Addressing finance risk and infrastructure gaps to support investment in circular economy business and activities.

Finance and investment are critical enablers for the circular economy, mobilizing capital to support business and community efforts while addressing critical infrastructure gaps. Engaging with financial institutions, addressing risks, and improving returns will take a coordinated effort, but must be aligned with business and community priorities.

CELC is working to identify key risks for investors, help financial institutions better understand the needs of circular businesses to enhance lending, investment solutions, and financing options (e.g., microloans, low-interest loans, innovative leasing, etc.), and expand sustainable finance taxonomy work in Canada to include circular economy considerations.

Related to this, CELC released a Guidance Document on Financing the Circular Economy in 2024, developed in collaboration with UNEP FI, Ivey School of Business, Delphi Group, and several Canadian banks and credit union partners.

Work is also underway to identify critical infrastructure to support the circular economy and the potential funding and investment sources to address gaps.