Circular economy an increasingly strong source of growth for businesses

The circular economy has a major impact on both human well-being and business creation. This economic model of the future will extend the life cycle of products and reduce waste. Business Finland's Circular Transition for Zero Waste mission aims to accelerate the global transition to a circular economy by supporting Finnish pioneers in scaling up circular economy transitions and solutions.

Business Finland participated in the World Circular Economy Forum held in Brussels from 15-18 April 2024. The annual WCEF event is organized by Sitra in cooperation with its international and host country partners. Business Finland participated in the Forum and was present in the Finland stand of the exhibition area to present Finnish circular economy innovations and Business Finland's services to promote them.

“The circular economy contributes to the international competitiveness of businesses and sustainable growth. We want to accelerate the adoption and scaling up of circular economy business models and solutions globally, thereby strengthening Finland's competitiveness. We will also attract investment to Finland that fosters innovation and promotes sustainable development. Finland has many solutions to the challenges ahead," says Outi Suomi, Mission Lead, Transition to Zero Waste.

Circular economy business model a key competitive factor for companies

Several Finnish companies also participated in the WCEF event in Brussels. We extend our gratitude to the organizations that invited them, particularly to the Helsinki-Uusimaa Circular Valley.
Check out Circular Valley´s publication Finland – Local Solutions are born here 

Carbonaide Ltd  is commercializing a carbon utilization and storage technology developed by VTT, which has the potential to reduce the carbon footprint of concrete to even carbon-negative levels. Carbonaide's method involves capturing and mineralizing carbon dioxide into concrete products used in the construction industry. The carbon-negative footprint of concrete products is achieved by combining Carbonaide technology with low-emission binders, which can be sourced from industrial by-products.

The first precast concrete production line based on Carbonaide's technology commenced commercial production in Hollola in March 2024. The company has received a R&D loan from Business Finland.

Mr Jonne Hirvonen, Chief Operating Officer of Carbonaide, what does the circular economy mean for Carbonaide?

The circular economy is at the core of Carbonaide's philosophy. In addition to closing loops and reducing emissions in production, we achieve significant cost savings and permanent carbon sequestration, known as technical carbon sinks. Our technology demonstrates that circular economy models do not require an extra cost for end products; rather, it is possible to decarbonize the world's second most-used material – even at lower costs than the original.

What are Carbonaide's internationalization goals?

Carbonaide has successfully commercialized its technology with Rakennusbetoni- ja Elementti Oy in Hollola, and our next step is to enter the commercial phase in several market areas, without forgetting our domestic market. Despite the construction industry's weak economic conditions, there is international demand for our technology, as economic cycles have not altered the upward price trend of cement. Our method can typically save 20-40% of cement. Consumer preferences, construction companies, and regulatory influences are also beginning to steer solutions towards lower carbon emissions.


Jonne Hirvonen presented a carbon sequestering stone from Carbonaide in the Finland stand. He says that the WCEF event was an excellent place to network and gain wider visibility. Hirvonen discussed potential co-development projects both at home and abroad with a number of people at the event.

Rester Ltd processes discarded textiles into versatile new fibers. Rester has a fibre plant for circular textiles in Paimio, which currently processes cotton, polyester and mixed materials Now, Rester is developing the utilization of textile dust and fibers. The company has received funding from Business Finland for its product development

The fibres produced by Rester's recycling process are used in a wide range of applications, from textile manufacturing to the production of technical nonwovens. One of the latest partners is Marimekko, which this year will start including Rester's recycled fibers in the production of new clothes.

CEO Joachim Colliander, Rester is a pioneer in Finland and largely across Europe in this field. How does it plan to expand internationally?

In the coming years, Rester´s focus will be on growth and scaling internationally including commercialization of several innovative products and solutions in cooperation with key partners.

Joachim Colliander took over as CEO of Rester last February. He says that as the new CEO and as a newcomer in the textile industry, attending the WCEF2024 was truly valuable from a networking perspective. He was also very pleased being awarded the opportunity to pitch Rester and the tangible solutions the company can bring to the table, when it comes solving market bottlenecks and providing market access to recycled fiber on an industrial scale.

Investors' dedication is needed

The WCEF event sent a clear message: the financial sector now recognizes the potential of the circular economy. Both public and private sectors, along with banks, need to collaborate for blended finance. Financiers must agree on common definitions, methodologies, and metrics.

“Today risk-profit evaluation is still based on linear economy. Financiers and investors need to be trained to evaluate circular economy projects”, stresses Outi Suomi.

The Digital Product Passport (DPP) is a way to bring together data on product sustainability, raw materials, other materials and safety. In the coming years, DDP will be required for all products available on the EU market. At the WCEF accelerator session we heard how pioneering Finnish companies have piloted the Digital Product Passport in sectors such as textiles. Data has the potential to support investors' decision making.

See Sitra's publication: Digital Product Passports: catalysing Europe’s sustainable growth  

EU establishes a Circular Economy Resource Centre

The European Commission wants to support the global transformation to a circular economy by setting up a new Centre of the Circular Economy. It will be operational by the end of 2024. The centre will be designed in partnership with Sitra, the Finnish Ministry of Foreign Affairs and ENABEL, the Belgian government's development agency. 

The centre will facilitate knowledge exchange and partnerships between the EU and third countries. The Commission will provide one-off funding of €15 million.  

Read European Commission news: Global Gateway: EU announces new EU Circular Economy Resource Centre and SWITCH to Circular Economy in East and Southern Africa programme to accelerate global transition

Read Sitra news: WCEF2024: Europe urgently needs a circular single market to safeguard economic security

Further information

Mission Lead Outi Suomi
outi.suomi (at) businessfinland.fi
Tel. +358 50 5727 530