Financial Challenges and Threats of Circular Economy Logistics

This chapter explores the economic aspects related to circular economy logistics and highlights the key financial challenges and threats that organizations may face when transitioning to a circular economy business model. We developeda methodological approach for researching financial challenges and threats, which consisted of 4 steps. In the 1st stage of the research, we identified the leader in the trade of processed raw materials—Germany and characterized the factors why this country is the leader. In the next stage, the authors reasonably identified possible financial threats that prevent the effective development of circular economy logistics. In the third stage, the relationship between the rate of reuse of materials and the exchange rate, interest rates, and inflation rates was investigated using the multiple regression method. Then, based on the results obtained in the first stage, we investigated which companies carry out their activities in the field of circular economy logistics. The hypothesis of the chapter is that the transition to circular economy logistics presents several financial problems and threats that must be carefully considered and resolved. By recognizing these challenges and adopting appropriate strategies, organizations can navigate financial challenges and unlock the economic benefits associated with the circular economy, promoting sustainability and resource efficiency.