Closed Loop Partners has concrete concerns

The recycling of construction and demolition materials has increased significantly by volume and percentage in the preceding decades. However, the leader of one investment firm and self-described innovation center, Closed Loop Partners, says architects, builders and developers may still need to address issues that can lead to considerable carbon dioxide (CO₂) emissions.

New York-based Closed Loop Partners has been most active in packaging or municipal recycling, with a particular eye on contributing to how discarded plastic is handled in the United States and globally.

In his new book “The Waste Free World,” Closed Loop Partners CEO Ron Gonen also examines the construction sector, in part to see how CO₂ emissions may need to be reduced.

Brian Taylor of Construction & Demolition Recycling magazine was offered the chance to ask Gonen for some of his thoughts on issues the C&D sector may need to address in the approaching years.

Construction & Demolition Recycling (CDR): Are there certain C&D materials or building products you have identified that have low recycling rates?

 Ron Gonen (RG): The materials used in construction and demolition represent significant value, including steel, concrete, glass, plastic and metal. In our current linear take-make-waste economy, finite resources are mined and extracted in energy intensive processes to produce materials that ultimately end up in a landfill or incinerator after use. In 2018, according to the United States Environmental Protection Agency (EPA), 600 million tons of C&D waste were generated, and C&D concrete was by far the largest portion of this at 67.5 percent.

As I detail in my recently published book, “The Waste Free World,” concrete is the world’s most commonly used building material, and construction’s worst greenhouse gas offender. The manufacturing of cement alone accounts for an estimated eight percent of total annual greenhouse gases emitted around the world. Cement is made from complex mixes of limestone, shells, chalk, shale, clay, slate, blast-furnace slag, silica sand, and iron ore––which, when heated to 2,700 degrees Fahrenheit, combine to form a rock- hard mass that is then finely ground into cement powder. It is clear that C&D has a massive [emissions] situation on its hands, which will only increase as existing and decaying infrastructure is torn down to make way for new construction.

To transition to a circular economy in the built environment, it’s critical to reuse and recycle existing building materials for as long as possible. At the same time, we need to consider designing out waste from the very start. This means considering new kinds of sustainable materials to use in construction and harnessing new technologies to better trace the life cycle of building materials.

CDR: To what extent does Closed Loop have current investors or allies who may wish to invest in boosting building materials recycling?

RG: Closed Loop Partners is committed to scaling circular economy and recycling infrastructure that keeps valuable materials cycling through manufacturing supply chains. Through Closed Loop Partners’ Infrastructure Fund, supported by the world’s largest retailers, corporate foundations, industry associations, materials science and consumer goods companies, we’ve invested in companies that are creating more circular solutions for the built environment. This includes Aero Aggregates, the first vertically integrated manufacturer of ultralightweight aggregate made from 100 percent recycled materials in the U.S.

The company turns postconsumer recycled glass in the Philadelphia region into “foamed glass” that has applications in transportation, infrastructure and construction. We’ve also invested in GreenMantra Technologies, a company that converts consumer plastics into polymers that can be used for building/construction materials like asphalt and roofing, and IntegriCo, a company that turns low value recycled plastics into composite railroad ties and other related products.

CDR: To what extent do you think federal or state incentives or policies can play a role in creating additional C&D recycling opportunities?

RG: With President Biden’s administration prioritizing building sustainable systems and fighting climate change, we see great potential to catalyze a more rapid transition to a circular economy.

Alongside working with local governments and municipalities, we continue to collaborate with our corporate partners and other major entities in the private sector, working towards innovative solutions to large-scale problems. A confluence of factors, including increasing regulatory pressures, consumer demand for more sustainable business practices, and growing climate risks, are driving opportunities for a more profitable and sustainable future for C&D.  

CDR: How have contractors and property developers responded when contacted by you or Closed Loop Partners with ideas or questions about improving recycling rates?

RG: We are seeing growing interest from contractors and property developers when it comes to transitioning to circular business models. Stakeholders are increasingly understanding the risks of continuing business as usual, and a circular economy offers a framework for global corporations and startups alike to reimagine capitalism in order to reduce costs, increase efficiency and protect the environment we share. It is a platform to amplify opportunities for growth in a natural resource-constrained world.