At the United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, Multilateral Development Banks (MDBs) presented their first joint report on the circular economy: "The circular economy in motion."

The report showcases 20 detailed global projects across diverse sectors, ranging from waste management and food to the construction sector, plastics, textiles, battery recycling, and the recovery of critical raw materials. The case studies provide a snapshot of the MDBs' commitment to the circular economy through advisory services, financial support to governments, private-sector investments, and targeted backing for the financial sector.

The report provides six key insights:

• Global Reach: Circular economy investments are advancing worldwide, including in middle- and low-income countries, though policy frameworks remain uneven.
• Comprehensive Support: As a group, MDBs provide a wide range of products, from tailored loans to advisory services support to foster circularity.
• Private Sector Potential: Businesses are increasingly engaging in circularity, but a more conducive regulatory framework is needed to unlock their full potential.
• Urban Innovation: Cities serve as hubs for innovation and action in circular economy practices.
• Financial Sector Role: The financial sector must enhance access to funding for circular businesses, with guidance on seizing related opportunities.
• Inclusivity: MDB interventions must prioritize vulnerable populations and the informal sector.

Dr. Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank, emphasized: "The African Development Bank acknowledges the transformative potential of circular economy to generate youth employment and ecological benefits through regenerative practices and efficient resource use. Through the Africa Circular Economy Facility (ACEF), the Bank is committed to continue to empower African countries to harness the numerous opportunities of the transition to circularity."

Yoko Watanabe, Director for Environment, Climate Change and Sustainable Development at the Asian Development Bank (ADB), said: "The circular economy provides a useful framework and holistic solutions in tackling the triple planetary crises of biodiversity loss, pollution, and climate change. ADB's Environment Action Plan, which is being released during COP29, sets the roadmap for scaling up nature-positive investments, including actions related to promoting the circular economy in Asia and the Pacific."

Gianpiero Nacci, Director of Sustainable Business and Infrastructure at the European Bank for Reconstruction and Development (EBRD), said: "This report is a testament to the growing collaboration among MDBs, now extending into the circular economy. As a group, we aim to help businesses reduce waste, enhance resource efficiency, and build resilient supply chains. At the EBRD, we are committed to driving innovation in circular solutions across our regions."

Ambroise Fayolle, European Investment Bank (EIB) vice-president for financing environment, climate action and the circular economy, said: "The circular economy represents a powerful shift, enabling growth within our planet's limits. It calls for bold partnerships and shared knowledge to drive and scale up impactful solutions. As the European Union's climate bank, the EIB is committed to stepping up its support for investments worldwide in climate action, environmental sustainability, and the circular economy."

Luiz Gabriel Azevedo, Chief Strategy Officer, IDB Invest, said: "The financial sector is pivotal in driving the transition to a circular economy by channeling investments and creating innovative financial instruments that support circular business models and solutions focused on resource efficiency, waste reduction, and smart design. Embracing a circular economy not only unlocks business opportunities for sustainable and inclusive growth but also plays a significant role in addressing the climate crisis."

Valerie Hickey, Global Director for Environment at the World Bank, stated: "The effects of climate change, nature loss, and pollution are being felt first and foremost by developing countries. We can no longer maintain a livable planet with linear economies that grow now and clean up later. Moving toward more circular approaches can support jobs and competitiveness for countries - but this requires better regulations. The circular economy presents an enormous opportunity for the private sector. Multilateral Development Banks can play a key role in supporting countries to create the right policy environment to attract private sector investments that seize the opportunities a circular economy offers."

Earlier this year, the MDBs Working Group shared a vision at the World Circular Economy Forum in Brussels to promote knowledge exchange with the private sector, civil society, and local, regional and national authorities. Members of the Working Group are the Asian Development Bank, the African Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank and IDB Invest, and the World Bank Group.