Canopy lands US$60M in funding for alternative fiber-based packaging production

18 Apr 2023 --- Environmental organization Canopy has landed US$60 million in financing from the non-profit funding initiative The Audacious Project. The grant will be invested in scaling fiber-based materials for packaging, F&B and fashion brands, of which over 900 major businesses like Ben & Jerry’s, LMVH and H&M Group are a part.

Canopy works to divert pulp and paper production away from ancient and endangered forests, instead promoting “NextGen” materials created from landfilled waste and agricultural residues. The new funding will completely eradicate the use of ancient and endangered forests for packaging production and avoid emissions rates similar to that of Germany, claims the organization. 

Nicole Rycroft, Canopy’s executive founder and executive director, says: “Innovative low-carbon solutions, such as regenerated cellulosic fibers from waste textiles or agricultural residues, are showing the potential to reduce our impact on climate and protect forests, so no ancient and endangered forests are put at risk to make fashion.” 

“Canopy’s creative, collaborative and transformative work will be key in driving supply chain change at scale and, in turn, provide a reprieve to critical forests that are under current and future threats within the next decade and beyond.” 

Conserving and restoring forests has been identified as a major part of the solution to the growing climate crisis. Forests are a significant carbon sink, absorbing a net 7.6 billion metric tons of CO2 yearly – 1.5 times more carbon than the US emits annually, according to Canopy. 

Despite this, over 5 billion trees are cut down yearly for paper, packaging and fashion fabrics alone, many from the world’s oldest, most carbon- and biodiversity-rich forests, says Canopy. 

NextGen fiber materials are sourced from agricultural waste and landfill.Renewable Rebellion
Innova Market Insights this year pegged “Renewable Rebellion” as a top packaging trend for 2023, noting that fluctuations in oil and gas prices, coupled with consumer demands for fossil fuel-free materials, are continuing to drive producers toward renewable materials like pulp and paper. 

However, much of the pulp and paper industry still relies on wood-based fiber, which can pose an even greater threat to the environment than petrochemical production. Canopy spoke with PackagingInsights last year about how plantation forestry for the paper industry causes droughts, wildfires and swallows huge amounts of energy. 

Tamara Stark, campaigns director of forest conservation network Canopy, said that “companies making the necessary shift from plastic but choosing to replace that with paper packaging are trading one environmental disaster for another.” 

With the new funding, Canopy says it will accelerate commercial-scale production of packaging solutions that don’t rely on pulp from ancient or endangered forests. Instead, its Next Gen solutions are derived from agricultural residue or textile and food waste that would otherwise be landfilled. 

Next Gen solutions 
Next Gen alternatives have, on average, 95% to 130% less GHG emissions, 88% to 100% less land use impacts, and five times lower impact on biodiversity, claims Canopy. 

By 2033, the organization aims to:
● Unlock over 60 million tons of NextGen fiber production.
● Avoid over 1.3 billion tons of emissions – almost twice the annual emissions of Germany.
● Divert nearly 800 million tons of agricultural residue and waste textiles from being burned or landfilled – equivalent to the weight of 7,000 Eiffel Towers.
● Completely eliminate the use of ancient and endangered forests in the paper, packaging, and fashion viscose supply chains. 

“The audacious work being done by Canopy is not only transforming carbon-intensive supply chains at a critical juncture for our planet but with a network of engaged and willing partners, some truly exciting and innovative solutions can now be delivered at scale,” says Anna Verghese, executive director at The Audacious Project.

“We are excited about the change they will catalyze over the coming years with this surge in support.” Housed at TED, The Audacious Project annually selects a group of “bold solutions to the world’s most urgent challenges.” 

By Louis Gore-Langton