Most businesses underestimate the real potential of circular economy activities to boost profitability and secure financing. At the same time, financial institutions are eager to fund the sector — but both sides often struggle with clarity on what qualifies for investment beyond traditional recycling models.
Scaling the circular economy requires more than good intentions: it demands clear policies, strategic partnerships, and financial risk mitigation and incentives that tackle key bankability challenges. With a growing number of circular economy finance guidelines emerging worldwide, harmonization is the key to unlocking a shared understanding between companies and investors.