Advancing the Circular Economy: Business and Finance Perspectives: Insights and evidence from the NICER Programme

Transitioning to a circular economy (CE) requires companies to adopt circular business models (CBMs) that generate, capture, and deliver values in ways that are both sustainable and economically viable. CBMs serve as frameworks for securing essential funding for sustainability efforts by aligning business operations with CE principles: refuse, rethink, reduce, reuse, repair, refurbish, remanufacture, repurpose, recycle, and recover (9Rs). While progress has been made in advancing CE practices in the UK, there is a need to increase the pace of the transition towards increased circularity. Achieving effective implementation of CBMs requires a systems approach supported by enabling mechanisms, rules and regulations, and other enablers that foster the development of circular business ecosystems.

This report examines the CE transition through the dual perspectives of business models and finance, leveraging insights from the CE Hub and five specialised CE research centres focused on Textiles, Chemicals, Construction Minerals, Metals, and Technology Metals. Over five sections, we present actionable insights and practical recommendations to guide businesses reconfiguring their business models to accelerate their transition to a CE. Additionally, we outline funding options and requirements at different stages of the CE journey.