WRAP hopes to reduce waste at source by financially supporting firms to introduce business models and processes that make more efficient use of material resources.
The Waste Prevention Loan Fund (WPLF), launched last week, has a £1m pot available to support businesses, social enterprises and local authorities over the next four years. The funding will be distributed in phases, with the maximum investment set at £100,000 and the minimum at £20,000.
According to WRAP, the first phase focuses on resource-efficient business models, particularly targeting electrical and electronic products, furniture and clothing. In this phase, a percentage of the funding will be made available as loans to assist with cashflow for a business, whether a retailer or supplier, that is making the switch from generating immediate income through product sales to generating income for service delivery. An example of this could be offering customers the chance to rent products for a period of time rather than buy them outright.
Applicants for funding will need to demonstrate new approaches that offer substantial resource savings and can be scaled up and replicated at a national level. WRAP explains this could include product reuse, repair and upgrading services, such as leasing items, as well as materials recovery and reuse by the manufacturer.
WRAP director of design and waste prevention Richard Swannell said: We're delighted to be launching this new fund on behalf of Defra, and really looking forward to seeing innovative and inspiring expressions of interest coming in from the private, public and social enterprises. We think the WPLF offers a unique opportunity for entrepreneurial thinking to make a real difference in the design and development of new products."
Further phases will be announced later in the year and will look at supporting wider waste prevention and reuse activities in selected product categories.
Environment Minister Lord Henley added; "Preventing waste being created in the first place is not only good for the environment but also good for a company's bottom line. This new £1m fund will encourage inventive thinking that will be shared to offer resource efficiency savings for businesses and individuals."