The London Waste and Recycling Board (Lwarb) is to invest up to £3m in a private equity fund to back innovative waste management businesses.
The fund will also focus on less capital-intensive, asset-light business models in the wider circular economy sector.
Lwarb will consult potential fund managers in order to prove the concept and develop views on the best structure. Proposals will have a London emphasis in terms of job creation, investment, customer concentration or waste sourcing.
Chairman Richard Tracey (left) said: “London is growing and we will need increasingly to find innovative ways of preventing waste and dealing with unavoidable waste.
“With this fund we hope to continue supporting the development of infrastructure and businesses in London, and also accelerate the move to a circular economy in the capital.”
Investment committee chair Melville Haggard said: “Building on our past experience of financing waste infrastructure projects in London, we are confident that this new finance product addresses the needs of early-stage ventures, helping businesses with high growth potential to get off the ground.”
Lwarb has already contributed £18m to the London Green Fund, launched in 2009, and during the past four years has directly invested in a number of waste infrastructure projects in London.
Previous investments include plastic films recycler Plasrecycle, East London Biogas and PET bottle reprocessing and material recovery facility Ecotech.
A Prior Information Notice has been issued in the official journal of the European Union.