New Delhi, India – September 17, 2024.
As the world looks for innovative solutions to reduce carbon emissions and preserve vital ecosystems, Canopy, the solutions-driven global not-for-profit unveiled an ambitious vision for India’s role in the global fight against forest loss and climate change. A new opportunity paper, Unlocking India’s Next Gen Economy: The Untapped Investment Frontiers in Material Substitution in India’s Textile and Pulp and Paper Industries, was released at Prabhav 2024, an investment forum run by the India Impact Investors Council (IIIC). Canopy outlines how India will be a pivotal player in the production of low-impact alternative fibres.
The paper highlights India’s enormous potential to transform agricultural residues, 100 million tonnes of which are currently burned, and two million tonnes of polyester-cotton textile waste into valuable low-carbon paper, packaging, and viscose for the Indian and global markets. Next Gen materials, derived from agricultural residues, discarded textiles and food waste, have the potential to not only reduce reliance on primary forests but also drive a circular economy, green jobs, and alleviate secondary health and environmental issues.
“India has all the ingredients — abundant feedstock, technical expertise, and a culture of innovation,” said Nicole Rycroft, Founder and Executive Director, Canopy, in underscoring the critical role India can play in this global shift. “What’s needed now is targeted investment, industry collaboration, and government support to scale this vision into reality.”
Canopy has set an ambitious goal to catalyze 60 million tonnes of Next Gen pulp, paper and textiles globally over the next decade. To achieve this, the organization estimates that $78 billion USD in capital will be required to support innovation and the development of advanced textile recycling facilities and ag-fibre pulp and paper lines.
Canopy envisions India playing a pivotal role in this transformation, with the potential to produce more than 10 million tonnes of Next Gen fibres annually. This infrastructure transition will require an estimated capital investment of 13 to 15 billion USD in India to build the needed processing capacity. This investment will not only reduce greenhouse gas emissions but also create new jobs, provide alternative livelihoods for farmers, reduce supply chain volatility, and help India emerge as a leader in the sustainable materials sector globally. For every tonne of primary forest use displaced by Next Gen fibres, there are an estimated four tonnes of GHG savings.
“While this is a relatively new investment area, low-impact fibres and materials will become a crucial strategy as the world moves rapidly towards decarbonizing industrial manufacturing,” Rycroft added. “We’re excited to work with all of the ecosystem actors as India accelerates the scaling of Next Gen materials.”
Domestic support for this India-led transition is building with leading brands like Flipkart and Anita Dongre as well as viscose producers like Birla Cellulose at the forefront of this Next Gen transformation. They join 980+ global Canopy partners, including Inditex, Walmart, H&M, adidas, Amazon, Penguin Random House, in incentivizing the transition from conventional ‘take, make, waste’ production to the circular low-carbon economy.
Link to access the discussion paper – DiscussionPaper_Canopy.pdf
