A new grant initiative is offering up to $50,000 per recipient to improve how compostable food packaging is recovered, sorted, and processed. The program is backed by the Composting Consortium, a multi-stakeholder group led by the Center for the Circular Economy at Closed Loop Partners. Designed to support upstream solutions, the funding targets recovery efforts for certified food-contact compostable packaging, with a strong emphasis on applications within foodservice settings.
The program arrives as the sector faces rising costs and pressure to divert packaging waste from landfills. For restaurant operators and foodservice distributors exploring compostable packaging as part of their sustainability strategy, the grant provides new incentives to close infrastructure and operational gaps that hinder full-scale adoption.
Compostable Packaging Recovery Remains Fragmented
While compostable packaging has gained popularity across restaurant chains and caterers, particularly as a replacement for petroleum-based materials, effective recovery remains inconsistent. Infrastructure limitations, contamination issues, and limited access to commercial composting facilities often prevent these materials from being diverted from landfill waste streams.
The Composting Consortium’s grant initiative aims to address those structural issues by supporting pre- and post-consumer recovery programs, collection systems, and sorting technology upgrades. The focus is specifically on packaging that meets food-contact standards and is certified compostable by BPI or TUV.
By narrowing the scope to certified food-contact items, the initiative seeks to remove ambiguity around material types, a common barrier for both operators and recovery facilities.
Eligible Applicants Include Operators, Composters, & Haulers
The grant is open to a range of entities involved in the compostable packaging lifecycle, including:
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Foodservice operators (e.g., restaurants, cafeterias, quick-service chains)
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Composting facilities and commercial haulers
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Local municipalities and material recovery facilities
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Packaging manufacturers and related industry groups
To qualify, applicants must demonstrate a clear strategy for increasing recovery volumes of certified compostable food-contact packaging. Proposals can include projects that expand access to composting collection, improve source separation, or invest in technologies that better sort compostables from mixed waste streams.
Focus On Scalable, Replicable Solutions
The Composting Consortium is prioritizing projects that can be scaled or replicated across regions and sectors. Recovery solutions that show potential to inform policy, influence packaging design, or enhance data collection will be evaluated favorably.
Applications are due June 14, 2025, and the Consortium expects to award funding by summer. Each grant will range from $25,000 to $50,000, depending on project scope and expected impact.
The Consortium will also offer technical support and knowledge-sharing opportunities to grantees throughout the project period.
Sector Alignment On Compostable Packaging Standards
Participating organizations in the Composting Consortium include leading consumer brands, composters, and NGOs, such as Mars, PepsiCo, Colgate-Palmolive, and the Biodegradable Products Institute. Their joint involvement reflects growing cross-sector alignment on the need for standardized materials and recovery pathways.
For foodservice operators, the grant program represents a step toward more integrated packaging and waste management solutions—particularly in light of upcoming regulatory shifts and evolving consumer expectations.
