The benefits of the circular economy are obvious to everyone, but how we get there is much harder, Marius Brînzea, Director of Strategy, Reciclad’OR, told the Financing the circularity conference on Wednesday. He explained that he has identified three major preconditions that could create an optimal framework for financing circular economy investments.
“The first precondition is a fair and real understanding of the concept and the implications that the transition to a circular economy has for society. The second prerequisite is the provision of useful and essential data and information for strategic decision-making. The third precondition is the creation of the legal framework specific to the circular economy, with government policies being known as the main driver of the transition process and, last but not least, ensuring the financing of an investment dedicated to circular economy projects”, explained Marius Brînzea.
According to its statements, the circular economy is a production and consumption model focused on sharing resources, reusing, repairing, refurbishing resources and recycling materials and products as much as possible.
“The circular economy is not about waste management, as is being toxicised. It’s about resource management. It’s about patterns of production, resource sharing, repair, refurbishment and reuse. Recycling is obviously important, but it is specific to early circular economy models, like circular supply chains, resource recovery. Truly successful and sophisticated circular economy models – resource sharing platforms, extending the life of products and materials, and selling products as services – require, in addition to expanding production capacities, changing company structures, and investment. These, in order to be made, need the right data and information to finance these circular economy models”, Marius Brînzea stressed.
The director for strategy at Reciclad’OR, said that models can be achieved through continuous improvement of current business models and there is no major risk here for investors. But the vast majority of circular economy models that will develop will require innovation, and innovation comes with risks.
“And then, obviously, investors and financiers need data as reliable and as complex, as transparent as possible, and access to this data must be permanently ensured”, Marius Brînzea pointed out.
He added that for investors, in the coming period 2023-2024, the completion of the amendments to the 95 non-financial Directive will facilitate a better comparison of sustainable business models in the transition to the circular economy.
“Until then, it is necessary that financiers and investors have at least, in Romania’s case, sufficient and credible data on the basis of which to initiate investment processes,” Marius Brînzea said.
In addition, the Recyclad’OR representative believes that government policies should firstly ensure circular economy opportunities, secondly financially stimulate sustainability in one form or another and ensure the development of public-private partnerships on circular economy projects with measurable and reportable environmental, social and economic impacts.
“Essential to this precondition is the predictability of the legal framework. Once these conditions are met, investors will obviously be attracted to the circular economy,” said Brînzea.
*Information taken from the Green Report website
