Journal Markcount Finance
Vol. 4 No. 2 (2026)

CIRCULAR ECONOMY FINANCIAL PRACTICES: FINANCING MODELS FOR SUSTAINABLE BUSINESS INNOVATION

Chevy Herli Sumerli (Universitas Pasundan)
Fatima Malik (Quaid-i-Azam University)
Ahmed Shah (Aga Khan University)



Article Info

Publish Date
30 Apr 2025

Abstract

The transition to a circular economy requires innovative financial practices to support sustainable business models and reduce environmental impact. Traditional financing mechanisms often focus on linear growth, emphasizing short-term profitability over long-term sustainability, which limits the adoption of circular practices. Circular economy financing aims to provide capital, incentives, and risk mitigation strategies that enable businesses to implement resource-efficient, regenerative, and waste-minimizing processes. This study investigates financial models that facilitate circular economy adoption, including green bonds, impact investing, leasing schemes, and public-private partnerships. A qualitative research design was employed, combining systematic literature review with case study analysis of firms implementing circular strategies across manufacturing, energy, and service sectors. Data were analyzed thematically to identify patterns in financing approaches, success factors, and barriers. Findings indicate that tailored financing mechanisms, such as performance-based loans and blended finance models, effectively support circular business innovations by aligning financial incentives with environmental and social outcomes. The study concludes that integrating innovative financial practices into circular economy initiatives can drive sustainable business transformation, enhance competitiveness, and reduce environmental footprint.

Copyrights © 2026






Journal Info

Abbrev

jmf

Publisher

Subject

Description

Journal Markcount Finance, established in 2023 by Yayasan Adra Karima Hubbi, has become a leading platform for economic research that connects financial innovation, sustainability, and digital transformation within the evolving economic ecosystem. In 2026, the journal introduced a change in its ...