The steps of a Circular Action Programme (CAP)

Feasibility study

Starting with a feasibility study is optional. Nevertheless, this way we can narrow down the volumes, prices, incentives, risks and budget per tonne.

We sign an agreement to collect 1000+ tonnes of recyclable materials within a timeframe of 12-18 months. Defining the material; the material quality (moisture & contamination); the accepted end destination (recyclers); the collection area; and the price to be paid per tonne. Payment can take place in milestones or after the audit has taken place.

Collection service agreement with client

Engaging the of supply chain

The engagement of the collectors in the supply chain starts at the end of the chain. From the recycler backwards. We sign offtake agreements with recyclers, guaranteeing the purchase price, volumes and quality requirements. We then do the same with the suppliers of the recyclers, the aggregators. Together with the aggregators we identify the best collection centers that buy from waste pickers. At each step we enroll with our KOLEKT App, posting material requests, minimum volumes and prices along the way.

KOLEKT App

With the collection centers we organise enrollment sessions with their waste pickers. Explaining that they will receive incentive payments (points) in the KOLEKT app when the waste pickers sell their materials to collection centers. Similarly the collection centers also receive ‘points’ for the sale of recyclables to aggregators. The KOLEKT app confirms the transaction with a digital handshake (OTP, confirmation or face recognition). The points issued can at any time be converted to cash via our ‘cashiers’. These accredited users have a bank account and receive payments from us in exchange for their accumulated points. The KOLEKT app works with users with no phone (face recogintion) and no bank account (via cashiers).

About Kolekt

Audits by independent auditors (like SGS, Control Union, TUV, etc) are undertaken once or multiple times during a Circular Action Programme. They are done so as to comply with EPR regulations, so that our clients can use claim the collections against their EPR targets.

Should clients reuire certification, we can also have the collected tonnes be certified against plastic standards like Verra’s Plastic Waste Reduction Standard, BVRio’s Circular Credit Mechanism or the Ocean Bound Plastic Standard. These standards often called ‘Plastic Credits’ can be delivered by our non-profit sister organisation BVRio. These certified and registered tonnes can then be traded.

Payment for the CAP can be done on delivery of the audit reports. We then charge the agreed price per audited tonne. This payment on delivery reduces the client’s risk.

Audit, certification and payment

Circular Action invests in increasing the capacity and efficiency of collection by financing capital equipment purchases for our supply chain partners. This can be a baling maching, a truck, conveyor belt or shredder. We charge the capex investments back from the supply chain actors as their processing volume increases.

Waste equipment financing