About the Project

UNEP FI, in collaboration with CTCN, GO4SDGs, and the BASE Foundation, is implementing a circular economy (CE) finance project across Chile, Costa Rica, the Dominican Republic and Uruguay.

The goal: Empower financial institutions to scale up CE investments, particularly benefiting micro, small, and medium-sized enterprises (MSMEs), by addressing systemic barriers, improving taxonomy integration, and building internal capacities of financial institutions.

 

Project Structure

The project is structured around three interrelated components that respond to institutional, regulatory, and operational needs within financial ecosystems.

Objective: Develop a comprehensive understanding of each country’s circular economy landscape, identifying opportunities, challenges, and actors to guide strategic financial interventions. Key Outcomes:

  • Mapping of existing CE actors, sectors, and regulatory frameworks
  • Gap analysis between current financial practices and CE potential
  • Identification of bankable CE sectors and value chains
  • Action-oriented recommendations for financial institutions and policymakers

Outputs:

Objective: Create standardized categorization systems that align with national sustainable finance taxonomies, improving the traceability, comparability, and credibility of CE-related financial flows. Key Features:

  • Structured around CE principles: design out waste, keep materials in use, regenerate natural systems
  • Compatible with sustainable finance taxonomies and climate finance frameworks
  • Includes sectoral tags, eligibility criteria, and project types (e.g., waste-to-resource, circular agriculture, product-as-a-service models)
  • Developed collaboratively with ministries, financial regulators, and regional experts

Expected Impact:

  • Enhanced capacity of financial institutions to classify, report, and scale CE investments
  • Improved alignment with climate, biodiversity, and sustainable development goals
  • Facilitation of green bond issuance and targeted credit products for CE initiatives

Outcomes:

Sistema de Categorización para el financiamiento circular en Chile

Sistema de Categorización para el financiamiento circular en Costa Rica

Sistema de Categorización para el financiamiento circular en República Dominicana

Sistema de Categorización para el financiamiento circular en Uruguay

Training Modules Cover:

  • Introduction to CE concepts and business models relevant to finance
  • Strategic and operational implications of circular finance
  • Internal procedures for screening, classifying, and monitoring CE investments
  • Case studies and practical tools for product development (e.g., CE-linked loans, CE project pipelines)

Delivery Format:

  • Blended learning: virtual sessions, in-person workshops, and field visits
  • Customized per country context and participant maturity
  • Developed jointly with UNEP FI experts, local CE specialists, and sustainability agencies

Outcome Focus:

  • Integration of CE metrics and criteria into lending portfolios
  • Formation of internal task forces or CE champions within banks and cooperatives
  • Enabling dialogue between financial actors, policymakers, and CE entrepreneurs

 

Project Outputs

Diagnostics:

    Categorization Systems:

    Sistema de Categorización para el financiamiento circular en Chile

    Sistema de Categorización para el financiamiento circular en Costa Rica

    Sistema de Categorización para el financiamiento circular en República Dominicana

    Sistema de Categorización para el financiamiento circular en Uruguay