The circular economy concept is gaining attention as the consumption and use of resources increases to serve a fast-growing population with rising standards of living. Circularity refers to the circular flow and efficient use and reuse of resources, materials and products.
The EU has been at the forefront in pushing this new economic model, which also represents sustainable green growth, moving from a consumption and disposal-based linear model to a system that extends the life of products and materials and minimises waste. The circular model has many environmental, climate, social and economic benefits.
The circular economy is backed strongly by the European Commission and other EU institutions, as well as by a growing number of cities and countries across the European Union. It is also attracting increasing attention from the business community and public and private investors.
In this context, and as part of the EU’s efforts to support Member States in restarting their economies in the wake of the pandemic, the European Investment Bank is supporting the transition to a circular economy, particularly in the European Union, but also in other parts of the world. The EIB has a long track record of lending to projects focusing on recycling and the recovery of waste and by-products in various sectors.
In a statement, the Bank said that it “aims to increase lending to innovative circular economy projects aimed at systematically designing out waste, extending the life of assets and closing material loops.”
For this purpose, the EIB has published a guide to promote a common understanding of the circular economy as well as the challenges and opportunities among our financial and project partners. It also aims to raise awareness about circular solutions among project promoters and other stakeholders and facilitate and harmonise due diligence and reporting related to circular economy projects with our financial and project partners.