50 Investible Opportunities for a New Nature Economy Supplementary Appendix 2026

Page 47 of 70 · WEF_50_Investible_Opportunities_for_a_New_Nature_Economy_Supplementary_Appendix_2026.pdf

47 Bio - based textile recycling collects and sorts used garments and then recycles them mechanically or chemically to make new fibres or pulp, reducing landfill and demand for virgin resources – Cuts water, chemicals, and waste: Reduces landfill, textile microfibre pollution, as well as water and chemical use – Eases pressure on agricultural land: Displaces new cotton crops and resulting land conversion, water use by leveraging used textiles. Archetype Scalable Nature impact Transformative impact Suitability of financing and de - risking instruments Technological / process maturity Capital intensity Scalability Bonds Loans Equity Other De - risking Commercial bonds Thematic bonds Sustainability - linked bonds Impact bonds Commercial loans Thematic loans / project finance Sustainability - linked loans Impact loans Commercial equity Private equity Venture capital Impact equity Blended finance Insurance Advanced market commitments Legend: Low High Low suitability High suitability Payments for ecosystem services Land ecosystem Ocean ecosystem Freshwater use Resource use Pollution Co - benefits Climate Social ✓ ✓ – Scalable through technology mix: Mechanical recycling is mature for pure cotton, while chemical and enzymatic routes — now at pilot to early commercial scale — offer broader feedstock use but need cost reduction and larger infrastructure to scale. – Financing suitability characteristics: Bio - based textile recycling plants are capital - intensive infrastructure assets, best suited to thematic or sustainability - linked loans and project finance structures that can absorb long payback periods. Blended finance can de - risk early - stage projects by combining concessional or public funds with commercial lending, especially for chemical or enzymatic recycling technologies which are still maturing. Impact equity may play a limited role in demonstration or scale - up phases but is less suitable once plants reach operational scale.– Revenue potential : Can support access to new, premium markets when quality standards are met. Returns improve with scale and stable offtake agreements, though early plants may face yield variability and high per - unit costs. Negative impact Positive impact Financing target : Recycling plants Agri, Food & Forestry Chemicals, Plastics & Pharma Construction Materials Energy Mining Technology Transportation & Logistics Cross - sectoral Automotive Fashion & Textiles Leisure Waste Management Metals & Steel Conditions Use of non - toxic chemicals; no behavioural “rebound” effects in consumption Financial impact Revenue increase✓ Opex reduction – Capex reduction – Bio - based textile recycling FINANCING THE NATURE - POSITIVE TRANSITION
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