Circular economy practices are becoming essential in packaging, textiles and apparel, electronics, and construction materials, where waste recycling and improving resource efficiency directly contribute to competitiveness and long-term growth.
IFC supports companies in the manufacturing sector to adopt circular practices across the entire product lifecycle. Our work spans Circular Design & Production, Circular Use, and Value Recovery — helping manufacturers rethink how products are made, used, and repurposed.
We also collaborate across the World Bank Group to create the policy and market conditions needed for circularity to thrive. This includes supporting governments and subnational authorities, together with civil society organizations, to design and strengthen Extended Producer Responsibility frameworks. In addition, IFC has established the Harmonized Circular Economy Finance Guidelines (HCEFG) to mobilize capital for circular economy solutions in the manufacturing sector.
How Does IFC Advance the Circular Economy and Waste Reduction in Manufacturing
IFC drives innovation in circularity by supporting companies to adopt advanced technologies and redesign products to be circular from the start. Our investments help manufacturers rethink traditional processes, waste reduction, and create more sustainable, resilient production systems.
These efforts focus on:
Waste Reduction:
- Supporting companies to modernize production processes so they use less virgin material or increase the use of recycled inputs.
- Helping investees add or expand their own waste recycling, reuse, refurbishment, or remanufacturing capabilities.
Minimizing Environmental Impact:
- Encouraging the design of products that are inherently circular, including those that are compostable, recyclable, or made with biodegradable materials.
- Promoting eco-friendly materials and packaging solutions that reduce emissions and reliance on virgin resources.
Building Resilient Supply Chains: Supporting businesses in integrating circular economy principles to create efficient and adaptable value chains.
Through strategic partnerships and tailored financing solutions, IFC enables companies to transform their operations, reduce their environmental footprint, and create long-term value for both businesses and communities.
The manufacturing sector plays a key role in addressing global waste challenges. IFC helps companies reimagine production models by prioritizing reuse, recycling, and sustainable material design.
These circular approaches help businesses reduce dependency on finite resources, lower emissions, and meet the growing demand for environmentally conscious solutions.
IFC supports the adoption of cutting-edge technologies that enable circularity in manufacturing, including:
Mechanical and Chemical Recycling: Advanced recycling methods that recover and reuse materials, reducing waste and conserving resources.
Biodegradable Materials: Encouraging the use of materials that naturally decompose, minimizing environmental impact.
Eco-Friendly Packaging: Developing packaging solutions that align with consumer demand for responsible and efficient products.
These innovations help businesses reduce waste and takes roles as global leaders in sustainable manufacturing.
IFC supports companies in integrating circular economy principles through tailored financing and advisory services. By reducing waste, optimizing resource use, and building resilient supply chains, businesses can grow while addressing global waste challenges.
IFC’s commitment to circularity helps companies thrive in a changing world and contribute to a cleaner, more efficient future.
Project Examples:
America Embalagens: In October 2025, IFC committed a strategic investment of €65 million to America Embalagens — a major Brazilian rigid-plastic packaging manufacturer — supporting the expansion and modernization of its largest plant in São Paulo. The upgrade involves adding two new production lines capable of making 200 million plastic tubes per year, using up to 80 % recycled resin, reducing reliance on virgin plastic and generating near-zero production waste.
Mohinani Group: In February 2025, IFC announced a US$37 million loan to Mohinani Group — via its subsidiaries Polytank Ghana Limited and Sonnex Packaging Nigeria Limited — to build PET-recycling plants in Ghana and Nigeria. Each plant will produce up to 15,000 tons of recycled PET (rPET) resin per year — replacing virgin PET used for beverage and food packaging. The project aims to close the “bottle-to-bottle” loop: around 90% of the input plastic waste will come from local small collectors, embedding waste-collection supply chains into the value chain.
Last updated: December 2025