On March 4, 2026, IFC; a member of the World Bank Group; officially announced a new regional initiative to accelerate investment-ready industrial plastic circularity across Latin America and the Caribbean.
BlackForest Solutions GmbH has been selected as the implementation partner, working alongside ABIPLAST(Associação Brasileira da Indústria do Plástico), the Brazilian Plastics Industry Association. This is not a research exercise. It is a structured program designed to move companies from declared sustainability commitments to credible, finance-ready investment plans.
The objective is to catalyze sustainable private sector growth by uncovering and validating high‑impact investment opportunities that drive development outcomes and attract responsible capital.
- The International Finance Corporation (IFC) has launched a regional initiative to accelerate industrial plastic circularity in Latin America and the Caribbean.
- BlackForest Solutions GmbH is implementing the programme, working with ABIPLAST (Brazil’s plastics industry association).
- The initiative helps companies measure plastic footprints, design reduction roadmaps, and build investment-ready circular economy projects.
- LAC produces 15.7 million tons of plastic annually (3.8% of global output); over 20% of Brazil’s plastic waste was recycled in 2024.
- The program aims to unlock development finance for circular plastics infrastructure and corporate sustainability strategies.
Plastic Waste in Latin America
- 15.7 million tons of plastic produced annually in LAC (3.8% of global output)
- Over 20% of Brazil’s plastic waste recovered as raw material in 2024 (8% YoY increase)
- $1.9 billion committed by IFC to circular economy in emerging markets
- 121–142 million people globally employed in the circular economy
- Growing demand for post-consumer resin (PCR)
What is Plastic Circularity and why it matters for Latin America?
Plastic circularity refers to a circular economy approach where plastic materials are reduced, reused, and recycled to keep them in the production cycle and minimize reliance on virgin fossil-based plastics. Instead of becoming waste after a single use, plastics are recovered, processed into post-consumer resin (PCR), and reintegrated into manufacturing supply chains.
This approach is increasingly important for Latin America, where plastic production and consumption are growing while waste management systems are still evolving. By adopting plastic circularity strategies – such as extended producer responsibility (EPR), recycled content use, and circular supply chain design – companies in the region can reduce environmental impact, comply with emerging regulations, and unlock new opportunities for sustainable investment and circular economy growth.
The gap between Plastic Sustainability commitments and action
Latin America and the Caribbean generates 15.7 million tons of plastic annually, 3.8% of global output. Brazil alone leads regional production, and while recycling rates are improving (over 20% of plastic waste was recovered as raw material in 2024, up 8% year over year), the majority of industrial plastic users in the region still lack the tools and roadmaps to meaningfully reduce their virgin and fossil-based plastic footprint.
The problem is not ambition. Across the value chain, plastic converters, large consumer goods manufacturers, packaging producers — sustainability targets exist. The problem is translation. Moving from a stated reduction target to a quantified baseline, a prioritized action plan, and an investment case that financiers will actually consider: that is where most companies stall. That is precisely what this initiative is designed to solve.
How the initiative works: A 4-stage process from baseline to investment pipeline
The IFC initiative has four operational stages, each building on the last:
→ Mapping regional industrial plastics demand and enabling conditions across LAC markets
→ Developing a company-level diagnostic tool to quantify virgin plastic baselines and model credible reduction pathways
→ Piloting customised circularity roadmaps with selected companies
→ Identifying investment opportunities that can directly inform IFC’s business pipeline
The output is much more than a report. The initiative will identify and validate promising business ventures with strong potential to deliver both commercial success and positive social and environmental impact. Working from verified, company level data, the initiative will present a range of opportunities that can attract development finance and other responsible investors, supporting entrepreneurs, strengthening local markets, and advancing inclusive economic growth.
How BlackForest Solutions supports circular economy implementation?
BFS brings a specific combination of capabilities to this mandate. Our work in waste and resource management, post-consumer plastics systems, and policy and scheme design across Latin America, Africa, the Middle East, and Asia is built around one principle: diagnostics that lead to action, not documentation.
We work with corporates, producer responsibility organisations (PROs), industry associations, and development institutions to translate sustainability objectives into measurable roadmaps. That means system diagnostics, KPI frameworks, operational rollout support, and stakeholder engagement across the value chain — not advisory at arm’s length from implementation.
In the context of this IFC initiative, BFS will be working directly with plastic value-chain actors in Brazil and across LAC to build baselines, test reduction scenarios, and structure the output for investment readiness. The work is grounded in local market conditions — not imported frameworks that assume contexts that don’t exist in emerging markets.
Why plastic circularity is accelerating in Latin America?
The circular economy opportunity in LAC is real and growing. Over 121 to 142 million people globally are already employed in the circular economy. The recycled content market in Brazil is expanding post-consumer resin demand is rising and manufacturers are under increasing pressure from both regulatory direction and investor expectations to demonstrate plastic footprint reduction.
At the same time, IFC has committed over $1.9 billion to circular economy projects across emerging markets. The organisation published its Harmonised Circular Economy Finance Guidelines in May 2025 to establish a shared language for identifying and quantifying circular economy investments. This initiative is a direct application of that framework — moving from guidelines to a live, company-level programme on the ground.
Single-use plastic reduction, extended producer responsibility (EPR) scheme development, and post-consumer resin market growth are all accelerating across the region. Companies that build internal capacity to measure and reduce their plastic footprint now will be positioned ahead of regulatory requirements and ahead of their competitors in accessing sustainable finance.
What this initiative means for plastic producers, converters and manufacturers in LAC?
If you are a plastic producer, converter, major user, or value-chain actor in LAC, this initiative is designed to be directly useful to you. The diagnostic tool under development will allow companies to quantify their virgin plastic baseline not estimate it and model reduction pathways that are technically and commercially feasible, not aspirational targets without grounding.
Pilot participation in the roadmap phase means access to structured support in turning your circularity commitments into a plan that can attract development finance. That is a concrete commercial advantage, not a sustainability checkbox.
The work starts now
This announcement marks the formal launch of the initiative. The mapping and baseline development phases are underway. BFS is engaged on the ground, working with IFC and ABIPLAST to move from programme design to company-level implementation.
Plastic circularity in Latin America is not a future ambition. It is a present-tense operational challenge with investment-grade solutions available for the companies willing to build the case. That is the work BFS is here to do.
Companies operating in Brazil and Latin America that want to reduce plastic footprints or develop circular economy investment strategies can collaborate with BlackForest Solutions GmbH to build measurable and finance-ready roadmaps.
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Read the full IFC press release: IFC.org
To learn more about BFS’s work in plastic circularity and EPR systems, contact us at BlackForest Solutions GmbH.
About the Author
This article was written by the BFS Insights team at BlackForest Solutions GmbH. BFS is an advisory and implementation firm specialising in waste and resource management, extended producer responsibility (EPR) scheme design, and post-consumer plastics systems across Latin America, Africa, the Middle East, and Asia. BlackForest Solutions is the implementation partner for IFC’s 2026 industrial plastic circularity initiative in Latin America and the Caribbean.
FAQs: Plastic Circularity Finance, EPR, and Investment Readiness in Latin America
Q1. What is the IFC industrial plastic circularity initiative in Latin America and the Caribbean?
IFC launched a structured regional programme in March 2026 to help industrial plastic users across LAC move from sustainability commitments to verified, finance-ready circularity investments — with BlackForest Solutions (BFS) leading implementation alongside ABIPLAST.
Q2. Who is BlackForest Solutions (BFS) and what is their role in this programme?
BFS (BlackForest Solutions GmbH) is an implementation-focused advisory firm with on-the-ground expertise in plastic circularity, EPR scheme design, and waste management across emerging markets. In this initiative, BFS works directly with LAC plastic value-chain companies to build baselines, model reduction pathways, and structure investment cases.
Q3. Which companies are eligible to participate in the pilot circularity roadmap phase?
Plastic producers, converters, packaging manufacturers, and major consumer goods companies operating in Brazil and across LAC are eligible. Priority is given to companies with existing sustainability targets who lack a quantified baseline or a credible plan to act on them.
Q4. What is a virgin plastic baseline and why does it matter for accessing development finance?
A virgin plastic baseline is a verified measure of how much fossil-based plastic a company uses annually — and without one, no development finance institution will fund your reduction plan. It converts a sustainability commitment into a number that financiers can assess.
Q5. What is Extended Producer Responsibility (EPR) for plastics, and how is it developing in Brazil and LAC?
EPR makes producers financially responsible for recovering the plastic packaging they put on the market — and regulatory momentum across Brazil and LAC is accelerating faster than most companies have prepared for. Building circularity capacity now positions companies ahead of compliance, not behind it.
Q6. What is the IFC Harmonised Circular Economy Finance Guidelines and how does it apply to plastic companies?
Published in May 2025, the IFC Harmonised Circular Economy Finance Guidelines define what qualifies as a fundable circular economy investment; including specific thresholds for recycled content, material recovery, and waste reduction. The BFS–IFC programme applies this framework directly at the company level across LAC.
Q7. How much has IFC invested in circular economy projects in emerging markets, and what types of projects qualify?
IFC has deployed over $1.9 billion into circular economy projects across emerging markets, targeting investments with measurable improvements in material recovery, recycled content use, and manufacturing waste reduction. Eligibility requires verified baseline data and a quantified reduction pathway — not targets alone.