Moving towards outcomes-based financial mechanisms for waste prevention

Context & Challenge:

• The global plastic pollution crisis requires innovative financing mechanisms to address a $5.22 trillion funding gap: the amount required for a circular economy transition that significantly reduces material pollution over the next 15 years.
• Traditional funding models often fall short, lacking alignment and measurable impact, which calls for new approaches to mobilize resources effectively and ensure accountability.

Our Intervention:

• rePurpose Outcomes Lab, in collaboration with Earth Action, Upstream, and GreenBlue, embarked on a mission to explore the application of outcomes-based financing (OBF) to waste prevention. Inspired by successful OBF implementations in sectors like climate, health, biodiversity, and education, we aimed to create a model that ties funding to measurable outcomes. We developed a comprehensive report quantifying the financial needs and proposing a foundational framework for leveraging OBF in waste management.
• The intervention included a series of consultations, in-person events, webinars, and online engagements, gathering insights from a diverse group of stakeholders, including the private sector, DFIs, philanthropy, member states, and the UN Treaty on Plastic Pollution. The report outlines outcome metrics across environmental and social dimensions, showcases successful examples, and provides best practices for OBF implementation.

Key Outcomes:

• Our collaborative project engaged stakeholders from across the value chain, including reuse and refill experts, scientific consultancies, recycled content specialists, the World Bank, and standard setters. The report was socialized at key platforms such as the UN Global Plastics Treaty Negotiations, creating a valuable document for decision-makers to leverage in advancing their circularity goals and outcomes.