Better Funding - Draft Action 3: Prepare a Circular City Funding Guide to assist cities in accessing funding for circular economy projects

  • Cristina (Commu... profile
    Cristina (Commu...
    6 February 2018 - updated 1 year ago
    Total votes: 2
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Bottleneck to be addressed

Besides lacking awareness of the existing sources of funding/financing for circular economy investments and the conditions for accessing/blending them, cities and funding institutions often lack the knowledge on how to assess, design and set up funding programmes/schemes for circular economy projects. With regards to public promoters, projects may face financing gaps due to constrained municipal public budgets and limited credit lines from public and commercial banks.  In the case of private promoters, circular businesses and projects are often small and/or carry other risks that are not acceptable to commercial banks. There are also obstacles and structural barriers that complicate the blending of public and private financing and of loan financing and grants.

/futurium/en/file/prepare-circular-city-funding-guide-assist-cities-accessing-fundingPrepare a Circular City Funding Guide to assist cities in accessing funding

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Increase the visibility and understanding of the different sources of grant funding and loan financing available for projects that support the transition towards the circular economy in cities, and enable funders to better relate and respond to such funding needs and opportunities. This action comprises the preparation of a guide to funding and financing sources for circular initiatives and projects in cities, including:

  • Introduction and links to existing guides and resources on circular city funding/financing;
  • New complementary guidance on circular economy funding/financing sources for technical assistance and public and private investments in circular city projects;
  • Information on eligibility criteria and application procedures for different circular city funding/financing sources to support fund seekers;
  • Information on technical and financial advisory providers;
  • Guidance aimed at facilitating project assessments and funding/financing decisions. 


The guide to be developed under this action is intended to help cities identify and access suitable sources of funding and financing for their own circular projects as well as for projects promoted by private and public entities in their territories. The guide will also build knowledge on how to design and set up effective funding schemes for circular city projects, taking into consideration their varying types, sizes and risk profiles. The guide will consider needs for funding and financing of not only project implementation, but also technical assistance and capacity building. The technical assistance may involve both preparation of circular strategies/plans and preparation of project pipelines and individual projects. The guide will target both fund seekers and funders, and to the extent justified also other stakeholders on national, regional or local level with a role in facilitating and supporting circular project developments.

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