Sustainable Finance and Circular Economy
Chapter from the book: Şahin, C. (ed.) 2024. Current Financial Developments and Practices.

Fatih Demir
Karadeniz Technical University
Kurtca Mehmet Uğurlu
Artvin Çoruh University

Synopsis

As the global population continues to grow and resources become increasingly scarce, the importance of sustainable approaches such as the circular economy is becoming more evident. The circular economy aims to achieve several objectives, including reducing resource waste, reusing waste materials, and enhancing environmental sustainability. At the same time, the circular economy is a model that promotes economic growth. It approaches a product’s life cycle as a process consisting of various stages, such as design, production, remanufacturing, distribution, consumption, use, reuse, repair, collection, and recycling. In short, the circular economy is a system that aims to conserve resources, recycle materials, and minimize waste in the production process. Unlike the linear economy, in the circular economy, products are designed for long-term use, and raw materials are continually reused, aiming to reduce costs. The primary goal of the circular economy in this context is to ensure environmental sustainability. Numerous benefits of the circular economy have been identified, including economic growth, lower transaction costs, improved environmental conditions, and innovative business models. Financial sustainability, on the other hand, refers to promoting societal well-being through long-term sustainable economic growth strategies that take into account the social, environmental, and governance impacts of financial systems. Financial institutions, and even investors, comply with national (environmental, social, and governance) criteria when providing financing for environmentally conscious projects. Moreover, financial sustainability encompasses innovation, and this innovation must consider environmental and social factors. In conclusion, the circular economy and financial sustainability support the efficient use of resources and long-term environmental, social, and economic sustainability goals. By optimizing resource utilization, the circular economy and financial sustainability aim to address environmental and social challenges, combat climate change, and promote long-term economic stability.

How to cite this book

Demir, F. & Uğurlu, K. M. (2024). Sustainable Finance and Circular Economy. In: Şahin, C. (ed.), Current Financial Developments and Practices. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub494.c2094

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Published

October 26, 2024

DOI