Nordic Roadmap for Circular Financing

Project Background 

The circular economy is essential for tackling the environmental and climate crises, yet many financial institutions lack the knowledge and frameworks necessary to support circular business models. Circular ventures often face barriers such as longer payback periods and inadequate risk assessments due to the unfamiliarity of these models in traditional financial systems. This roadmap, inspired by similar Dutch efforts, aims to bridge this gap by providing actionable steps for integrating circular finance.@

Project Goals

The roadmap sets a long-term vision of establishing a financial market that supports a regenerative and inclusive economy. By 2030, the goal is for financial actors to fully integrate circular financing into their risk assessments, credit processes, and investment strategies. This includes building capacity and knowledge within the financial sector, implementing circular risk models, and creating new investment products specifically designed for circular business models.

Key Activities

Knowledge and Capacity Building: Engage and educate financial actors on the benefits and opportunities of circular financing, while seeking broader international collaboration.
Debt Financing: Integrate circular assessments into banks' credit processes and develop risk-sharing mechanisms for circular businesses.
Equity Financing: Implement circular due diligence frameworks for investors, focusing on long-term returns and sustainability metrics.
Whitepaper Publication
In October 2023, the project published a comprehensive whitepaper detailing its findings on the challenges and opportunities in circular financing. The report highlights best practices, case studies, and actionable recommendations to accelerate the adoption of circular finance models across the Nordic region.