The transition to a circular economy requires mobilizing resources and investments that support the adoption and upscale of ecological design, new technologies, and business models. Policy instruments, including economic instruments, play a crucial role in ensuring that the prices of goods and services reflect the economic damages associated with their production and use, thereby creating incentives for circularity. Such incentives can help create a more level playing field for innovative technologies and business models and play a key role in freeing and reallocating resources. Financial mechanisms are instrumental in scaling up funding in new business models to support the transition towards a circular economy. This module provides a framework for financing the transition toward a circular economy. It provides examples of financing mechanisms on government interventions and the role of private sector investments along the production and consumption value chain.