Financing circular economy projects

: evidence from clinical case studies

Abstract

Financial Industry has a very signficant role to play in promoting sustainability and is showing significant leadership in supporting the mainstreaming ESG in investments and in making the most out of these opportunities. There are large business opportunities in circular economy (CE), and funding these activities is very attractive to the financial sector. The existing financial instruments offered by public and commercial actors open up a world of possibilities for entrepreneurs who want to invest in settingup or altering their firm according to circular principles. To obtain funds, project promoters and companies face additional challenges due to the business and financial complexities inherent in many circular economy projects. This study emerges to fulfill gaps regarding the main motivations that lead to the development of projects in circular economy, as well as the financial instruments and funds used to enable the implementation of such projects. To achieve these goals, this study intends to characterize, describe and interpret the underlying motivations of Circular Economy. Therefore, this study is developed according to a Clinical Study focused on 3 Circular Economy projects. Expectedly, empirical evidence shows that, in fact, financing Circular Economy projects generates motivating factors for companies and institutions. Namely, 3Rs, Reduction of Costs and Pollution, on the Improvement in Competitiveness, Innovation, Processes, ESG Ratings and, ultimately, the Reputation of Institutions. All these motivations are positively correlated and address resource scarcity, impact on environment, economic concerns, governments, companies, and societies worldwide.

Date of Award	7 Jul 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Pinto (Supervisor)