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.