Leveraging effective and inclusive collaboration with financial institutions to accelerate the transition to more circular economies

The event ''Leveraging effective and inclusive collaboration with financial institutions to accelerate the transition to more circular economies'' was organized as an official side-event of the Sixth UN Environment Assembly on 27 February 2024.   

In line with the UNEA-6 theme, the event discussed the pivotal role of partnering with financial institutions to catalyze effective, sustainable, multilateral action on accelerating the transition to circular economies, to address the triple planetary crisis. 

Date and time: Tuesday, 27 February 2024, from 6.30 to 7.45 pm EAT

Location: In-person, Press Room, UN Compound in Gigiri, Nairobi, Kenya

Lead organizers:

• Ministry of Environment and Energy of Costa Rica
• Ministry of Energy Transition and Sustainable Development of Morocco
• Ministry of Environment of Peru
• Ministry of Environment of Rwanda

Partners organizations:

• Global Alliance on Circular Economy and Resource Efficiency (GACERE), and its 17 member countries: Canada, Chile, Colombia, Ecuador, the European Union, India, Japan, Kenya, Morocco, New Zealand, Nigeria, Norway, Peru, Republic of Korea, Rwanda, South Africa and Switzerland 
• Circular Economy Coalition for Latin America and the Caribbean 
• African Circular Economy Alliance 
• CIRCULAR STEP 
• World Bank 
• UNEP Finance Initiative
• United Nations Environment Programme (UNEP) 
• United Nations Industrial Development Organisation (UNIDO) 

Background information:

Unlocking finance is key to support the development, implementation and monitoring of circular policies, as well as accompany businesses in transitioning to more circular business models. As countries progress in designing comprehensive circular policy packages, they often lack financial capacity to move to the implementation phase. Globally, circular economy initiatives have struggled to attract funding, due to inter alia regulatory barriers, perceived higher risk, uncertain returns, and a lack of international standards. In addition, traditional investment and financing models, which tend to favour short-term returns, often fail to valorise the long-term benefits that circular initiatives provide.

In line with the UNEA-6 theme, this event provided the opportunity to discuss the pivotal role of partnering with financial institutions to catalyse effective, sustainable, multilateral action on accelerating the transition to circular economies. 

During this event organized as part of UNEA-6, GACERE, the African Circular Economy Alliance, the Circular Economy Coalition for Latin America and the Caribbean, Circular STEP and financial institutions explored how governments can increase effectiveness and impact of their efforts towards circularity by partnering with financial institutions and unlocking private finance. Such partnerships are key in driving multilateral action towards more circular economies, as financial institutions may guide investments and financing towards technological innovations, knowledge transfer and incentivize businesses to adopt more circular practices and business models. Specific financial mechanisms and policy instruments can also be used to create incentives and the enabling conditions for a transition towards a more circular economy. Leveraging these mechanisms and relevant collaborations, governments can unlock financing solutions, ensuring that circular economy policy strategies and circular business initiatives are not only envisioned but also materialise into actionable, transformative and sustainable outcomes for climate, nature and pollution.

Enhanced transnational cooperation is fundamental in navigating financial challenges for the circular economy. There is no one-size-fits-all solution for financing the circular economy. By bringing together a diverse array of voices from governments, global and regional circular economy networks to financial institutions, the session aimed to provide a platform in which regional perspectives, needs and opportunities will be discussed.

Audience: Governments, businesses and international organizations active in the promotion of circular economy.

About the Global Alliance on Circular Economy and Resource Efficiency (GACERE): GACERE is an alliance of governments at global level willing to work together on and advocate for a global just circular economy transition and a more sustainable management of natural resources, at the political level and in multilateral fora. GACERE was launched in February 2021. GACERE is an initiative of the European Commission on behalf of the European Union and UNEP, in coordination with UNIDO. To date, the following countries have already joined the Global Alliance: Canada, Chile, Colombia, Ecuador, the European Union, India, Japan, Kenya, Morocco, New Zealand, Nigeria, Norway, Peru, Republic of Korea, Rwanda, South Africa and Switzerland. The work of GACERE is supported by strategic partners: the Ellen MacArthur Foundation, the Platform for Accelerating the Circular Economy (PACE), the World Business Council for Sustainable Development (WBCSD) and the World Circular Economy Forum (WCEF).

About the Latin America and the Caribbean Circular Economy Coalition (LAC CEC): LAC CEC was formed in 2021 to provide a regional platform to enhance inter-ministerial, multi-sectoral and multi-stakeholder cooperation, increase knowledge and understanding on circular economy, provide capacity-building and technical assistance for the development of public policies for circular economy and sustainable consumption and production. It is currently coordinated by the United Nations Environment Programme (UNEP), and led by a steering committee composed of six high-level government representatives on a rotating basis. Currently, Brazil, Colombia, Costa Rica, Ecuador, Dominican Republic and Peru are part of the steering committee, together with nine strategic partners: the Climate Technology Centre & Network (CTCN), the Ellen MacArthur Foundation, the Inter-American Development Bank (IDB), the Konrad Adenauer Foundation (KAS), Platform for Accelerating the Circular Economy (PACE), the United Nations Industrial Development Organization (UNIDO), the World Economic Forum (WEF), the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), and UNEP. 

About the African Circular Economy Alliance (ACEA): ACEA is a government-led coalition of African nations with a mission to spur Africa’s transformation to a circular economy that delivers economic growth, jobs, and positive environmental outcomes. ACEA was conceived in 2016 during the World Economic Forum and has since served as a platform that supports the transition to a circular economy at the national, regional, and continental levels by pushing for policy development, scaling circular economy businesses, and leadership and advocacy. The Alliance was founded by the Governments of Rwanda, Nigeria, and South Africa and currently has 13 African countries as members. The African Development Bank hosts the secretariat of the Alliance and is supported by other strategic partners. 

About Circular STEP: Circular STEP is a stakeholder engagement platform for stakeholders across sectors, including governments, businesses, academia, and civil society, to advance the transition towards a circular economy in the UNECE region. Launched in 2022 and coordinated by UNECE, Circular STEP facilitates knowledge sharing, policy dialogue, and the development of practical solutions to promote resource efficiency, reduce waste, and foster sustainable consumption and production patterns. Uniting governments, private sector, academic and research institutions, civil society, and other actors from all 56 member States, it aims to support the transition of circular economies, with a priority focus on the wide range of economic issues addressed by UNECE including trade. 

For more information on the event, please contact: Claire Thiebault, Programme Management Officer, UNEP, claire.thiebault@un.org 

                                                                                 In partnership with: