When thinking about the Circular Economy, the first consideration for most people, quite rightly, is the environment. It’s about a new way of thinking, transitioning away from traditional linear models that use finite resources to produce goods and services, towards regeneration and reuse. In recent years this has been accompanied by a growing acknowledgement that these Circular Economy principles also encourage economic innovation and growth. According to the World Economic Forum, the Circular Economy could yield up to $4.5 trillion in economic benefits globally by 2030.
What are the benefits of a circular economy?
A move to a circular economy would hold many benefits for the environment, and the climate crisis. It aims to eliminate waste, with biological materials being reused until they can be composted or used as fuel, and prolonging the lifecycle of finite materials like metals by focusing on reusing, refurbishing and replacing parts. In turn, by aiming to return natural resources to the earth, it aims to regenerate nature, with the economy operating on a principle of reusing resources many times over. This reduces the reliance on finite resources and allows the economy to actively regenerate the natural environment.
How is the Circular Economy creating value?
2022 picked up from where 2021 left off when it comes to investment in the UK Circular Economy. Our annual report shows 2022 was the most active year yet with the number of Circular Economy related investments increasing by 16%, outperforming the UK M&A market, where the total volume of investments fell by 12%.
In 2022, private investors deployed in excess of £850m of capital across 142 Circular Economy led businesses. Our report takes a look at:
- Who is investing in the UK Circular Economy?
- Why private investment in UK Circular economy businesses is outpacing investment in the overall UK market?
- How investor’s attitudes towards the Circular Economy are evolving?
- Which sectors are most influenced by circular economy trends?
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