Accelerating the Transition to the Circular Economy
Summary
Improving Access to Finance for Circular Economy Projects
The transition to a circular economy requires a radical change in the way we produce and consume.
In a circular economy, products are designed for durability, upgradeability, reparability and reusability, with a view to reusing the materials from which they are made after they reach the end of their life. In the use phase, products are managed with a view to maximising their utilisation capacity and extending their useful life, thus maintaining their value for as long as possible. This is made possible by companies that develop new business models generating revenue streams from services rather than products while making a more efficient use of resources and/or giving new value to end-of-life products and materials.
This paper proposes three sets of recommendations that, if implemented, should together provide a framework that significantly improves access to finance for circular economy projects. The actions range from rather technical and short-term measures, e.g. to develop a definition of circular economy projects, to long-term and complex measures involving legislative changes at EU and national level. However, these recommendations should be seen as a whole, addressing the main problem — the risk associated with circular economy projects — from different perspectives and by different actors.