On Tuesday, International Holding Company (IHC), the Abu Dhabi multi-sector conglomerate that is also the largest company listed on the Emirate’s exchange, announced the formation of a new subsidiary, Rebound Ltd., to launch Rebound Plastic Exchange. IHC describes the new exchange as a global quality-assured trading platform for plastic feedstock, enabling buyers and sellers to efficiently trade recycled plastic with trust and confidence.
Scheduled to open for trading in mid-2022, Rebound Plastic Exchange will introduce globally recognized standards, certification, insurance, and quality assurance into the global 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 the planet.
“We’ve developed a global trading solution that offers a large-scale opportunity to reduce some of the world’s plastic pollution via recycling,” said Rebound Ltd General Manager Maryam Al Mansoori in an official comment. “By capturing the value of plastic feedstock, we allow companies across all sectors, from apparel to automotive, to access recycled content with confidence, while creating new opportunities for communities in the value chain to grow their economies.”
According to research from the World Economic Forum, and provided by IHC, while nearly 100 percent of plastic waste is recyclable, only about 15 percent of global plastic is currently being recycled. The existing market for recycled plastic is fragmented, complex and opaque, making it difficult to source a good quality product. Rebound Plastic Exchange says it will fill a significant gap in the market, facilitating a circular economy by creating a quality-assured platform to purchase and provide feedstock of recycled plastic to meet demand from multinational companies.
Per IHC’s projections, there is expected to be a 6 million ton deficit of recycled content based on the many commitments of global brands, many of whom are aiming for 20-30 percent increases by 2025. Various other regional pledges will further increase the demand gap for recycled plastic. The EU Circular Economy Action Plan, for example, proposes mandatory requirements for recycled content for plastic products and recycling rates of 50 percent by 2025 and 55 percent by 2030.
Rebound Plastic Exchange creates new economic opportunities and a point of market entry for the estimated 80% of countries without domestic capacities to process or consume plastic feedstock, or both. Its passporting system will also support governments’ commitments to the Basel Convention‘s Amendments while responsibly participating in the trade of plastic. By 2025, it is estimated that roughly 5 million tons of recycled plastic will have been traded via Rebound. Recycling this amount of plastic is also the CO2 equivalent of removing emissions from 5 million cars.
“This is a breakthrough concept coming from the UAE to the world with significant potential,” IHC Chief Executive Officer and Managing Director Syed Basar Shueb said. “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. We are confident our investment in Rebound Plastic Exchange will be another successful business for IHC.”
DHL Global Forwarding is one of the launch partners to support the quality assurance process which Rebound Plastic Exchange has created as part of its verification protocol. Each product will be sent by DHL to undergo laboratory tests based on accepted international standards before being traded.
“As the global leader in logistics, we look forward to making Rebound Plastic Exchange’s supply chains more sustainable and achieving environmental targets and business ambitions together,” said Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa. “The symbolic signing of our partnership agreement at our MEA Innovation Centre also underlines our will to support UAE based Start Ups to connect people and improve lives.”
“Rebound Plastic Exchange is the needed intervention which will transform the world’s plastic recycling industry,” said Douglas Woodring, Lead Expert of Rebound Ltd. “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, increasing business confidence and encouraging greater trading volume, which will mean a reduction in plastic going to landfills.”
Rebound joins more than 30 corporate entities under the IHC umbrella, which spans sectors including Real Estate, Agriculture, Healthcare, Food and Beverage, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.
