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Categorisation system for the circular economy

European Commission
Author: 
Peter Hirsch (editor), Christian Schempp (editor)
Publication Date: 
March, 2020
Country: 
EU

Language for original content:

Contact: 
Janneke van Veen
Contact publications

The lack of a commonly accepted, inclusive definition of and methodology for measuring circularity are hindering the transition to a more circular economy (CE). These two factors obstruct the development of and access to dedicated or non-dedicated finance, credit risk assessment and the transferability and replicability of projects and investments across regions and jurisdictions.

The Expert Group on Circular Economy Financing proposes a sector agnostic CE categorisation system that defines categories of activities substantially contributing to a CE. A set of minimum criteria must be met for activities to be considered as substantially contributing to a CE. Guidelines with an indicative list of typical investments/projects for each CE category are included.