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The UK and Dutch governments have agreed to deepen cooperation on circular economy finance, a move that could help unlock greater investment for food and beverage businesses developing circular production models and sustainable supply chains.

The joint declaration, signed in London on 23 June by UK nature minister Mary Creagh and Dutch minister of climate and green growth Stientje van Veldhoven, sets out plans to improve access to finance for circular economy projects through closer collaboration between governments, financial institutions, businesses and research organisations.

The agreement follows a high-level roundtable held at London's Mansion House in March, where policymakers and private sector lenders established the Circular Economy Finance Group to explore ways of increasing investment in circular business models.

Both governments acknowledged that current levels of finance remain insufficient to support the transition to a circular economy, despite growing recognition of its role in improving resource efficiency, reducing environmental impact and strengthening long-term economic resilience.

For the food and beverage industry, improved access to circular finance could support investment in areas such as food waste reduction, by-product valorisation, recyclable and reusable packaging, water efficiency, ingredient recovery, and low-carbon manufacturing technologies.

Under the agreement, the UK and the Netherlands will work towards a shared reference framework for circular economy finance. The voluntary framework is intended to establish common definitions, measurement methodologies, and indicators that banks and investors can use to assess lending and investment opportunities linked to circular activities.

The two governments also committed to improving understanding of how circular economy initiatives are currently financed and identifying opportunities to increase capital flows into the sector.

In addition, both countries will collaborate internationally to support the development of circular finance standards, working alongside existing initiatives including the World Business Council for Sustainable Development's Global Circularity Protocol for Business, the United Nations Environment Programme Finance Initiative's Circular Economy Guidelines and the International Finance Corporation's Harmonized Circular Economy Finance Guidelines.

The declaration recognises the financial sector as a critical enabler of the transition to more sustainable business models, with banks and investors expected to play an increasingly important role in helping companies scale circular production systems.

The UK and Dutch governments also pledged to hold regular high-level consultations with financial institutions and industry stakeholders to monitor progress and identify further measures that could encourage investment.