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Accelerating the transition to the circular economy - Improving access to finance for circular economy projects

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A report by the Informal Commission Expert Group “Support to Circular Economy Financing” (E03517), This report has greatly benefited from the comments and contributions by Arnold Verbeek, Christian Schempp, Gianpiero Nacci, Philip Marynissen, Frido Kraanen, Rebeka Kovacic and Laura Busato.
Publication Date: 
March, 2019
Country: 
EU

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The transition to a circular economy is at an early stage in the EU.

Regulations, markets and investment tools, including financial risk assessment, are adapted to linear models. Generally speaking, externalities linked to linear business models are not taken into account. This poses a problem for emerging circular models, which have to contend with the challenge of accessing finance, as the financial sector sees circular projects as highly risky.

To improve the conditions for financing CE projects, the Expert Group on Circular Economy Financing identified the main areas where incentives are needed, addressing recommendations to policy makers, financial institutions and project promoters.

See also: Categorisation system and Incentives to boost the CE reports