHS) policies and practices, iii) monitoring and management of air emissions, waste and wastewater and hazardous materials; input waste supply chain issue iv) emergency planning and response and v) the company's stakeholder engagement activities related to E&S aspects.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.