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
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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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