The circular economy has strong potential to build resilient, competitive and inclusive economies by redirecting capital toward business models that preserve value, reduce dependence on natural resources, and generate long-term economic and financial returns, alongside environmental and social benefits. Realizing this potential, however, requires a significant scale-up of financing and a system-level approach that enables solutions to be deployed at scale across value chains and geographies. 

This paper outlines a structured approach to unlock circular economy financing by making circular economics work and strengthening evidence of the circular economy’s value proposition. It sets out complementary roles and possible actionable priorities for governments, financial regulators and central banks, public and private financial institutions. Additionally, it uses examples illustrating real-world implementation and scalable models. 

Co-developed by UNEP FI and the Global Alliance on Circular Economy and Resource Efficiency (GACERE) — an alliance of UN Member States whose operations are supported by UNEP and UNIDO — the report contributes to embedding circularity within financial systems and accelerating the global transition to a circular economy. It complements UNEP FI’s broader set of circular economy resources and supports engagement and collaboration across sectors to align financial flows with resilient, competitive, and resource-efficient economies.