Canopy Launches Historic $2 Billion Finance Plan to Scale Next Generation Materials
Davos - 21 January 2026 – Environmental not-for-profit Canopy has today unveiled a landmark $2 billion financing initiative designed to accelerate the production of Next Generation materials.
This significant capital injection focuses on scaling alternative fibres to replace wood pulp in textiles and paper packaging, with an initial rollout targeting the burgeoning market in India.
The move signals a critical shift towards sustainable supply chains, offering a robust solution to the fashion industry's reliance on ancient and endangered forests.
The initiative addresses the urgent need to decouple the textile and packaging industries from forest degradation.
“With these targeted structures in place, we can drive the investment needed to turn waste into high-value and circular everyday commodities,” said Zoë Caron, Canopy’s Strategic Lead, Global Investments for Canopy. “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.”
By directing investment toward Next Gen solutions—technologies that utilise agricultural residues and waste textiles instead of virgin wood pulp—Canopy aims to safeguard the planet’s vital ecosystems while fostering economic growth in the green technology sector.
This financial vehicle is positioned to bridge the gap between innovation and commercial scale, a hurdle that has historically slowed the adoption of sustainable materials.
India has been selected as the launchpad for this ambitious project due to its unique position as a global textile hub with abundant availability of agricultural residues.
This dual advantage provides the necessary raw materials and manufacturing infrastructure to rapidly scale production.
The success of this finance plan in India is intended to serve as a scalable blueprint for other regions, demonstrating the viability of circular economy models on a global stage.
“This is the future Canopy is designing for. By aligning early catalytic capital with public and private capital, this model is built to move the entire ecosystem from readiness to scale, crowd in institutional investment, and accelerate industrial manufacturing, processing, and upstream feedstock capacity.” Nicole Rycroft : Canopy
The funding mechanism seeks to attract a diverse array of investors, including brands, philanthropic donors, and financial institutions, creating a blended finance model that de-risks early-stage projects.
By proving the commercial efficacy of these alternative fibres in a major market like India, Canopy anticipates catalysing further investment across the Global South and beyond, effectively transforming the material sourcing standards of the global fashion industry.
About Canopy
Canopy is a solutions-driven environmental nonprofit dedicated to protecting the world’s forests, species, and climate.
Working with 1,000+ global brands, Canopy drives transformative action to eliminate the use of Ancient and Endangered Forests in packaging and textiles while scaling Next Gen solutions.
Through our dedicated work and strategic partnerships, Canopy is showing that we can transform global supply chains from ‘take, make, waste’ to create a circular, more sustainable future.
