ACR+

The transition to a circular economy is at an early stage in the EU. Regulations, markets, investment tools and practices, including financial risk assessment, are adjusted to linear models. Externalities linked to linear business models are largely not taken into account. This poses a problem for the emerging circular models, which have to contend with the challenge of accessing finance, as the financial sector sees circular projects as highly risky and often not bankable. To improve the conditions for financing circular economy projects, the Expert Group on Circular Economy Financing analysed barriers and identified the main areas where incentives need to be provided. The recommendations are addressed to three stakeholders groups — policy makers, financial institutions and project promoters.