Biobased & Circular economy
Kopgroep Circulair Financieren : Shaping the standard together with the financial sector
Approach
Market developmentDate
November 16, 2023Reading time
4 minutesOur raw materials are scarce. That's a fact. The current linear model is a linear path to loss. The future demands innovation, without compromise. The future requires patient capital, without waiting. And for that, we need to act today, not just observe.
Groundbreaking innovation requires knowledge, expertise and a network to scale up. That is why Invest-NL and the Ministry of Infrastructure and Water Management have brought together the frontrunners from the financial sector. From the financial sector, we are leading the way in circular financing. Our goal is clear: making the Netherlands a frontrunner in the circular economy of the future, with circular financing as the standard by 2030.
We are shaping tomorrow's standards today. Where we are heading is clear; how we get there we create together. We bring together people from diverse backgrounds who are leading in the manufacturing sector, in order to realise a financing strategy. We do this not alone, but together with governments, regulators and supervisory authorities.
Invest in tomorrow, don’t waste it. We do not waste raw materials, capital and time to make the Dutch economy a leader in the circular world. Waiting is no longer an option.
There is an increased risk perception among banks when it comes to circular companies investing in circular production processes, whereas in fact linear companies are the risks of the future. By replacing linear risk models with circular ones, banks can offer more financing options to circular companies.
Rob van WilligenSustainability Expert ABN AMRO
Circular financing of vital importance to drive the transition towards a circular economy
Making the transition to a circular economy financeable is the highest priority for Invest-NL. This urgency means that we cannot wait until we know everything for sure and can assess and evaluate all risks. We must make proposals financeable now, even if they do not yet seem so. The circular future calls for uncompromising innovation, patient capital, entrepreneurs striving for limitless longevity, and circular commitment from the financial sector. To accelerate the circular transition, Invest-NL has already financed and/or made various companies and projects financeable.
Read more about what we do for the transition to a circular economy.
The best way to predict the future is to create it ourselves
The Circular Financing Leading Group 2030 is a transition network for people in the financial sector who are already pioneering in circular finance. But who also share the ambition to get the entire financial sector onto the circular track, together with regulators and ministries. They work together on innovative models to explicitly incorporate circular risks into financing decisions. Or to better estimate risks and find securities in future cash flows, supply chain collaboration, or contracts using uniform circular ‘metrics’.
Another key pillar of the leading group's approach is inspiring and learning. Seeking proof, techniques, and data to take the step into the future, circularly financed companies and projects within the Leading Group are highlighted so that there is more and better insight. The stories emerging from this are used to connect with colleagues in the sector who may already understand the importance of circularity but do not yet feel sufficiently confident to make their mark on it today.
The Kopgroep Circulair Financieren is a unique and powerful public-private partnership. It brings together the innovators who want to make circulair financing the norm. Our approach is cohesive, but definitely also hands-on. The emphasis is on Action! As Circulair Hero 2023, I am proud of what the Kopgroep has achieved so far and I find it fantastic to facilitate this collaboration.
Hilde SijbringCircular Hero 2023 and founder of Circular Finance Lab
Where Invest-NL makes the difference in this case
Invest-NL is committed to circular businesses and investment funds through investments, proposition guidance, and the development of financial instruments. With the Kopgroep Circular Finance initiative, we are taking the lead to accelerate the funding options for circular enterprises.
Invest-NL has been active in financing circular propositions since its inception in 2020. The intensive collaboration with this diverse group of financiers and investors has generated knowledge, networks, and experience. And that makes - the Circular Finance Leadership Group - a unique transition network. This way, we make things financeable that often still seem unfinanceable today.
Anne Mieke van der WerfDirector Business Development Invest-NL and Chair of the Circular Financing Roundtable
Questions about this topic? Anne Mieke is happy to help!
Anne Mieke van der Werf
director business development
