The Circular Economy is a resource and energyefficient economic model, built on high valueretention of products and materials. The tran-sition to a Circular Economy is a fundamentalimperative for managing the systemic risksassociated with the triple planetary crisis, i.e.,climate change, biodiversity loss, and pollution1.For Nordic credit and investment financiers,supporting this shift from the traditional lineareconomy is no longer only a sustainability initia-tive; it is a critical driver for de-risking portfolios,identifying new sources of financial growth, andsupporting long-term competitiveness.

Accelerating a transition from linear to circulareconomy requires more than business-as-usualeconomic development. While baseline eco-nomic development delivers gradual progressthrough incremental efficiency gains, an accel-erated scenario depends on three additionalforces:

1) business-led innovation and scaling,

2) increasing supply chain/resource risks and

3) supportive policy and regulatory intervention.

Together, these mechanisms increase marketuptake of circular value propositions by im-proving their affordability, performance, userexperience and customers’ willingness to pay.Businesses can play a central role by innovating,reducing total system costs, and respondingproactively to policy signals. Coordinated actionacross, and considering, economic development,business-led innovation, and policy is thereforeessential to achieve faster and more resilientcircular economy outcomes over time.

This report has been developed by RISE, Re-search Institutes of Sweden, together with abroad range of financial actors from the Nordiccountries. It shows that additional engagementacross all Nordic countries will enable Nordicmarkets to fully benefit from knowledge sharingand boost competitiveness and resilience. Thereport lays out a number of recommendationsand a roadmap of activities to spur the financingof circular ventures, thereby enabling broaderand accelerated transition to an economy whereresources are properly valued.