Circular Economy Trade Finance Market Report 2026

The circular economy trade finance market size has grown rapidly in recent years. It will grow from $14.02 billion in 2025 to $16.35 billion in 2026 at a compound annual growth rate (CAGR) of 16.6%. The growth in the historic period can be attributed to growth of sustainable supply chain initiatives, rising adoption of trade finance digitization, increasing focus on resource efficiency, expansion of leasing and asset financing models, development of circular economy policies.

The circular economy trade finance market size is expected to see rapid growth in the next few years. It will grow to $29.92 billion in 2030 at a compound annual growth rate (CAGR) of 16.3%. The growth in the forecast period can be attributed to increasing demand for sustainable trade finance products, rising regulatory support for circular business models, expansion of blockchain-enabled trade finance, growing focus on lifecycle-based financing, increasing collaboration between banks and corporates. Major trends in the forecast period include increasing adoption of circular supply chain financing models, rising use of green trade finance instruments, growing integration of digital trade finance platforms, expansion of asset-backed circular financing solutions, enhanced focus on traceability and resource efficiency.

The expansion of global trade is fueling the growth of the circular economy trade finance market due to increasing cross-border economic activities. Global trade growth is expected to drive the circular economy trade finance market in the coming years. Trade involves the buying, selling, or exchange of goods and services between individuals or entities. It is increasing as globalization expands market access and enables businesses to connect more efficiently with consumers and suppliers worldwide. Circular economy trade finance supports trade by providing funding mechanisms that encourage resource reuse and recycling, thereby reducing costs and improving sustainability throughout supply chains. For instance, in March 2025, the United Nations Conference on Trade and Development, a Switzerland-based intergovernmental body, reported that global trade reached a record high of 33 trillion dollars in 2024, reflecting a 3.7 percent increase, equivalent to 1.2 trillion dollars in growth. Therefore, global trade expansion is driving the growth of the circular economy trade finance market.

Key companies operating in the circular economy trade finance market are focusing on developing advanced approaches such as sustainable finance taxonomies to guide investments toward projects that deliver measurable environmental and social benefits. Sustainable finance taxonomies are frameworks that classify economic activities based on their contribution to environmental, social, and governance sustainability goals. For instance, in May 2025, the International Finance Corporation (IFC), a United States-based international financial institution, introduced the Harmonized Circular Economy Finance Guidelines. These guidelines assist investors, financial institutions, and private enterprises in identifying and assessing opportunities to channel funding into circular economy initiatives. They provide clear criteria for qualifying activities and transactions, promoting global harmonization and market alignment. Building on frameworks such as biodiversity, blue finance, and green bond taxonomies, they broaden the range of eligible assets and encourage private investment in sustainable development. Notably, these guidelines are the first to define and measure eligible transaction amounts while maintaining alignment with the European Union Categorization System and the ICMA Green Bond Principles.

In September 2025, Bank of Baroda (BoB), an India-based public bank, collaborated with the Small Industries Development Bank of India (SIDBI) to introduce the BoB Earth Circular Economy Scheme (MSE Spice) under its Green and Sustainable product category. This collaboration supports micro and small enterprises (MSEs) in adopting sustainable practices that align with India’s climate and sustainability objectives. It also enhances Bank of Baroda’s green finance portfolio while reinforcing SIDBI’s commitment to offering inclusive and sustainable credit for MSMEs. Small Industries Development Bank of India (SIDBI) is an India-based financial institution.

Major companies operating in the circular economy trade finance market are Bank of America Corporation, Citigroup Inc., JPMorgan Chase & Co., Wells Fargo & Company, BNP Paribas S.A., MUFG Bank Ltd., HSBC Holdings Plc, Deutsche Bank AG, ING Groep N.V., The Goldman Sachs Group Inc., UBS Group AG, State Bank of India, Commonwealth Bank of Australia, Mizuho Financial Group Inc., Barclays PLC, Crédit Agricole S.A., Société Générale S.A., Intesa Sanpaolo S.p.A., UniCredit S.p.A., Standard Chartered Plc, ABN AMRO Bank N.V.

Europe was the largest region in the circular economy trade finance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the circular economy trade finance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the circular economy trade finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The circular economy trade finance market includes revenues earned by entities by providing services such as green trade credit facilities, circular procurement funding, eco-friendly export-import financing, and carbon footprint-linked financing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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