Financing the Circular Economy: Four Elements of Success

Abstract

The transition to the circular economy, from start-ups to multinationals, can only be realised if there is enough financing available. However, financial institutions and investors are only likely to finance profitable solutions, measured within time-honoured linear economy thinking. In this qualitative study, we argue that looking at simply the business case is a singular, static view whereas the economy is a complex, adaptive system. Hence, in addition to the business case, we are adding three more elements we consider indispensable for the circular economy transition to initially succeed and thereafter remain sustainable. These are infrastructure, education, and mindset.