We are building an investment policy towards circular economy. We seek investment budgets to scale up strong projects. We explore the possibilities of working with a circular economy fund and make the link to the European incentive and investment policy.
In theory, we have the wind at our backs for this. In the financial sector, the focus on circular economy is growing. The EU taxonomy for sustainable activities and the growing focus on ESG in finance and financial products are illustrations of this.
There are, of course, bottlenecks:
Sometimes the transition of companies from linear to circular activities is gradual, so financial institutions do not rate them as circular. Result: the file falls under the 'classic' credit assessment and does not come out favourably.
Sometimes a circular dossier is very innovative, but then there is no track record, no cash flow, uncertain parameters ... Result: the file is assessed as too risky and does not come out favourably from the assessments.
Therefore, with our lever, we want to contribute to an appropriate and watertight assessment of a circular finance file. To this end, we include the entire value chain in the assessment, provide circular metrics and link to a battery of support measures for circular business.
KPMG conducted a study on behalf of Flanders Circular on the financing of circular projects in Flanders. Also thanks to the commitment of financiers, circular entrepreneurs and policymakers, a supported roadmap was drawn up which, in the context of leverage financing, will be translated into a concrete agenda to be implemented. Knowledge and experience exchange between circular entrepreneurs, financiers and policymakers are central in this to, on the one hand, make circular projects more financeable and, on the other hand, better align the financing offer with the peculiarities of different types of projects that want to realise sustainable value creation via circularity strategies.