Report
Financing the circular economy: barriers and opportunities
The report from the Circular Finance Coalition (BNP Paribas, La Banque Postale, Oney, Cofidis) takes stock of the barriers to financing circular models and proposes concrete levers.
Authors
Jean Billant
Managing Consultant
Sara Bonnet
Communications Director
Financial institutions have a significant role to play as enablers of the transition to a circular economy. Yet they come up against numerous barriers: a lack of track record and of suitable tools for assessing financial returns, the specific risks of circular models, and more.
To address these issues, Circul'R and the members of the "Circular Finance" Coalition — BNP Paribas, La Banque Postale, Oney and Cofidis — are publishing the report "Financing the circular economy: barriers and opportunities encountered". The product of a year's work led by Circul'R, it takes stock of the main financing challenges and proposes concrete levers.
The role of financial institutions
Financial institutions can accelerate circularity by steering investment, providing dedicated lending and developing innovative financial instruments.
Financial and structural barriers to remove
Since September 2024, the coalition has studied seven circular business models. The report highlights three areas:
- Adapting financing to deferred profitability: use-based models generate revenue that is spread out over time.
- Better anticipating the residual value of circular assets: developing suitable valuation methods.
- Revising risk assessment tools: developing dedicated criteria and indicators.
Two priority use cases
- Long-term rental of household appliances: B2B2C models, usage-linked insurance, financing for repair infrastructure.
- Packaging reuse (deposit-return): financing for players that pool packaging, impact contracts, leasing of collection and washing equipment.
"This report demonstrates the strength of collective work: by bringing together financial institutions, companies and experts, we have been able to identify concrete barriers and propose pragmatic solutions." — Jules Coignard, co-founder of Circul'R
FAQ
What you need to know about us.
What sets Circul'R apart from a generalist consulting firm?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
What types of organizations do you work with?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
What is the process for a consulting project with Circul'R?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
Do you operate only in France or internationally as well?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
How does the circular economy fit into an existing corporate strategy?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
What is a sector-based coalition and how can I participate?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
How do you measure the results of your engagements?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
What is the average duration of a project?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.
How do I join the Circul'R Club?
Circul'R has focused exclusively on the circular economy since its inception. This specialization allows us to develop an expertise in resource dynamics and sector-specific transformations that a generalist firm cannot match.