Most businesses underestimate the real potential of circular economy activities to boost profitability and secure financing. At the same time, financial institutions are eager to fund the sector — but both sides often struggle with clarity on what qualifies for investment beyond traditional recycling models. Scaling the circular economy requires more than good intentions: it demands clear policies, strategic partnerships, and financial risk mitigation and incentives that tackle key bankability challenges.

With a growing number of circular economy finance guidelines emerging worldwide, harmonization is the key to unlocking a shared understanding between companies and investors. Harmonized Circular Economy Finance Guidelines aims to help investors, financial institutions and private companies identify and quantify opportunities to channel financing to projects that support a circular economy. It provides guidance to identify activities that are eligible for circular economy finance.