International Holding Company (IHC), the largest company listed on the Abu Dhabi Securities Exchange, announced today the establishment of Rebound Ltd., dedicated to reducing global plastic pollution. The subsidiary will launch the Rebound Plastic Exchange, a quality-assured trading platform for plastic feedstock that will enable global buyers and sellers to efficiently trade recycled plastic with trust and confidence, said IHC in a news release.
Scheduled to begin trading in the middle of this year, Rebound Plastic Exchange will apply globally recognized standards, certification, insurance, and quality assurance to the supply chain. The platform aims to increase the efficiency of recycling plastic at scale, provide new economic opportunities, and reduce the impact of plastic pollution on our planet, said IHC, which predicts that the initiative will unlock a global business opportunity worth an estimated AED 56 billion ($15 billion).
“The availability of a reliable advanced recycling system will play an essential role in helping address plastic in the environment of many countries around the globe,” said Syed Basar Shueb, IHC Chief Executive Officer and Managing Director. “We are confident our investment in Rebound Plastic Exchange will be another successful business for IHC, and we are evaluating wide-scale deployment in other locations around the world."
Rebound Plastic Exchange
Only about 15% of plastic is recycled globally, said IHC, citing a report from the Organisation for Economic Co-operation and Development. Yet, recyclate is in great demand as global brands scramble to increase the amount of recycled content in their packaging and products. According to the Ellen MacArthur Foundation, a 6-million ton deficit in recycled content is forecast as brands aim to meet commitments of a 20 to 30% increase in the use of recycled content by 2025.
Rebound Plastic Exchange intends to create new economic opportunities and a point of market entry for the estimated 80% of countries that lack domestic capacity to process or consume plastic feedstock. The exchange’s “passporting” system will support governmental commitments to the Basel Convention’s Amendments while responsibly participating in the trade of plastic. Rebound estimates that by 2025 it will have facilitated trade of roughly 5 million tons of recycled plastic.
|Douglas Woodring, Lead Expert, Rebound Ltd.|
DHL Global Forwarding has partnered with Rebound Plastic Exchange, supporting the quality assurance process that is part of the verification protocol. Each product will be sent by DHL to undergo laboratory tests based on accepted international standards before being traded.
“For the first time, the trade of plastic feedstock will see the same levels of trust and transparency that exist in the market for other commodities,” said Douglas Woodring, Lead Expert at Rebound Ltd. “Increasing business confidence and encouraging greater trading volume will mean a reduction in plastic going to landfills,” he added.