COP29: Investing in the circular economy brings social, economic and environmental benefits

At the United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, the multilateral development banks (MDBs) presented their first joint report on the circular economy: The Circular Economy on the Move.
The report features 20 in-depth case studies from around the world and across sectors ranging from waste and food management to the construction sector, plastics, textiles, battery recycling and critical raw material recovery. Case studies provide insight into MDB support

Circular economy, which includes advisory services, financial support to governments, private sector investment and financial sector support.

Drawing on case studies, the report presents six key findings: investment in the circular economy is not limited to high-income countries, but is gaining momentum around the world, including in middle- and low-income countries, despite uneven policy structures; As a group, MDBs provide a wide range of products to promote and support the circular economy, from tailored loans and investments to advisory support; The private sector is actively involved in the circular economy, but a more favorable regulatory framework is needed to take full advantage of the opportunities of the circular economy; Cities can foster innovation and stimulate action; The financial sector has a critical role to play in improving access to finance for circular businesses, but needs guidance on how to seize this opportunity; MDBs’ circular economy interventions must actively engage and support the most vulnerable populations and the informal sector.

“The Inter-American Development Bank is committed to promoting sustainable development through innovative investments in the circular economy. Our case studies highlight the transformative impact of these initiatives, demonstrating how strategic investments can transform waste into valuable resources, stimulate economic growth and promote environmental sustainability,” said Sergio I. Campos G., Head of Water and Sanitation at Inter-American Development. Bank.

“The financial sector plays a key role in the transition to a circular economy by driving investment and creating innovative financial instruments that support circular business models and solutions focused on resource efficiency, waste reduction and smart design,” said Gabriel Azevedo, Director according to the strategy of the IBR Invest company. “Adopting a circular economy not only opens up business opportunities for sustainable and inclusive growth, but also plays an important role in addressing the climate crisis.”
“The African Development Bank recognizes the transformative potential of the circular economy in delivering youth employment and environmental benefits through regenerative practices and efficient use of resources. Through the African Circular Economy Fund (ACEF), the Bank intends to continue

empower African countries to seize the many opportunities for circularity,” said Dr. Anthony Nyong, Director of Climate Change and Green Growth at the African Development Bank.
“The circular economy provides a useful framework and comprehensive solutions to address the triple planetary crisis of biodiversity loss, pollution and climate change,” said Yoko Watanabe, Environment Director of ADB’s Climate Change and Sustainable Development Department. “ADB’s Environmental Action Plan, to be released during COP29, sets a roadmap for increasing environmental investments, including actions related to promoting a circular economy in Asia and the Pacific.”

“This report is evidence of growing cooperation between MDBs, which now extends to the circular economy,” said Gianpiero Nacci, Director of Sustainable Business and Infrastructure at the EBRD. “As a group, we are committed to helping businesses reduce waste, improve resource efficiency and build sustainable supply chains. At the EBRD, we are committed to driving innovation in circular solutions across all our regions.”

“The circular economy represents a powerful shift to drive growth within our planet,” said Ambroise Fayol, EIB Vice-President responsible for environment, climate change and circular economy finance. “This requires bold partnerships and knowledge sharing to advance and scale effective solutions. As the climate bank of the European Union, the EIB is committed to strengthening its support for investments around the world in climate action, environmental sustainability and the circular economy.”
“The effects of climate change, nature loss and pollution are felt primarily by developing countries. We can no longer support a habitable planet with a linear economy that grows now and cleanses up later. Moving to more circular approaches can support jobs and competitiveness

countries – but this requires better regulation. The circular economy represents a huge opportunity for the private sector. Multilateral development banks can play a key role in supporting countries to create the right policy environment to attract private sector investment that takes advantage of the opportunities that the circular economy offers,” said Valerie Hickey, Global Director for Environment at the World Bank.

In its shared vision, presented at the World Circular Economy Forum in Brussels in April earlier this year, the MDB Working Group committed to facilitating knowledge sharing with the private sector, civil society, and local, regional and national authorities. The members of the MDB working group are: Asian Development Bank (ADB), African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank. and IDB Invest, as well as the World Bank Group (World Bank and IFC).