Businessman hold circular economy icon. Sustainable strategy approach to eliminate waste and pollution for future growth of business and environment, design to reuse and renewable material resources.
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Investors, take note: the circular economy can make money. On October 14 in Brussels, a proven model from Klagenfurt will show how cities can turn waste and energy solutions into scalable investments.
For years, circular economy initiatives—reusing and recycling as much as possible—stayed mostly on paper. Few became money-making ventures. But in Klagenfurt, a mid-sized Austrian city designated as one of the EU’s 100 climate-neutral cities, a three-year pilot shows that circular models can be financially viable when utilities, innovators, and investors collaborate.
The pilot is part of InvestCEC, an EU-funded project led by Stadtwerke Klagenfurt, the city’s public utility, and Venionaire Capital, a venture firm. The initiative has created a model that can be replicated across Europe, turning circular economy concepts into concrete deals—ones that align with city goals and investor expectations.
“The European Commission made it clear: they don’t want theoretical papers anymore,” says Venionaire CEO Berthold Baurek-Karlic, in an interview. “They want real action—business models that can grow and attract real investment.”
The circular economy is more than a buzzword. In cities, it means turning waste into raw materials, rethinking logistics, and improving energy and water systems while cutting emissions. Cities are where most waste, energy, and water demand happens—so they are ground zero for change.
Yet, circular projects have faced challenges because investors often view them as risky. Supply chains are fragmented, and business models can be unclear. InvestCEC addresses these matters directly, creating a clear pathway for innovation, investment, and replication.
Klagenfurt was chosen as the pilot because it combines ambitious climate goals with strong municipal influence. The city utility doesn’t just collect garbage or supply power—it manages energy, water, and waste systems. For startups, this presents an opportunity to integrate circular technologies into city operations.
While startups gain access to vast resources by partnering with the city utility, the enterprises must cope with bureaucratic rules that hinder their progress. InvestCEC helps companies navigate these obstacles with templates, reports, and guidelines that turn practical solutions into profitable opportunities.
From Idea To Investable Project
BRUSSELS, BELGIUM – FEBRUARY 11: EU Commissioner for Environment, Oceans and Fisheries Virginijus Sinkevicius is talking to media about: ‘Changing how we produce and consume: New Circular Economy Action Plan’ in the Berlaymont, the EU Commission headquarter on February 11, 2020. Today, the European Commission adopted a new Circular Economy Action Plan – one of the main building blocks of the European Green Deal, Europe’s new agenda for sustainable growth. With measures along the entire life cycle of products, the new Action Plan aims to make our economy fit for a green future, strengthen our competitiveness while protecting the environment and give new rights to consumers. Building on the work done since 2015, the new Plan focuses on the design and production for a circular economy, with the aim to ensure that the resources used are kept in the EU economy for as long as possible. The plan and the initiatives therein will be developed with the close involvement of the business and stakeholder community. (Photo by Thierry Monasse/Getty Images)
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InvestCEC follows a four-stage process to turn circular economy ambitions into scalable, investable projects.
First, the city identifies its needs—from waste management and water infrastructure to energy and logistics—and develops targeted solutions. Next, it opens calls for entrepreneurs, using standardized templates to ensure fair and comparable submissions. In the third stage, companies refine business plans, define key performance indicators, and structure financing to appeal to investors. Finally, public and private funds are combined to make projects bankable, and progress is monitored so lessons can be applied elsewhere.
According to Paul Stern, project lead at Venionaire, this structured approach is what makes the model scalable: “We focus on the utility’s concrete needs and create standardized processes — data, templates, and selection criteria — that make due diligence faster and risks more transparent.”
That’s how you go from a pilot project to an investable deal.
That practical framework leads Baurek-Karlic to a subtle but important shift in language. He prefers “resilience technologies” to “climate solutions.”
“Climate is politically charged,” he says. “Resilience technology gives us the freedom to create commercially viable solutions while addressing critical infrastructure challenges.”
Lessons from global events, including Climate Week in New York and the Clinton Global Initiative, helped shape the project’s approach. They exposed the team to innovative practices from Japan, Africa, and beyond, which were then incorporated into Klagenfurt’s pilot.
Companies in the pilot used cutting-edge sensors and machinery to turn waste into reusable materials. Working with the city utility, InvestCEC helped them gather the necessary data to prove the effectiveness of their solutions and prepare for scaling to other cities.
Venionaire’s role went beyond project management. The firm forged partnerships with Universe Partners, Israel’s largest resilience tech fund, and Una Terra, an impact-focused venture studio supporting European circular economy startups. These partnerships provide both capital and operational guidance, bridging the gap between EU policy goals and market realities.
Why Investors Should Care
ATTENTION: EMBARGOED FOR PUBLICATION UNTIL 13 JUNE 19:00 GMT! SPERRFRIST 13.06. 19:00 – 13 June 2022, North Rhine-Westphalia, Marl: After delivery, waste mainly from the so-called “yellow bags” is transported by a wheel loader to the sorting facility for light packaging of the new environmental services company Interzero. In the course of the split-up of the Alba waste management group, one of the owners launched a new company. The company Interzero, which specializes in sorting and processing plastic waste, among other things, was presented in Marl. Photo: Bernd Thissen/dpa (Photo by Bernd Thissen/picture alliance via Getty Images)
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Despite progress, some remain skeptical. Many circular economy initiatives never scale beyond small pilots. Public-private partnerships can get bogged down by bureaucracy, and investors hesitate to back untested revenue models.
Baurek-Karlic acknowledges these challenges but points to InvestCEC’s safeguards. By linking projects to utility contracts, startups secure reliable revenue without diluting equity, reducing investor risk. By using standardized templates, pinpointing what’s missing, and sharing pilot data, the program makes projects easier for private investors to evaluate—and fund.
“We believe there is really an opportunity out there, and we will not stop with the end of the EU project,” Baurek-Karlic says. “We want to bring this to the market. There is no other fund that focuses on public-private partnerships in this resilience tech space.”
Klagenfurt shows that theory can become reality. The October 14 Brussels event will demonstrate how the model can be replicated, offering free guides, stakeholder platforms, and procurement templates for cities across Europe. More importantly, it proves that circular economy projects can be scaled, measured, and financed—a critical step in moving from ideas to action.
Building on Klagenfurt’s lessons, Venionaire and its partners—backed by Universe Partners—are preparing a new public-private investment vehicle focused on resilience technologies. The aim is to introduce a proven model to other European cities and ultimately expand it. Their goal is to show cities worldwide that the circular economy isn’t just green—it’s an investment opportunity.
For investors, policymakers, and urban innovators, the message is clear: with structured partnerships, bankable pilots, and a plan for replication, the circular economy is now a practical, scalable, and profitable way to build sustainable cities.