The latest issue of SEB’s Sustainable Finance Outlook presents presents insights on how to make circular economy bankable.
The report explores how digital innovation, electrification, and AI can help businesses and financial institutions create profitable circular business models.
Lead Scientist and Senior Advisor Gregor Vulturius hosts a discussion with Thomas Thygesen, Head of Strategy Equity Research, Samantha Arpas, Sustainable Finance Specialist, Anna Douglas, Senior Sustainability Advisor, Gabriella Eriksson, Senior Advisor- Sustainable Finance, and Joachim Ahlm, Head of Products - Asset Solutions on making circular economy business models bankable.
2025 saw the first decline in global investment in renewable energy in more than a decade. Total transition investment is still rising as focus shifts to upgrading whole energy system. European investment is set to rise, driven by electricity demand from next generation of technology and need to reduce import dependency. An electrified, AI-enabled production model would open the door for a truly sustainable circular economy.
Global sustainable finance issuance reached USD 2.2tn in 2025, marking the second-best year despite political challenges. Circular economy initiatives gained prominence in bond frameworks with project allocations observed in material, consumer discretionary and industrial sectors. Venture capital markets see investment mainly in battery recycling
Recent EU regulatory and policy developments addressing the circular economy include the EU Taxonomy, Clean Industrial Deal, Circular Economy Act, Ecodesign for Sustainable Products Regulation, and the Critical Raw Materials Act. These measures aim to improve resource efficiency and reduce dependence on raw material imports by promoting recycling, product longevity and sustainable production practices.
Adopting circular economy strategies can address key environmental and financial risks by improving resource efficiency, extending product lifespans, and rethinking asset ownership. It emphasizes the urgency for businesses and policymakers to transition from linear to circular material flows to enhance resilience, reduce supply chain volatility, and create new value opportunities.
The finance industry can play an important role in the transformation from linear to circular business models. It can be a facilitator and a partner in developing business model changes. This article outlines potential value drivers of circular business models, and which aspects are relevant for the financing of such models.
SEB’s “financial twin” model aggregates multi source data to assess equipment value based on projected cashflows, thereby enabling financing that is better aligned with circular, service-oriented business models and supporting sustainable finance.
Lina Apsheva, a sustainability communications officer at SEB, talks to specialists in the field to help you navigate the sustainable finance market. Lina and her guests discuss recent developments and forecasts for the future, and dive into specific themes within sustainable finance.
SEB flagship report Sustainable Finance Outlook provides insights and market intelligence for navigating the sustainability transition. The report includes regular updates on energy transition investment, sustainable finance markets and regulations as well as topical research.
If you have any questions, please contact:
Gregor Vulturius, PhD
Lead Scientist and Senior Advisor
Climate & Sustainable Finance