Financing the Circular Transition

Our current economic system is based on the take – make– waste principle. It is characterized by little regard of environmental or social outcomes and a persistent focus on short-term monetary results. As part of this economic system the financial sector follows suit and is broadly interested in linear business endeavours using tools that were developed exactly for take-make-waste economy. Circular models remain largely underfunded, representing significant untapped potential and a missed opportunity to build a more resilient financial sector. Circular investments represent just 2% of all tracked capital according to one of the analyses1. It seems that the financial sector is still reluctant to facilitate the circular transition, perhaps because of the perceived higher risk, longer return on investment or additional regulatory burden that is often connected with preferential financing. We will address this topic during the Financing a Circular Transition event during the Circular Week 2025 with additional questions such as: • The benefits and barriers of financing circular business endeavours for the financial sector. • The simplification of circularity assessment to make use of preferential financing tools. • The financial sector possible evolution to better suit circular economy requirements. • Already available financing tools and the ones that are still missing. • Synergy between circular financial tools and other supporting measures such as public procurement, economic incentives, etc. There is no doubt that our economy is in need of financial products that enable circular transition. However, as long as financial institutions will perceive the circular economy financing only as a strategy to face growing pressure from the public, as well as from shareholders, to act on climate change and not as a rational economic decision, financing circular businesses will still be niche. Let us identify steps that lead to circularity financing becoming mainstream! 1Circle Economy (2025): Circularity Gap Report (CGR®) Finance. Agenda 10:00 – 10:10 | Welcome and opening remarks • Hubert Bukowski (Innowo) – introduction to the topic and program of the event. 10:10 – 10:50 | Inspirational presentations • 8 minute presentation by each panelist on their institution’s current approach to financing circular endeavors and its future. 10:50 – 11:25 | Panel discussion Moderator: Hubert Bukowski (Innowo) Topics: • The benefits and barriers of financing circular business endeavours for the financial sector. • The simplification of circularity assessment to make use of preferential financing tools. • The financial sector possible evolution to better suit circular economy requirements. • Already available financing tools and the ones that are still missing. • Synergy between circular financial tools and other supporting measures such as public procurement, economic incentives, etc. • Circular vs. linear businesses profitability and its consequences for financing 11:25 – 11:30 | Q&A and final remarks