A study will be commissioned in the next few months to work out how the funds would be put to use, but the key organisations involved will be WRAP, Remade Scotland, Scottish Enterprise and Highlands and Islands Enterprise.
Speaking to the Scottish Waste Strategy Advisory Group, Scottish environment minister Ross Finnie said the money was a “very important” part of September's 170 million Scottish budget for waste management.
Mr Finnie said: “There is no point in local authorities or businesses carrying out recycling if there is no use which can be made of the materials produced from recycling. The money we have announced today will help businesses identify new opportunities to exploit recycled products and increase demand.”
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