Circular Economy and Private Sector Development: Learning Series

SESSION 8: CIRCULAR ECONOMY AND FINANCE 

The global economy is putting severe pressure on our planet, and is pushing through our planetary boundaries. There is an urgent need to move from a take, use, waste linear economy towards a regenerative reduce, reuse and recycle circular economy. This requires a fundamental transformation not only of the private sector’s businesses and value chains, but also of the financial sector which plays a critical for financing businesses with circular ambitions. Currently, the financial sector is insufficiently equipped for financing circular business – including start-ups, SMEs and corporates. Despite some very positive recent developments (e.g. ESG guidelines, EU green taxonomy, impact investment), there is a need to further transform financial sector policies and regulations, as well as the incentive structures and mental maps of its players.

In this eighth session we will explore alongside global leaders the critical issues that can inform policy makers and stakeholders within the financial sector. We will explore, on the one hand, circular financing needs through the lifecycle of a business where start-ups, SMEs and corporates have different risk profiles. On the other hand, we will explore the capabilities and constraints of finance providers such as venture capital capitalists, banks, institutional investors, as well as the role of government. Examples of issues to be discussed include the lack of risk capital for early stage finance, a lack of understanding of circular business models, eligibility issues of collateral, and valuation techniques of residual value. Moreover, and especially for longer term financing contracts, a dialogue on the current and future regulatory environment will also be tackled.

AGENDA

SPEAKERS AND PANELISTS

Koen Davidse, Executive Director, World Bank Group
Koen, a Dutch national, is the World Bank Group's Executive Director representing constituencies from thirteen countries since November 1, 2018. One of the key priorities of the constituency is climate and green recovery and getting back on track towards the SDGs. For this, progress towards the circular economy is indispensable. Prior to joining the World Bank Group, Mr. Davidse was the Deputy Special Representative of the United Nations Secretary-General in the Multidimensional Integrated Stabilization Mission (MINUSMA) in Bamako, Mali. Previously, he served at the UN as Research Director for the Secretary General’s High-level Panel on United Nations System-wide Coherence. Other senior positions he has held include Director of Multilateral Institutions and Human Rights in the Ministry of Foreign Affairs of the Netherlands, Director for Peace Building and Stabilization with a special focus on Afghanistan and Dutch Special Envoy for Sudan. Mr. Davidse also served earlier at the World Bank as a Senior Advisor at the board.

Jean Pesme, Global Director (FCI GP), World Bank Group
As Global Director, Finance in the Finance, Competitiveness & Innovation (FCI) Global Practice, Jean leads the World Bank’s work to promote the development of sound, stable, sustainable, and inclusive financial systems. His global team of experts works with governments and partners to make financial systems more resilient, to open access to finance for poor and vulnerable people, to support economic activity and to develop financial markets. Their strategy and its implementation emphasize development of digital financial services, addressing climate change and sustainable finance and creating opportunities for women by bolstering their financial inclusion. Previously, Jean led the World Bank’s Financial Stability and Integrity global team, which assists countries in building and restoring robust and resilient financial systems operating with integrity, transparency and in compliance with international standards and recommendations. He has extensive experience working on financial sector issues, notably in the Middle East and North Africa.

James Leaton, Senior Vice President, Moody’s
James is a senior vice president in Moody’s global environmental, social and governance (ESG) team. In this capacity, James leads the global ESG research and outreach strategy and is a primary spokesperson on ESG. James is the lead architect of Moody’s carbon transition assessment of companies in high impact sectors. James brings expertise across environmental issues, especially climate change risk and the energy transition. James is a regular participant at high-profile market briefings, external conferences, media engagements and policy discussions related to climate risk. Prior to joining Moody’s. James was previously Research Director at Carbon Tracker - a boutique research house - where he led a team producing thematic energy research combining elements of climate change scenarios with financial analysis. James was lead author of a series of research which sparked investor interest in the concept of stranded assets, and led to a number of investor initiatives on carbon asset risk. James also advised blue-chip clients on climate change and sustainability strategy whilst a consultant at PwC and was a senior policy advisor at WWF, focusing on the biodiversity impact of extractive industries. James holds a Masters degree in Environmental Technology from Imperial College, University of London

Aglaia Fischer, Circular Finance Project Manager, Circle Economy
Aglaia works at Circle Economy as project manager on the topic of circular finance. Moreover, she holds a position as a PhD candidate at Wageningen University. Aglaia leads (inter)national projects with the goal of exposing and overcoming financing issues, thereby unlocking the potential of the circular economy. She pursues a disruptive role in developing the structure and mindset necessary for investing in a global circular economy. Previously, Aglaia held positions at ABN AMRO bank, pension investor PGGM and the Sustainable Finance Lab before joining Circle Economy.

Menno Snel, ABP Pension Funds
Menno was State Secretary of Finance in the Rutte III cabinet from 2017 to 2019. Before that, he was chairman of the board of the Dutch “Waterschapsbank”. From 2011 to 2016, Snel was director of the IMF and in that role responsible for the day-to-day affairs of the IMF in Washington. In 2013, the 28 European countries in the IMF elected Menno Snel as chairman of the EURIMF. From 2009 to 2011 he was Director of Strategy and Policy and responsible for the business strategy of the APG Group, ABP's organization. Previously, Snel was Deputy Director General of Tax Affairs at the Ministry of Finance. Menno Snel is commissioner in the supervisory board of Royal IHC since June of this year and is chairman of the Mr. Hans van Mierlo Foundation. He studied, among others, International Monetary Economics at the University of Groningen and Public Finance at the London School of Economics.

Hein Brekelmans, Head of Sustainable Finance Desk,  ABN AMRO
Hein leads the Sustainable Finance Desk (SFD) at ABN AMRO. The SFD's mission is to accelerate the transition to the circular, low-carbon economy.

Davinah Milenge Uwella, Principal Program Coordinator, African Development Bank
Davinah coordinates several special initiatives on climate change within the Climate Change and Green Growth Department of the African Development Bank. Among these are: the Africa Nationally Determined Contributions Hub, a platform hosted at the African Development Bank to support African countries implement their Paris Agreement climate commitments; The Secretariat of the African Financial Alliance on Climate Change, an initiative launched by the African Development Bank to mobilize, catalyze and leverage domestic climate finance; and the Secretariat for the African Circular Economy Alliance hosted at the African Development Bank with support from the World Economic Forum. 

Luigi Ruggerone, Director, Intesa Sanpaolo Group
After completing his postgraduate studies in Economics in the UK, Luigi joined Banca Commerciale Italiana in 1996, working in Milan for the Research Department and then the Risk Management Department. In 2013, with his wife Alessandra and his kids Luca and Sara, Luigi moved to Washington DC to join the International Monetary Fund, where he contributed to writing several issues of the Global Financial Stability Report until 2015. In October 2015 he joined Intesa Sanpaolo Group to open and manage its new Representative Office in Washington DC. In 2018 he was appointed Head of Innovation Business Development with Intesa Sanpaolo Innovation Center, a new company of Intesa Sanpaolo Group based in Turin and entirely dedicated to scout, analyze accelerate and support innovative technologies. Since July 1st 2019 Luigi is the Director of Applied Research with Intesa Sanpaolo Innovation Center.

Elisa Achterberg, Researcher, Sustainable Finance Lab
Elisa works at Sustainable Finance Lab on innovating finance for a circular economy. Elisa contributes to this goal by leading pioneering projects bringing together circular business leaders and finance providers. She combines active social engagement with strong quantitative skills. She has a solid background in econometrics, financial risk management and circular business models.

Dr. Tian Huifang, Senior Research Fellow, Institute of World Economics and Politics, Chinese Academy of Social Sciences
Previous to her current role, Tian Huifang was also the visiting scholar to University of Toronto in 2014, university of Gothenburg in Sweden in 2012, and University of Western Ontario in Canada in 2008-2009. She has published many academic papers in some SSCI and top-level journals like “Journal of Policy Modeling ", "Climate Change Economics", "China and World Economy", “Journal of World Economy” etc. The scientific research projects she was and now is in charge of, include the National Social Sciences Fund Major Project, the APEC “Green Finance” project, the Economic Research Institute for ASEAN and East Asia (ERIA) “Circular Economy” project, among others. 

Arnoud Walrecht, Director, KPMG
Arnoud is responsible for leading KPMG Sustainability in Circular Economy engagements in the Netherlands and worldwide. As the leader of KPMG Circular Economy Advisory business lines as part of KPMG IMPACT Arnoud has extensive experience in managing complex multi stakeholder projects in an international context and has been working on multiple engagements related to Circular Economy or the broader Sustainability strategy topic. Key projects relate to support in applying circular metrics with clients and being end-responsible for the support of the WBCSD on Circular Transition Indicators. Arnoud has over 19 years of experience in environmental, sustainability, and strategy projects. He has led multiple circular economy projects for clients in the public and private sector.