In autumn 2019, the Advisory Hub completed a feasibility study to assess the potential for establishing an investment platform providing financial support and technical assistance for circular economy projects in the Netherlands. The study is a step towards the country’s ambitious goal to become a fully circular economy by 2050. The advisory assistance was requested by the Netherlands Investment Agency (Invest-NL), the national promotional institution.
The study supported by the Hub helped Invest-NL investigate the possibility of establishing an investment platform for circular economy projects in the Netherlands
The Dutch Government identified bottlenecks to the development and implementation of circular economy projects, in particular the lack of adapted financing. The Government prepared several recommendations, including establishing a specific fund for circular projects. Invest-NL asked the Advisory Hub to help assess the feasibility of this dedicated investment platform and to design the instrument.
The study identified financing gaps for circular projects with new technologies and innovative business models. These projects can’t easily find “risk-bearing capital” and “capital with patience”. A bespoke national investment platform would improve access to finance for these projects. Offering technical assistance to project promoters, covering all development stages and business models across all sectors, would also accelerate the maturity of such projects.
As a follow-up, Invest-NL has entered into discussions on the financing of the investment platform with the relevant stakeholders in the Netherlands. The Advisory Hub is ready to support the next stages of development of the platform once initial financing is agreed.