Circular Economy

Building blocks for a more sustainable financial system

On 31 January 2018, the High-Level Expert Group (HLEG) on Sustainable Finance, set up by the European Commission in December 2016, delivered its final report and recommendations. First and foremost: finance It’s worth stressing that this report is not simply about a tiny share of the market that offers sustainable products and services—it’s about the f […]

Which business model will enable a circular economy?

Ushering in a truly circular economy, i.e. one that runs on products, components, and materials that are reused instead of discarded, requires more than the will to change one’s behaviour. It takes real updates to how we approach the taxation of services and materials. Our last article looked at how stakeholders would feel the different VAT impacts of the rese […]

Towards a circular economy: VAT and the “resell model”

In our last article, we talked about the role tax can play in a circular economy: specifically, how we can shift away from an economy that taxes humans and towards an economy that taxes (material) resources. A next important step is to understand if and how circular business models actually affect the taxes paid by businesses and consumers, and the taxes receive […]

Circular economy calls for new tax thinking

Take a second to think about the plastic bottle from which you just drank, the computer you have just typed on, the chair on which you sit. Typically, for such goods, raw materials are taken, the item is produced, then it is consumed and eventually thrown away. The results are shrinking natural resources and growing landfills. The circular economy envisions a sh […]

All lights are green: GO finance!

In December 2013, Xavier Bettel, Prime Minister of the Grand Duchy of Luxembourg, gave the mandate for Luxembourg to properly dive into the circular economy. The aim is to integrate the ideologies of the circular economy—i.e. one that runs on the sustainable cycling of materials—into the business community and into Luxembourg as a whole. Mr Bettel commented […]

Circling round the circular economy

The idea of the circular economy has been around for decades. Essentially it refers to an economy that is made up of materials that either biodegrade or circulate at high quality without harming the environment. And it’s becoming increasingly important that we move towards one, not only because material-rich countries like China are now using more than they ar […]