Circular Economy Finance Guidelines
ABN AMRO, ING and Rabobank, all members of the FinanCE working group alongside FGGM and the Ellen MacArthur Foundation, have published the first publicly available finance guidelines for the circular economy in July 2018 as input to the High-Level Political Forum on Sustainable Development.
These guidelines aim to promote and develop the role finance can play in the transition, beginning with a definition of the circular economy and circular economy finance. These banks perceive the latter as being "any type of instrument where the investments will be exclusively applied to finance or re-finance, in part or in full, new and/or existing eligible companies or projects in the circular economy". The guidelines themselves have four core components:
- Use of investments
- Process for Project Evaluation and Selection
- Management of Investments
By making these guidelines publicly available, these three Dutch banks are encouraging other financial institutions to follow suit and stimulating the development of a common understanding of the circular economy in the European financial sector.