InvestCEC: Circular economy investments - Financial barriers and potential measures to address them
Updated on 10.07.2025
This report identifies key financial barriers hindering circular economy investments in cities and regions, such as high upfront costs, uncertain returns, and lack of tailored financial instruments. It also proposes concrete measures to overcome these challenges, including blended finance, targeted subsidies, and innovative investment models.
Relevance for Circular Systemic Solutions
The report focuses on circular economy investments, addressing financial barriers and potential solutions, while considering key stakeholders including businesses, investors, policymakers, and local governments.
Its practical value for cities and regions lies in identifying major financial obstacles (such as high initial investment costs, uncertain returns, and lack of financial instruments) and suggesting measures like public-private partnerships and tailored financial models to enhance investment viability.
These findings are important for implementing Circular Systemic Solutions as they identify key financial barriers upfront, making it easier to address them effectively. This resource is most helpful in the Map phase of Circular Systemic Solutions deployment.
CEAP2 key product value chain
built environment, CEAP2 key product value chain
CEAP2 key product value chain
CEAP2 key product value chain
CEAP2 key product value chain
CEAP2 key product value chain
CEAP2 key product value chain
CEAP2 key product value chain
including bio-based economy
e.g. B2B services
digital tools facilitating CE transition
e.g. chemicals, cosmetics, bio-based industries
e.g. re-use of public spaces and facilities in urban areas
e.g. electrical engineering, furniture and interior, textile and fashion
e.g. healthcare
<5 000
large 500 000-200 000, medium 200 000-50 000, and small cities 50 000-5 000
large metropolitan area >1.5 million, metropolitan area 1.5 million-500 000
predominantly urban regions, intermediate and predominantly rural regions, refer to TERCET typology NUTS 3 region
e.g. commercial, residential, service, industrial
