Nature by Design: Key messages from the IUCN-Monaco event on circular economy

Making nature investable: from circular business models to capital

Finance has a critical role to play in moving circularity and nature from promising concepts into scalable
business models. Yet nature and circularity remain largely absent from mainstream financial decision-making,
held back by fragmented data, a lack of common definitions and risk frameworks that were largely designed for a linear economy.

Integrating ecosystem services and better nature-related data into investment decisions can help financial
institutions better understand both risks and opportunities. Regenerative agriculture was highlighted as an
example of where nature-positive approaches can create investable opportunities, while also strengthening
resilience to climate and geopolitical shocks.

Key message: The challenge is no longer simply demonstrating that nature matters to the economy but making that value visible and actionable in financial decisions. Moving beyond legacy risk models and improving the quality and use of nature-related data will be essential to directing capital towards circular and nature-positive business models.

Making biodiversity everyone's business: circularity in action

The business session showed that many of the solutions needed to make production more circular and nature-positive already exist. Examples ranged from regenerative cotton sourcing and construction materials made from demolition waste to replacing plastic packaging with seaweed-based alternatives. The focus now needs to shift towards creating the conditions that allow such solutions to scale. 

The discussion also built on the findings of the 2026 IPBES Business and Biodiversity Assessment, which underlines that businesses both depend on and impact biodiversity and therefore have an important responsibility to act. The assessment identifies businesses as key actors in transformative change, highlighting that action to reduce impacts and improve outcomes for biodiversity is both possible and needed now. 

This responsibility also creates an opportunity: businesses can strengthen their own resilience by recognising their dependence on nature and bringing nature into strategic decision-making, product design and circularity strategies. At the same time, companies cannot transform markets alone. Collaboration across businesses, sectors and policymakers, alongside predictable and consistent regulation, is needed to create a level playing field and reduce the competitive disadvantages of acting early.

Key message: The solutions are increasingly within reach; scaling them requires stronger collaboration, supportive market conditions and regulation that gives businesses the confidence to invest for the long term.

Making policy work for nature: unlocking the potential of circularity

The policy discussion reinforced that circular economy, and biodiversity should not be treated as separate agendas. Circular approaches can directly address several drivers of biodiversity loss by reducing resource extraction, extending product and material lifecycles, and cutting waste and pollution. This connection is increasingly reflected in how countries are approaching Target 16 of the Global Biodiversity Framework.

Policy tools such as Extended Producer Responsibility (EPR) and the EU's upcoming Circular Economy Act can help translate ambition into implementation. However, solutions need to be adapted to different sectors and contexts. Effective implementation will also depend on appropriate economic incentives, better monitoring and data, and sufficient capacity within municipalities and businesses.

Key message: Policy can provide the framework for systemic change, but its effectiveness will depend on coherence across agendas, practical implementation capacity, appropriate incentives and evidence of impact.

IUCN/Justin Thomas

Conclusions and way forward

Across the discussions, a common thread emerged: the building blocks for a nature-positive circular economy are already there, but they need to connect. Businesses are developing solutions, finance is beginning to recognise the economic case for nature, and policymakers have tools that can create the enabling conditions. The next step is to bring these elements together.

This means embedding biodiversity more firmly into circular economy approaches, while recognising circularity as a practical means of delivering biodiversity objectives. It also means creating more predictable policy frameworks, improving nature-related data and financial decision-making, and strengthening collaboration between businesses, financial institutions, governments and other stakeholders.

With Lithuania's upcoming EU presidency and Armenia hosting CBD COP17, the discussions pointed to an important opportunity to move from promising but isolated practices towards more systematic implementation. The direction is clear: align innovation, capital and policy so that circularity can contribute to resilient economies and ecosystems-and make nature a consideration at the heart of economic decision-making.