Jumpstarting the Circular Economy through innovative financing

In an important step towards a more sustainable future, the Circular Finance Lead Group announced the launch of an open source scorecard that can be used to promote financing from a circular perspective in the Netherlands. As a core member and chair of this lead group, Invest-NL plays a significant role in the mission of the core group to make circular financing the norm by 2030.

Since its establishment in 2020, Invest-NL has focused on financing circular propositions. Through collaboration within the Circular Financing core group, Invest-NL has not only gained valuable knowledge and experience but also developed a unique network of leading financial institutions that enables Invest-NL to finance a circular future.

Why finance circularly?

The circular economy aims to minimise the use of new raw materials, maximise reuse, and close the production and consumption loops. This is not only crucial to stay within the ecological limits of our planet, but also makes the Dutch economy less dependent on raw materials from elsewhere in the world. Financiers and investors are the driving forces behind this transition, and Invest-NL is at the forefront of this movement.

The role of the scorecard

The newly developed Circular Risk Scorecard can assist in transitioning to a circular economy. It enables financiers to explicitly consider the risks and opportunities of circular entrepreneurship in their financing and investment decisions. This is, in itself, a gamechanger, as it can alter the perception of risks associated with circular companies and provide more financing options for these entrepreneurs.

Replacing linear risk models with circular ones allows us to build a more sustainable future. The launch of the scorecard is just a step in this direction, but a crucial one that Invest-NL is proud to support. The Circular Financing core group, with members ranging from financial institutions to strategic partners, demonstrates that collaboration is essential.

About the Circular Financing core group

The Circular Financing core group was founded in 2021 under the Platform for Sustainable Financing of De Nederlandsche Bank. The core group adopts a project-oriented approach based on the core values: action, connection, and anticipation. Members of the Circular Financing core group, besides Invest-NL, include representatives from financial institutions ABN AMRO, European Investment Bank, ING, the Dutch Professional Organisation of Accountants (NBA), the Dutch Banking Association, the Dutch Water Boards, Rabobank, Regional Development Agencies, Triodos Bank. Strategic partners of this group are the Ministry of Infrastructure and Water Management, Province of Utrecht, and City of Amsterdam.

We previously published an article about the Circular Financing core group.