Making materials for fashion and packaging from crop and textile waste instead of trees from at-risk forests will require $78 billion globally by 2033, according to Canopy. To step in that direction, the Vancouver nonprofit announced a $2 billion blended-finance model to advance next-gen materials in India.

That nation needs up to $15 billion to shift industries toward adopting waste-based cellulosic materials, according to the initiative. So far the plan has secured $500 million, blending grants and capital. A mix of public and private investors is expected to contribute the rest. Large global brands are involved in the project, which would eventually be replicated internationally.

The Jan. 21 announcement, at the World Economic Forum’s annual meeting in Davos, included the Laudes Foundation of Amsterdam as well as the Singapore-based No.17 Foundation and investment firm Tsao Pao Chee.

Forests can’t supply enough trees to meet the demand across the fashion, packaging and construction industries, a Jan. 15 report by Canopy and Finance Earth warned. A United Nations projection of 14 percent growth in extreme forest fires by 2030 adds to the pressure.

“If companies and investors stay locked into business-as-usual wood sourcing, they are signing up for higher costs, greater supply vulnerability and growing regulatory and reputational risk,” stated Nicole Rycroft, Canopy founder and executive director. “This exposes businesses unnecessarily, given there is a clear exit ramp with next-gen and alternative sources.”

Next-gen materials use 4 metric tons fewer climate emissions than those derived from virgin tree pulp, according to Canopy.

Why India

In India, the initial $2 billion would enable 1.5 megatons of next-gen materials production, reaching $15 billion, to enable 10 million megatons by 2033.

India produces 8 megatons of textile waste each year. “Many agricultural residues are still being burned on the fields, when we know they can be used more sustainably, cutting air pollution and scaling a sustainable supply chain for paper, packaging and textiles,” stated Canopy’s Strategic Lead, Global Investments Zoë Caron. In addition, burning crops, such as the stubble from spring wheat harvests and from rice paddies in