The Circular Economy as the New Normal

Financing Experiments

One way to stimulate trust and collaboration is to make financial support available for projects that could lead to system change. These distinctive projects are only profitable if the entire value chain participates. These projects stimulate incentive alignment by sharing financial risks and benefits. 

The financial backer plays a key role in this financing experiment, because the government is unable to take on this role. The profits of these initiatives, both financial, social, and ecological, can only be achieved if the entire ecosystem participates. 

It seems to be difficult to organize these experiments, because results do not depend on one company, but on an entire ecosystem. An external financial backer is able to kick-start these initiatives, because it decreases the risks for all participants. When these experiments succeed it also gives practical evidence and trust for future collaborative experiments.