Financing Circularity: Demystifying Finance for Circular Economies

Circular economy strategies can be achieved using such financial instruments as green bonds, green loans, sustainability-linked loans and circular leasing.  Sustainability-linked finance calls for innovative business models and financing that integrates circularity in discrete development projects and for general corporate purposes.  Corporate Social Responsibility (CSR), Sustainable and Responsible Investing (SRI) and Environmental, Social Governance (ESG) can embed circularity into the financing to encourage the 9-R behaviors of reduce, reuse, recycle, recover, redesign, remanufacture, refurbish, repair and refuse.   Sustainable financing can be structured to accelerate the urgent transaction from a take-make-waste model of resource use to a circular economy.