There is a growing feeling of urgency about moving towards a more sustainable economy, as illustrated by the Sustainable Development Goals and Paris Agreement. The circular economy is proposed as a solution for today’s environmental challenges, such as climate change.
In 2015 we published ‘Rethinking finance in a circular economy’. It gained a lot of traction in unchartered territory. We focussed our analysis on opportunities. It helped us, and many partners, to understand the concept much better. Now, five years later, it is time to take the next step. But we face a situation where reality bites: if anything, the world is becoming less, not more circular.
This report helps us to understand what is happening. It takes a new look at the circular economy. Firstly, it proposes seeing the circular economy as a means to an end, a way of causing less environmental harm. Secondly, we must face the strength of opposing forces. Thirdly, the business needs the policy to tango. And finally, the financial sector will have to step up its ingenuity to help scale up the circular economy