Focus: Don't let waste go to waste

Fresh technologies are being accompanied by new approaches to financing in the sector. New Earth Solutions raised more than £10m to support the roll-out of its technology through a fund it launched for experienced investors last year. Institutional investors now have the opportunity to access the company's composting and energy from waste projects through a new fund launched in March. Approaches like these circumvent the problems associated with the Private Finance Initiative, which has proved to be a costly and slow-moving way of financing waste-management solutions.

Investment opportunities can also be found further up the manufacturing chain when considering ways to minimise waste creation. This is an area where specialist environmental investment company Ludgate Environmental Fund is active. It has invested in Rapid Action Packaging, a company that designs and manufactures environmentally responsible food packaging. The packaging is compostable, recyclable and used by large retailers.

Packaging is increasingly seen as a leading contributor to waste streams, and the market is experiencing a shift in demand away from plastic towards more responsible materials.

Waste management is emerging as one of the few 'good-news' stories of the recession thanks to a number of pioneering companies offering flexible and sustainable solutions to an age-old problem - and investors can be reassured they are not simply throwing away their money.

Lucy Evans is a researcher at Carbon International