At the World Circular Economy Forum (WCEF) 2026 in Gandhinagar, India, CircularInvest partner Circle Economy hosted the accelerator session “Reorienting Capital Flows for the Circular Economy”, bringing together entrepreneurs, financiers, policymakers and development institutions to explore one key question: what can be solved through finance, and what requires broader systemic change?

The session challenged the common assumption that all barriers to circular economy investment can be addressed through financial innovation or de-risking mechanisms. Instead, speakers emphasised the need to first diagnose the nature of the barrier before choosing the appropriate intervention.

Drawing on lessons from the CircularInvest project, the discussion highlighted that where a strong business case already exists, both fundseekers and financiers can improve outcomes. Circular businesses can strengthen their investment readiness, while financial institutions can adapt assessment methods to better recognise the value, risks and cash-flow characteristics of circular business models. In some cases, targeted public risk-sharing can help overcome specific, clearly defined barriers.

However, participants also stressed the limits of de-risking. When challenges stem from weak demand, missing infrastructure, fragmented secondary-material markets or regulations that continue to favour linear production, the solution lies not in financial engineering but in market-shaping policies and systemic reforms.

Featuring contributions from representatives of Nature’s Principles, Colesco Capital, GIZ/SIDBI, the Dutch Ministry of Economic Affairs, Expertise France and the Colombo Stock Exchange, the session concluded with a clear message: the goal is not simply to mobilise more capital labelled as circular, but to create the market conditions, institutions and financial systems needed to deliver the circular transition at scale.

As highlighted throughout the discussion, finance should follow the transition we want to achieve, not the other way around.

Interested in learning more? Explore the CircularInvest deliverables for practical insights, tools and recommendations on improving access to finance for circular economy projects and strengthening the ecosystem for circular investment.