EIB and Multilateral Development Banks Unite to Accelerate Circular Economy Adoption

EIB and Multilateral Development Banks Unite to Accelerate Circular Economy Adoption

(IN BRIEF) During the World Circular Economy Forum (WCEF) 2023, environment-focused directors from leading Multilateral Development Banks (MDBs) met to discuss the circular economy for the first time. The African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB), IDB Invest, and the World Bank recognized the significance of the circular economy in addressing climate change, biodiversity loss, and pollution. They emphasized the role of the financial sector in supporting the transition to a circular economy. The directors agreed to collaborate on the circular economy and continue working together through the Circularity Exchange Network (CEN), which fosters knowledge exchange and collaboration on standards, tools, and products. The MDBs outlined aims to link circularity to key environmental objectives, improve impact assessment methods, increase the share of high-impact circular projects, build capacity for circular economy strategies, develop mechanisms to de-risk investments, and introduce circular approaches into sustainable development activities. The MDBs, including the EIB, are committed to advancing the circular economy transition through collaboration with the private sector and national agencies.

(PRESS RELEASE)  LUXEMBOURG, 31-May-2023 — /EuropaWire/ — The European Investment Bank (EIB), the lending arm of the European Union, alongside prominent Multilateral Development Banks (MDBs), convened during the World Circular Economy Forum (WCEF) 2023 in Helsinki to initiate a collective dialogue on the circular economy—a first-of-its-kind discussion among environment-focused directors. In attendance were representatives from the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the Inter-American Development Bank (IDB), IDB Invest, and the World Bank. The MDBs collectively recognized the circular economy’s significance in addressing the interconnected challenges of climate change, biodiversity loss, and pollution. Moreover, they underscored the pivotal role of the financial sector in supporting countries’ transition towards a circular economy.

Acknowledging the value of collaboration, the directors committed to ongoing cooperation among the MDBs, leveraging platforms such as the Circularity Exchange Network (CEN). CEN, initiated by Circle Economy and the Dutch Ministry of Infrastructure & Water Management, brings together esteemed organizations including the Ellen MacArthur Foundation, UNEP-FI, and the World Economic Forum. Through this network, the MDBs will exchange knowledge on circular economy practices, fostering collaborative efforts to establish standards, tools, and products that facilitate circular activities and projects.

Outlined in the report titled “Unlocking the Potential of the International Financial Institutions in the Circular Economy Transition,” the future collaboration among MDBs will be guided by several key objectives:

  1. Align circularity with critical environmental objectives, particularly the goals set forth in the Paris Agreement.
  2. Enhance and harmonize impact assessment methods for circular economy investments.
  3. Increase the proportion of high-impact circular projects in lending and investment practices.
  4. Cultivate internal expertise within MDBs and bolster external capacities among project partners to effectively harness the circular economy as a strategy for economic success and resilience in client countries.
  5. Develop mechanisms that de-risk investments in the circular economy, fostering improved access to blended finance through public-private collaboration.

Building upon these goals, the MDBs will continue collaborating with private sector entities and national agencies to integrate circular economy approaches into their sustainable development activities. The EIB is committed to leveraging its expertise and working in tandem with other MDBs to drive the transition towards a more sustainable and circular future.

Press Office Division

Communication Department
press@eib.org
+352 4379-21000
+352 4379-61000

SOURCE: European Investment Bank

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