Welsh Government has announced a new £6.5m Circular Economy Fund to enable companies to increase the use of recycled content in their products.
The fund will allow the government to reach its goals of achieving 70% recycling by 2025, and 100% recycling by 2050 as part of its Towards Zero Waste strategy.
The government cited packaging manufacturer Klӧckner Pentaplast as an example of how the company has been successful in using recycled content in their products.
As part of the funding, the government will offer financing to businesses looking for capital investment to increase their use of recycled materials in manufactured products, components or packaging.
Wales Housing and Local Government Deputy Minister Hannah Blythyn said: “Our fund will help to cover some of the costs of investing in new equipment and infrastructure, increasing the use of recycled materials in Welsh manufacturing.
“We know this has the potential to bring significant cost savings as well as helping businesses to reduce their carbon footprint. Increased use of recycled material provides economic opportunities.
“It also helps create and protect jobs by making Welsh manufacturing companies more resource efficient and resilient in terms of the security of supply of raw materials.”
Waste and Resources Action Programme (WRAP) Cymru will act on behalf of the Welsh Government to administer the fund.
According to the government, creating a circular economy for plastic waste will assist it in creating and protecting jobs in the region, enable manufacturing companies to be more resource-efficient and strengthen local supply chains.