David Katz is founder and CEO of the Plastic Bank, a company that aims to stop plastic pollution by turning waste into currency. In areas with official stores, collectors can turn in plastic waste and receive cash or credit to an online account, which can then be used to purchase everything from insurance and phones to cooking fuel and stoves. We talked with Katz about why making plastic valuable can help stop it from entering the ocean while also reducing poverty.
There are many companies and organizations working to end pollution and poverty. What makes the Plastic Bank different?
It’s estimated that there are over 150 million tons of plastic in the ocean, with a garbage truck of plastic entering the ocean every minute. There isn’t a single solution, and I think it’s important to communicate that we need an army of people to solve this issue. What makes us unique is that we recognize the value in the 8.3 trillion kilos of plastic that’s ever been produced, almost all of it still here as waste. It’s difficult to estimate, but well under 500 billion could alleviate all forms of poverty around the world. And if we take that 8.3 trillion kilos of plastic at roughly 50 cents per kilo, we’re unleashing a 4 trillion-dollar market opportunity for the world.
How do you put a value on plastic waste?
We give plastic value by using it as money. Our collection centers accept it as a currency in return for goods and services, and we sell that as a raw material into manufacturing, closing the loop in the circular economy. I like to talk about this parable of acres of diamonds. If you’re walking over diamonds, and there’s no bank, no store, nothing you can do with them, they stay on the ground as rocks. We give value to plastic and get if off the ground by accepting it as a form of currency. Once we do that it’s not litter. It’s cash. No one throws cash on the ground.
Why does this model work?
Our model works because we don’t differ from the traditional recycling industry. In fact, we want to be world’s largest recycling company. What makes us unique is we’re recycling for the masses, cutting out the middleman and ensuring the poor make the most. Additionally, when plastic is of value and being collected, it’s easier to recycle, because it doesn’t collect the waste and degrade like it traditionally would sitting in the canals or entering the ocean and floating back to shore.
There is demand for our product because we have our own category, Social Plastic, which is certified to have been contributed or sourced directly from the Plastic Bank. We’ve already partnered with several companies; Marks & Spencer, Henkel, Shell. Our customers are most enlivened by knowing that it is not just recycled material. That it’s a material with value that is transferred through lives.
Additionally, we are a for-profit business. We are focused on profitability and providing our product at the lowest possible cost, period. Non-profits deplete money as slowly as possible. For-profits multiply the same pool of money as quickly as possible. It’s been proven that for-profit has the greatest opportunity for impact. Both good and bad, by the way. But put to the force of good, it’s unlimited.
Where are you located and what are plans for expansion?
We’ve been operating successfully in Haiti since 2015, and even have collection locations in schools so people can pay for their tuition directly. We expanded to the Philippines in 2016 and one of our global partners, Shell Energy, has a thousand stores at gas stations in the country that now also function as Plastic Bank collection locations. Staff have been hired for an expansion into Brazil and a philanthropist is sponsoring our entry into Indonesia. Plans are also in the works for Ethiopia and the horn of Africa, as well as India. We’re growing exponentially.
We probably get ten to twenty requests a day from people around the world asking for us to come into their community. There is a strong demand because we are a conduit for change. We’ve created an application so that anyone in the world can create their own recycling infrastructure wherever they are. They just need a collector, a redemption location, a collection location, a recycler, and a courier. Five simple easy components to create. We just need to oversee a few things and have someone in the country to authenticate the social nature, making sure children are not employed and things like that. But we provide a very simple way for anyone in the world to create a social plastic ecosystem.
What is your end goal?
Our goal is to monetize waste. To create a globally recognizable, tradeable currency for the planet. We need to eliminate the word waste, waste pickers, those things. We are creating an ecosystem that will ignite a social plastic revolution, that unites and enrolls humanity for local action that creates global impact.
Radical Markets- Workable Ideas
We are living in a very interesting age. Call it a phase. A phase; where long cherished ideas of globalization is coming under threat, where Xenophobic attitudes are taking hold, where the right-wing has gained a lot of wind under them and seems ready to fly. Trump’s election, Brexit and anti-immigrant hysteria, all point towards a disturbing trend which looks as if gaining popularity and acceptance. In such a phase the ideas and concepts, utterly novel in their nature and perfectly workable if implemented, presented in the book Radical Markets gives us a hope.
Let’s start with the monopoly problem of property. Private ownership of a property while have certain advantage still cause many problems. For instance, the example, that any single person can sabotage a project if he decides to value his property at exorbitant prices after knowing it comes under a government project, for instance Hyperloop, is very common. Commenting on the “allocative” and “investment” efficiencies of a property the writers present an elaborative system to optimize both of the above mentioned functions. Surprisingly abbreviating into a very apt name, COST, the Common Ownership Self-assessed Tax, provides us with an alternative to the normal, usual taxation system. Moreover, possessing a self-regulating mechanism COST assures that the person uses the property for the best purpose. Avoiding the intricate details here, one can consider it as a system where-in one’s property would be listed on a national/international database with its price along with the option of anyone able to buy it at a click. If the property is very important for a person he might keep the price at such a level so that nobody can easily buy it however, at the same time he will be paying a handsome amount of tax on the declared value (a detailed description regarding the basis of the taxation is given in the book) which should bring in the most optimal level of pricing. Too much of a price and he ends up paying a lot of tax, too little and someone else might get it.
Not only this but the above concept can also be applied to personal skills such as for doctors, engineers and others.
Other ideas include Visa for Individual Program (VIP) which might prove to be very useful to curb xenophobic attitudes. The proposal includes setting up such a system where-in an individual, for example from U.S., invites a computer scientist here in Pakistan, and vouchsafe for these immigrant while he works at the company that the person in U.S. was able to find and share his salary with this man. Such a win-win situation might help to address many questions and grievances of people from both side of the world.
One of my most favorite and a truly radical idea is that of Quadratic Voting. Democracy, of-late, is under threat all over the world. Populism is gaining momentum and rabble-rousers are seizing the opportunities. One of the major reasons is that somehow, at some point, like globalization, democracy has failed to deliver. Problems like “majoritarian cycling” make matters worse. At times, majority can trespass on the rights of minorities. To quote the example from the book let’s suppose there is a society that has a certain plant due to which the utility bills have reduced. However, there are some in that society who due to certain health problems suffer due to that very plant. In case of a traditional voting process i.e. 1 person, 1 vote (1p1v) the majority would easily win however, for that particular class of society it is a matter of life and hence immensely significant. Quadratic Voting focuses preference and intensity of preference instead of a for and against approach. In such cases a minority can win over a majority.
To conclude, all of us, especially policy-makers around the world should consider, brainstorm and try to implement these ideas, albeit, at smaller scale, for the sake of experimentation, deducing results, suggesting improvements and omitting errors, if any.
Closing the Loop: Meet the Pioneers Turning our Global Economy Circular
A remarkable transformation is taking place in the global economy, with more and more established and start-up businesses generating value from waste products that otherwise would end up in landfill or our oceans, rivers and lakes. This is the finding from the fifth annual Circulars award, which recognizes businesses, governments and individuals that use innovation and disruptive technologies to reduce waste, emissions and the use of harmful materials.
With the circular economy estimated to represent a potential $4.5 trillion growth opportunity for the global economy, this year’s awards saw an expansion in the scope and scale of successful circular solutions. In total, close to 450 applications were received from over 45 countries, a 50% increase on last year.
“More and more businesses understand that Closing the Loop isn’t just about stewardship of our natural resources, it’s about gaining a competitive edge. Companies that lack a circular strategy risk being left behind in the new economy of the Fourth Industrial Revolution, said Terri Toyota, Deputy Head of the Centre for Global Public Goods, World Economic Forum.
The winners received their awards at the World Economic Forum Annual Meeting in Davos. They are:
Award for Circular Economy Multinational: Schneider Electric (France) for integrating circular concepts throughout its business including prolonging product lifespan through leasing and pay-per-use; introducing take-back schemes into the supply chain and using recycled content and recyclable materials in their products; 12% of the firm’s revenues now come from circular activities and, between 2018 and 2020, about 100,000 tonnes of primary resource consumption will be avoided.
Award for Circular Economy SME: Lehigh Technologies (Atlanta, USA) for extracting resources from end-of-life tyres into new tyres and other materials. To date, the company has manufactured more than 500 million new tyres using its circular model.
People’s Choice Award: TriCiclos (Chile) for building and operating South America’s largest network of recycling stations. To date, the company has diverted 33,000 tons of recyclable material from landfills and saved over 140,000 tons of CO2 emissions.
Circular Economy Public Sector: The European Commission for their strategic leadership through the development and implementation of their international circular economy framework, ‘The Circular Economy Action Plan.’ This framework has assisted 24% of all EU SMEs in delivering circular products or services and has guided many Member State national governments to create their own circular economy strategies..
Circular Economy Investor: Impax Asset Management (United Kingdom) for encouraging circular investments by mainstream investors. Impax’s environmental markets classification system was adopted by the FTSE in 2007. Today, it invests around $8 billion in more than 100 listed companies.
Circular Economy Tech Disruptor: Winnow (United Kingdom) for helping the food industry cut waste. Winnow’s smart meters analyse what is put in bins, which in turn helps inform production processes. Winnow cut waste in half in thousands of kitchens globally and saved customers $25 million per year, the equivalent of 18 million meals per year or preventing one meal from going to waste every seven seconds.
Circular Economy Leadership: Flemming Besenbacher, Chairman of the Danish Government’s Advisory Board for Circular Economy, for leadership in driving the circular economy in Denmark and beyond including in his role as Chairman of the Supervisory Board of Carlsberg.
In addition to the winners above, shortlisted companies include:
– AB InBev (Belgium): For circular activities including upcycling spent grains into protein-rich drinks and working with customers and suppliers to improve recovery and return of packaging; 43% of the company’s volume is now packaged in returnable glass bottles
– Cambrian Innovation (USA): For its EcoVolt technology, which allows the conversion of waste water from industrial processes into clean water and energy; with nine plants across the US, the company has treated more than 320 million litres of wastewater, recycling almost 95 million litres
– Close the Loop (Australia): For keeping plastic out of landfill; by developing an asphalt additive, the company is able to use soft plastic and used printer toner cartridges to make high-performance road surfaces; every kilometre of road uses the equivalent of 530,000 plastic shopping bags and 12,500 printer cartridges
– DyeCoo Textile Systems (Netherlands): For bringing the circular economy to the textile industry; its CO2-based technology eliminates the use of water and chemicals in the dyeing process; the impact of one dyeing machine eliminates the need for 32 million litres of water and 160,000 kilogrammes of processing chemicals per year
– Enerkem (Canada): For making biofuels and renewable chemicals from waste; the company’s technology allows the carbon in non-recyclable waste to be recycled in five minutes and converted into biofuels and bio-renewable chemicals
– HYLA (USA): For extending the lives of mobile phones and other devices; through its repurposing model, more than 50 million devices have been given a second life, creating $4 billion in value for their owners, keeping 6,500 tons of e-waste from landfills
– Miniwiz (Taiwan, China): For turning consumer waste into high-quality building materials; its “Trashpresso” mobile upcycling plant enables recycling without shipping waste long distances; the company has saved 17 million kilogrammes of CO2 in construction projects alone
– Tianjin Citymine (China): For pioneering the concept of “urban mining” using mobile recycling stations at waste sites to produce a reverse-logistics system of urban waste
“Consumers, employees, stakeholders and policymakers alike expect companies to lead with purpose around sustainability and are holding them accountable. Inaction or idleness can severely harm competitiveness, with a drop in stakeholder trust costing businesses globally $180 billion in potential revenues,” said Peter Lacy, Senior Managing Director, Accenture Strategy. “Moving to a circular economy delivers the disruptive change needed to secure a sustainable future, while enabling businesses to unlock innovation and growth. We are proud to recognize the individuals and organizations that are leading the circular movement, creating a thriving global economy.”
Former African Envoys advocate for more economic engagements with Russia
Former Ambassadors have strongly urged African leaders and business entrepreneurs to prioritize the most sustainable development needs as the best approach to seeking Russian investors in fixing their economies in Africa when they converge this October for the first Russia-African summit planned in Russia’s southern coastal city of Sochi.
In separate interviews, they believed what was abundantly clear how to stimulate African governments into exploring investment opportunities in Russia and Russian investors into Africa within some framework of mutual-cooperation.
Former South African Ambassador, (H.E.) Mandisi Mpahlwa, said that Sub-Saharan Africa has understandably been low on post-Soviet Russia’s list of priorities, given that Russia is not as dependent on Africa’s natural resources as most other major economies. It is important to point out that Soviet and African relations, anchored as they were on the fight to push back the frontiers of colonialism, did not necessarily translate into trade, investment and economic ties, which would have continued seamlessly with post-Soviet Russia.
“Of course, Russia’s objective of taking the bilateral relationship with Africa to the next level cannot be realized without close partnership with the private sector. Africa and Russia are close politically, but they are also geographically distant and the people-to-people ties are still far under-developed. This translates into a low level of knowledge on both sides of what the other has to offer. There is perhaps also a measure of fear of the unknown or the unfamiliar in both countries,” according to Mpahlawa.
Former Ethiopian Ambassador, Professor (Dr) Teketel Forssido, said that one of the biggest problems has been keen competition from the United States, Europe, China and India as more developed countries with more advanced technological and development oriented solutions, and have become, for the past decades, ” investment patrons” in African countries. These are what Africa need, – foreign policy directed towards the development needs of Africa.
Former Nigerian Ambassador, Air Commodore Dan Suleiman, told me that Africa’s drive for sustainable democratic governance backed by an enhanced economically viable environment is of paramount importance. Many African leaders are emphasizing the quest to eradicate poverty and give people a sustainable environment for budding democracy.
“It is Africa’s hope that foreign authorities will back us in this direction. It is important to remind foreign investors that investment opportunities for developing large and medium scale enterprises are abound in Africa. The importance of the informal sector in generating employment and promoting self-reliance through higher productivity. We implore Russian investors to take advantage of these new potentials,” Air Commodore Dan Suleiman stressed in his discussion.
Undoubtedly, the Russian government stance on supporting the policy of Africa to employ plausible solutions to resolve their infinite problems should be extolled assertively, wrote former Tanzanian Ambassador, Dr Jaka Mgwabi Mwambi.
He said, for instance, “Tanzania is currently on the verge of a bitter wrangle with iniquitous restraints, in order to redress all government systems, for the bright future of its wrath citizens. Thanks, it is discernible that the country is proactively moving steadfastly in a middle-income economy.”
Former Kenyan Ambassador to the Russian Federation, H.E. (Dr) Paul Kibiwott Kurgat explained in a recent interview discussion that any platform created for African leaders has to address thoroughly development-oriented questions, Kenya’s diplomacy has mostly focused on strengthening economic cooperation with foreign countries.
“Looking at the global development, Kenya would always like to build on this long history of strong and comprehensive engagement, first and for most, through developing closer ties with Russia in trade, investment and economic cooperation. So, my advice is that African leaders have to think objectively, first about effective ways how to improve the economy,” he said.
The Government of Kenya’s priority sectors range from infrastructure and energy development, industrialization and agriculture, manufacturing, tourism and among others. The development opens a myriad of investment opportunities to all potential foreign investors across the globe including Russia, Paul Kurgat added in his emailed comments from Nairobi, Kenya.
Former Mozambican Ambassador to Russia, Dr. Bernardo Marcelino Cherinda, emphasized that the changes in Russia have provided a greater impetus for forging new diversified relations, especially in the economic sectors, in Africa.
By this measure, African leaders have to relentlessly work towards a more effective cooperation and use political dialogue to remove obstacles that might hinder smooth progress and development. Whether they like it or not, African leaders have to make rational decisions to align their efforts and policies with this key goal of developing or building their economies, according to him.
Both Russia and Africa have to facilitate participation in the private sectors, to get also involved in medium-sized economic partnership, joint ventures, agro-processing industries, health and education. African leaders do not have to, in the least, doubt the enormous potentials that exist for these, according to the former envoy.
“And, I think it’s equally important Russia and Africa focus seriously on cultural aspects in their activities in order to bridge the widening information gap between the two countries. Russia has made the mark and it’s respected for its indelible historical achievements, literature and for the human values. The use of soft power as an instrument for new image-making initiatives has to be intensified,” Cherinda concluded.
Stergomena Lawrence Tax, Executive Secretary of the Southern African Development Community (SADC), assertively stressed in discussion with Russian authorities that strengthening ties in a broad range of economic fields would show that SADC truly remains as one of Russia’s key partners in Africa. SADC is an inter-governmental organization with its primary goal of deepening socio-economic cooperation and integration in the southern region.
Foreign Minister Sergey Lavrov and H.E. Dr. Nkosazana Dlamini-Zuma, the first woman to lead the bloc of 54 states, had discussed several times about Russian companies or industries participation in major infrastructure projects on the continent. Currently, Chad’s Moussa Faki Mahamat has also held discussion on Africa’s Fourth Industrial Revolution and has made efforts at enlisting Russia’s effective support for the Agenda 2063 of the African Union (AU).
For the past one and half decades (since his appointment in 2004), Foreign Minister Lavrov has held in-depth discussions on the current situation in Africa and always pointed to the possibility of continuing to promote effective bilateral cooperation in many spheres and to work together towards using fully the existing potentials. He always reminds that Moscow firmly supports the principle “African solutions to African problems” within a framework of achieving the Sustainable Development Goals (SDGs) formulated by the African countries.
Discover the new Right to education handbook
Education is a fundamental human right of every woman, man and child. However, millions are still deprived of educational opportunities...
Rift deepens between US and EU over Iran
Recent days have been witness to two important events: the Middle East Conference in Warsaw (co-hosted by Poland and the...
6 Secrets About the New Four Seasons Hotel in Bengaluru
Here are the six most anticipated experiences at Four Seasons Hotel Bengaluru at Embassy ONE that we bet you can’t wait...
Belarus Rail Sector Reforms Would Boost Competitiveness, Contribution to Economy
Organizational restructuring, tariff reforms, and strategic use of digital technologies would boost the competitiveness of the Belarusian railway sector, improving...
Beating The Drums Of War Against Iran And Pakistan
As countries continue their squabbles, their home the earth is going to hell in a handbasket. A new review paper...
Radical Markets- Workable Ideas
We are living in a very interesting age. Call it a phase. A phase; where long cherished ideas of globalization...
Kalbushan Jhadav: Cloak and dagger in India-Pakistan relations
Both rivals have completed their arguments on Kalbushan Jhadav, on death row, before International Court of Justice. India says Jhadav...
Terrorism2 days ago
Kashmir puts Chinese counterterrorism on the defensive
Intelligence3 days ago
Content in New Media as an instrument of interfering in the internal affairs of sovereign States
Reports3 days ago
Innovation Paves Way for Next Stage of Global Energy Transformation
Eastern Europe3 days ago
Another government but the same problem in Latvia
Russia2 days ago
Standing for Everything Evil against Everything Good: Russia’s Hostile Measures in Europe
Reports2 days ago
Responsible investment and sustainable development growing priority for private equity
Energy News3 days ago
IEA holds high-level workshop on hydrogen
Reports2 days ago
Turkey needs to step up investment in renewables to curb emissions