Description
This report presents the results of a joint research project by the European Investment Bank Group and European Commission (DG ENV) to assess the circular economy investment gap in the European Union. While annual investments have reached around €120 billion - largely driven by the private sector - the analysis identifies a remaining investment gap of around €82 billion per year between 2025 and 2040 to make progress with the current circular economy relevant policy framework, regulations and action plans in place. The report shows that gaps are most significant in circular design and end of life infrastructure, and in key sectors such as construction, batteries and vehicles, and textiles. It also highlights persistent market failures and investment barriers and outlines how EU regulation can help markets to develop and how coordinated EU and EIB financing and advisory action can mobilise investments and accelerate Europe’s circular transition.