• The project introduces a first-of-its-kind business model in the waste sector in Santa Catarina, with potential for replication in similar contexts.

• The initiative aims to boost recycling rates, reduce landfill dependency, and increase waste recovery.  

   

WASHINGTON – IDB Invest has signed a financing agreement with Ecotriagem Ltda. to develop and operate Brazil’s first mechanized waste recovery facility in Brusque, Santa Catarina. The facility will sort recyclable materials such as paper, plastic, and metals from mixed urban waste, enabling large-scale recycling and reducing landfill use.

The facility will use automated technology to divert up to 20% of waste from the Brusque landfill and increase the recovery of recyclable materials. It will also create over 100 jobs and contribute to Brazil’s national goal of reaching a 48.1% waste recovery rate by 2040. 

   The financing package totals up to 116 million Brazilian reais (approximately US$21 million) and includes:

•    Two senior loans from IDB Invest: a 5-year loan of 11.4 million reais and an 11-year loan of up to 49.5 million reais.

•    Two blended finance senior loans: an 11-year loan of up to US$9 million (in reais equivalent) from the Canadian Net Zero and Climate Resilience Accelerator, and an 11-year loan of up to US$1 million (in reais equivalent) from the UK Sustainable Infrastructure Program. 

IDB Invest is also providing technical support for the improvement of the plant’s operations and the identification of new business opportunities tailored to local market conditions and offtakers, with a focus on short-term implementation feasibility. 

The initiative will also strengthen Ecotriagem’s operational efficiency, explore new market opportunities, and improve environmental, social, and governance practices.

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.

About Canadian Net Zero and Climate Resilience Accelerator

The Canadian Net Zero and Climate Resilience Accelerator, is a fund administered by the Inter-American Development Bank. The purpose of the Canadian Net Zero and Climate Resilience Accelerator is to drive climate resilience and reduce greenhouse gas emissions in Latin America and the Caribbean through new technologies, innovative business models and nature-based solutions, while promoting gender equality, diversity and inclusion.

About United Kingdom Sustainable Infrastructure Program

The UK Sustainable Infrastructure Program (UK SIP) is funded from the UK’s International Climate Finance commitments to accelerate and enable sustainable development in the Latin America and the Caribbean region by supporting and catalyzing strategic private sector investments in sustainable low carbon infrastructure, adaptation and resilience-focused activities, and nature positive activities, while also aiming to contribute to equality and social inclusion outcomes.

About Ecotriagem Ltda

Ecotriagem is a circular economy platform that develops and implements waste management and recycling infrastructure projects in Brazil. Its core mission is to increase recycling rates and improve the efficiency of the waste value chain. Ecotriagem is jointly owned by Just Climate and Eureciclo.

About Just Climate

Established by Generation Investment Management, Just Climate is a specialist investment business focused on scaling solutions for the highest-emitting, most off-track sectors of the economy. The challenge of achieving a net-zero world and addressing climate-related risk is huge, urgent and needs tremendous mobilization of capital. Just Climate's mission is to establish climate-led investing as a capital allocation imperative for institutional investors globally. For more information, please visit us at justclimate.com.

About Eureciclo

Eureciclo is the largest Packaging Recovery Organization (PRO) in Latin America, increasing the industry formalization, promoting economic viability for packaging materials with lower recyclability, investing in players and in infrastructure for the circular economy.  
Since 2018, eureciclo and 500 sorting facilities and cooperatives promoted the recycling of 1.7 million tons of post-consumption packaging waste, generating direct and indirect impact on 14,000 families, distributing over R$106 million to sorting facilities, and preventing 3.5 million tons of CO₂e emissions. Certified as a B Corporation, eureciclo has been recognized with awards such as Best for the World™, Prêmio ECO® from the American Chamber of Commerce (2022 and 2024), and has been listed among the 100 Startups to Watch, acknowledging its social, environment, and innovation-driven business model.