Scaling Circular Finance and Investment Strategies

This document is a report on scaling circular finance, emphasizing the urgent need to address the USD6.5 trillion funding gap in the circular economy. It outlines four critical levers necessary for unlocking investment at scale, which include recognizing the circular economy's role in achieving climate and nature targets, agreeing on definitions and measurement standards, integrating circularity into financial risk models, and advocating for harmonized international regulations. The report details the significant potential of the circular economy to enhance economic resilience and competitiveness while reducing greenhouse gas emissions. It highlights the growing interest from governments and businesses in circular solutions, noting that over 70 governments are implementing relevant policies. Despite this progress, mainstream adoption remains limited, with challenges such as linear lock-in and transition costs hindering rapid implementation. The report also discusses the importance of circularity for developing countries, where it can significantly contribute to achieving the UN Sustainable Development Goals.