Circular economy and its financing in the EU

This thesis aims to identify limits of financing the circular economy in the EU and to shed light on the objectives that led to the decision to transform the economy from linear to circular. The status quo is examined from a perspective of different actors - the EU, governmental level, banks, investors and firms. Although, at the beginning it is important to look at the difference between linear and circular business models, and also sustainable finance. As this kind of finance is the closest possible alternative to use for funding of this type of economy. Another important basis is the EU framework of sustainable economy. The EU's target is to become fully circular by 2050. By analyzing the limits of the current state of financing the circular economy, the thesis came to a conclusion that the target is not reachable in the set time horizon. However, there is a couple of possible financial tools that could be used for facilitating the transition. And a good example of how to approach the circularity in practice can be already seen in a few EU Member States - such as France and Netherlands.