BRIDGING THE GAP: FINANCING THE CIRCULAR ECONOMY FOR SUSTAINABLE DEVELOPMENT IN CENTRAL AND EASTERN EUROPE

Abstract

The adoption of a circular economy (CE) in Central and Eastern Europe (CEE) is a vital approach for achieving sustainable development. However, it has substantial financial obstacles, specifically in obtaining sufficient finance. This paper examines the function of green bonds as a fundamental financial tool to address the financing gap with respect to the CE in CEE. We analyze the current state of green bond markets in the region. By conducting research of green bond issuances, we investigate the effectiveness, difficulties, and future possibilities of green bonds in promoting the circular economy agenda. The results suggest that although green bonds have begun to acquire popularity, there are significant possibilities for expansion and improvement. The paper provides strategic ideas for policymakers, financial institutions, and enterprises to effectively utilize green bonds in expediting the shift towards a circular economy in CEE.