New policy brief: How the EU can better support circular economy start-ups
The DEFINITE-CCRI project has published a new policy brief that explains how the EU can help circular economy start-ups and projects access the private investment they need to grow. The brief, Banking on Circularity, was written by ICLEI Europe and draws on the experiences of circular businesses that received support through DEFINITE-CCRI. It shows that while the EU supports the circular economy in principle, many barriers still make it difficult for circular businesses to attract funding. These include strict certification rules, longer timelines to show profits, and limited tools to measure their full environmental and social impact.
The publication focuses on three types of businesses:
- Material recovery businesses, which turn waste into new materials or products.
- Circular platform businesses, which promote sharing, reuse or renting instead of buying new.
- Circular hubs, which offer space and support to local circular economy actors.
Each business type faces unique challenges. For example, material recovery businesses often deal with contaminated waste streams, which makes it harder to produce high-quality, safe products. Circular platforms may struggle to prove how much consumption they help avoid. Circular hubs may offer strong community benefits but find it difficult to measure or communicate their wider impact to investors.
The policy brief recommends practical solutions for EU and national policymakers. These include simplifying certification procedures for recycled materials, adjusting tax rules that favour virgin materials, improving access to co-financing, and recognising the broader value that circular hubs bring to local economies. This publication also highlights the importance of project development assistance. By offering technical and financial support, DEFINITE-CCRI helped start-ups refine their business models and become more investment-ready.
As the EU prepares new laws like the Circular Economy Act and updates to its startup strategy, this brief offers timely guidance to ensure the circular economy becomes a real investment opportunity—not just a policy goal.
👉 Read the full policy brief here.
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