Circular Economy Investments Bring Social, Economic and Environmental Benefits

The report presents 20 detailed case studies from around the world and a variety of areas ranging from waste management and food to the construction sector, plastics, textiles, battery recycling and the recovery of critical raw materials. The case studies provide a snapshot of the MDBs' support to the circular economy that spans advisory services, financial support to governments, private-sector investments and backing to the financial sector.

Drawing on the case studies, the report provides six key insights:

•  Far from being limited to high-income countries, circular economy investments are gaining ground globally, including in middle- and low-income countries, despite an uneven policy framework.
• As a group, MDBs provide a wide range of products to develop and support the circular economy from tailored loans and investments to advisory support.
• The private sector is actively engaging in circularity, but a more conductive regulatory framework is needed to take full advantage of the opportunities of the circular economy.
• Cities can incubate innovation and drive action.
• The financial sector plays a crucial role in improving access to finance for circular businesses but needs guidance on how to seize this opportunity.
• Circular economy interventions by the MDBs must actively involve and support the most vulnerable populations and the informal sector.

“The African Development Bank recognizes the transformative potential of circular economy to generate youth employment and ecological benefits through regenerative practices and efficient resource use. Through the Africa Circular Economy Facility (ACEF), the Bank is committed to continue to empower African countries to harness the numerous opportunities of the transition to circularity,” emphasized Dr. Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank .

Gianpiero Nacci, Director of Sustainable Business and Infrastructure at the EBRD said: "This report is a testament to the growing collaboration among MDBs, now extending into the circular economy. As a group, we aim to help businesses reduce waste, enhance resource efficiency, and build resilient supply chains. At the EBRD, we are committed to driving innovation in circular solutions across our regions."

"The circular economy represents a powerful shift, enabling growth within our planet's limits,” said Ambroise Fayolle, EIB vice-president responsible for financing environment, climate action and the circular economy, “It calls for bold partnerships and shared knowledge to drive and scale up impactful solutions. As the European Union's climate bank, the EIB is committed to stepping up its support for investments worldwide in climate action, environmental sustainability and the circular economy.”

In their shared vision presented at the World Circular Economy Forum in Brussels in April earlier this year, the MDBs' Working Group committed to promoting the exchange of knowledge with the private sector, civil society, and local, regional and national authorities. The members of the MDB Working Group are: the Asian Development Bank (ADB), the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank and IDB Invest and the World Bank Group (World Bank and IFC).