Plastic Recycling Platform to Be Established

Plastic Recycling Platform Being Established

Abu Dhabi-based International Holding Company (IHC) announced the creation of Rebound Ltd to develop an innovative solution to reduce plastic pollution worldwide. This new subsidiary will launch Rebound Plastic Exchange, a global quality-assured trading platform for plastic raw materials that enables buyers and sellers to trade recycled plastics efficiently and with confidence. Rebound Plastic Exchange, scheduled to open for trading in mid-2022, will bring globally recognized standards, certification, insurance and quality assurance to the supply chain. The platform aims to significantly increase plastic recycling efficiency at scale, provide new economic opportunities, reduce the impact of plastic pollution on our planet and open the door to a global business opportunity worth AED 56 billion. Rebound Plastic Exchange was established by IHC, a multi-sector holding company and the largest company traded on the Abu Dhabi Securities Exchange. Syed Basar Shueb, Chairman and Chief Executive Officer of IHC, stated: "This is a groundbreaking concept coming from the UAE to the world with significant potential. The availability of a reliable advanced recycling system will play an important role in helping address plastic globally. We are confident that our investment in Rebound Plastic Exchange will be another successful venture for IHC and we are evaluating widespread distribution in other parts of the world." Maryam Al Mansoori, Chief Executive Officer of Rebound Ltd, said: "We have developed a global trading solution that offers a large-scale opportunity to reduce some of the world's plastic pollution through recycling. By capturing the value of plastic raw materials, we enable companies across all sectors from apparel to automotive to confidently access recycled content, while creating new opportunities for communities in the value chain to grow their economies."

A True Circular Economy

Almost 100% of plastic waste is recyclable, yet the global plastic recycling rate is only 15%[1]. Rebound Plastic Exchange will fill a significant gap in the market by facilitating a truly circular economy, as it creates a quality-assured platform for purchasing and sourcing recycled plastic to meet growing demand from consumer goods companies. Based on numerous commitments from global brands, many targeting a 20-30% increase[3] by 2025, a recycled content gap of 6 million tonnes is expected. Rebound Plastic Exchange creates new economic opportunities and a market entry point for approximately 80% of countries that do not have local capacity to process or consume plastic materials, or have neither. The passport system will enable responsible participation in plastic trading while also supporting governments' commitments to the Basel Convention Amendments. By 2025, approximately 5 million tonnes of recycled plastic is estimated to be bought and sold through Rebound. DHL Global Forwarding is one of the launch partners supporting the quality assurance process that Rebound Plastic Exchange has created as part of its verification protocol. Each product will be shipped by DHL to undergo laboratory testing based on accepted international standards before being traded. Amadou Diallo, Chief Executive Officer of DHL Global Forwarding Middle East & Africa, said: "As a global leader in logistics, we look forward to making supply chains more sustainable through Rebound Plastic Exchange and achieving environmental and business targets together. The symbolic signing of our partnership agreement at our MEA Innovation Centre also underscores our commitment to supporting UAE-based start-ups in connecting people and improving lives."

Trust and Transparency

Douglas Woodring, Chief Advisor of Rebound Ltd, said: "Rebound Plastic Exchange is the necessary intervention that will transform the world's plastic recycling industry. For the first time, plastic raw material trading will see the same levels of trust and transparency found in markets for other commodities, increasing business confidence and encouraging greater trading volumes, which means less plastic going to landfills."  

^[1] OECD. (2018). Improving Markets for Recycled Plastics: Trends, Prospects and Policy Responses. Retrieved from http://dx.doi.org/10.1787/9789264301016-en ; World Economic Forum. (2020). Plastics, the Circular Economy and Global Trade. Retrieved from http://www3.weforum.org/docs/WEF_Plastics_the_Circular_ Economy_and_Global_Trade_2020.pdf

^[2] Ellen MacArthur Foundation. (2021). Global Commitment. Retrieved from https://www.ellenmacarthurfoundation.org/our-work/activities/new-plastics-economy/global-commitment Woodring, D. & Hyde, T. (2020). Recycled plastic: There's market demand, but where's the supply? Retrieved from https://www.greenbiz.com/article/recycled-plastic-theres-market-demand-wheres-supply

^[3] World Economic Forum. (2020). Plastics, the Circular Economy and Global Trade. Retrieved from http://www3.weforum.org/docs/WEF_Plastics_the_Circular_ Economy_and_Global_Trade_2020.pdf Ellen MacArthur Foundation. (2021). Global Commitment. Retrieved from https://www.ellenmacarthurfoundation.org/our-work/activities/new-plastics-economy/global-commitment European Plastics Pact. (2021). Signatories - A full list of the current European Plastics Pact Signatories. Retrieved from https://europeanplasticspact.org/signatories-pact/

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