The World Circular Economy Forum presents the world’s best circular economy solutions and gathers together the most recognised experts and decision makers in the field. The event is organised by the Finnish Innovation Fund Sitra. Read more: www.wcef2019.com

1. Europe as a front runner in circular
economy financing
Helsinki, WCEF, 3-5 June 2019
Liesbet Goovaerts - European Investment Bank
04/06/20191
The EIB in the
circular economy

2. The EU bank:
• Established in 1958
• Shareholders are the 28 EU Member States
• Around 90% of lending within the EU
World’s largest International Financial Institution:
• Largest multilateral lender
• Largest multilateral capital markets borrower
• Primarily focused on EU but with large operations outside
Total
investments
supported
in 2018:
EUR 230bn
Lending
volume in
2018:
EUR 55.6bn
Capital
markets
funding in
2018:
EUR 60bn
Solid credit fundamentals:
• AAA-rated by the three major rating agencies
• Favourable borrowing conditions passed on to clients
Key lending priorities (2018 levels of investments – EIB Group):
ENVIRONMENT
EUR 15.2bn
INFRASTRUCTURE
EUR 12.3bn
INNOVATION
EUR 13.5bn
SMEs
EUR 23.3bn
EIB at a glance

3. A priority in Europe and the EIB…
04/06/2019European Investment Bank Group 3
Large gains are foreseen
– less material and more labour intensive economy
EC CE Package with ambitious targets..
.. requiring further investments and lending opportunities

4. 04/06/2019European Investment Bank Group 4
Money as an enabler..
Source: Eurostat
..easier said than done
Uncertainty and lack of experience imply huge challenges
Circular business perceived as more risky
Higher risk = higher cost of finance

5. How to make it work..
04/06/20195
 Improve framework conditions for
financing (e.g. through setup/involvement
in multi-stakeholder CE forums)
 Knowledge sharing & capacity building
(e.g. in conferences)
 Prepare studies to identify market barriers
and funding gaps
Awareness/education
 EC backed programmes like InnovFIn and
EIAH
 Review circular projects, improve
investment readiness
 Advise on financing options within and
outside the EIB Group
 Facilitate contacts to relevant market actors
Advisory
Guidance/
coaching
Finance
Support to
CE
Finance
 Improve Project
Soundness/Bankability
Enhance Knowledge /
Market Intelligence
(e.g. Access-to-finance studies)
 Risk sharing instruments such as EFSI
and InnovFin
 Where necessary, recommend internal
EIB-managed instruments and/or
Investment Platforms (IP)
 Structure/implement IP that mobilise
public/private investors
Develop / Enhance
Financial Instruments
(e.g. Circular Bio-economy IP)
Knowledge
developme
nt / sharing
Transfer of
Lessons
Learned

6. Policy makers
Project promoters
Develop definitions, taxonomy and tools to
measure the ‘circularity’ of projects
Analyse the risk of linear business models and
review credit risk assessment methods to account
for linear risks
Strengthen risk-sharing financial instruments and
create a pool of experts available for financial
institutions to assess the technological risk of
innovative circular technologies
Clearly label financial instruments fit for financing
circular economy projects and increase awareness
and knowledge of the circular economy within the
financial sector.
Way forward, for discussion…
Financial sector

7. For circular questions/comments/documents:
www.eib.org/circular-economy
CircularEconomy@eib.org