By Kirkbi Plans Major Plastics Recycling Push as EU Rules Tighten
Kirkbi Climate plans to double its $1.6 billion investment portfolio over the next five years, with plastics recycling set to become a major focus as European packaging regulations create stronger demand for recyclable materials and technologies.
By Paul Ploumis
Published September 11, 2026
Key Points
- Kirkbi Climate plans to double its $1.6 billion portfolio over the next five years.
- Plastics recycling is expected to become one of the unit's major investment priorities.
- EU packaging rules are increasing investor confidence in the long-term economics of recycling.
- Kirkbi Climate currently manages 10 billion kroner and expects future investment to be roughly split between energy and recycling.
- The fund is seeking larger ownership positions that provide greater influence over portfolio companies.
SEATTLE (Scrap Monster): The fund managing the wealth of the Danish billionaires behind Lego A/S intends to significantly increase its investment in plastics technologies as Europe moves toward stricter recycling requirements.
Kirkbi Climate plans to double the size of its $1.6 billion portfolio over the next five years. Plastics recycling will be “an area where we plan to invest heavily,” Anupam Bhargava, chief executive officer of Kirkbi Climate, said in an interview.
EU Packaging Rules Strengthen Investment Case
The European Union has set a 2030 target for packaging to be recyclable under its Packaging and Packaging Waste Regulation, or PPWR. The rules form part of a broader effort to reduce waste and carbon emissions across the bloc.
The regulatory framework will create greater confidence that the recycling market can mature over time, Bhargava said.
“We can dive in knowing that the market economics don’t work today, but if there’s no chance for the market economics to ever work, then that’s very difficult,” he said.
EU estimates indicate that around 35 kilograms, or 77 pounds, of plastic-packaging waste is generated per person each year, much of it produced from imported fossil fuels.
Plastics recycling has struggled to attract sufficient investment because low-cost petrochemical production has often made virgin resin cheaper than recycled alternatives.
Fragmented Recycling Market Remains a Challenge
Bhargava cautioned that there is currently no single recycling technology investment capable of delivering exceptional results on its own.
Companies in the sector operate within “a value chain that is currently highly fragmented and not very efficient,” he said.
With regulatory deadlines approaching, however, “the industry needs to get ready now,” Bhargava added.
Kirkbi Climate Plans Larger, More Active Investments
Kirkbi is the holding company of the Lego group. The company managed 189 billion kroner, or approximately $29 billion, in assets as of year-end.
Kirkbi Climate, which invests in the energy transition and land use in addition to plastics recycling, has 10 billion kroner under management.
Future investments are expected to be split roughly between energy and recycling, with plastics and a selected group of European Union countries among the areas of focus, Bhargava said.
After more than a decade of climate investing, the fund is taking a more active approach and seeking positions in companies large enough to give it “real influence” on boards.
The shift follows a decision last year to separate climate investments into a dedicated unit.
“The idea for the family was that if we’re going to help solve climate at scale, then we need to be a business builder,” Bhargava said. “And that means investing in a very different way.”
Courtesy: www.spokesman.com
