Circular economy finance: Clear winner or risky proposition?

A major shift in private and public investment is needed to forge a transition to a circular economy. A recent surge of activity from policy makers, the financial industry, and other stakeholders suggests commitment and progress toward providing resources to facilitate this process. In this forum ar...

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Bibliographic Details
Published in:Journal of industrial ecology 2020-12, Vol.24 (6), p.1192-1200
Main Authors: Dewick, Paul, Bengtsson, Magnus, Cohen, Maurie J., Sarkis, Joseph, Schröder, Patrick
Format: Article
Language:English
Subjects:
Circular economy
Economics
environment and finance
Finance
Financing
industrial ecology
Investment
Investments
Policy making
socially responsible investing (SRI)
sustainability indicators
sustainable development
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Summary:A major shift in private and public investment is needed to forge a transition to a circular economy. A recent surge of activity from policy makers, the financial industry, and other stakeholders suggests commitment and progress toward providing resources to facilitate this process. In this forum article, we provide a measured, and in some respects critical and corrective, assessment of these developments. We highlight the riskthat progress toward a circular economy will be curtailed by strategic decisions based on contestable understanding, fuzzy indicators, and inadequate information. Before major industry actors implement international investment standards, launch innovative financing vehicles, and ramp up investment, we call for more effective oversight to prevent the circular economy from becoming yet another compromised and ultimately ineffectual sustainability concept.
ISSN:1088-1980
1530-9290
DOI:10.1111/jiec.13025