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The essential characteristics of circular economy and its structural components are presented as the theoretical background within our article. The peculiarities of social needs transformation as a prerequisite for the circular economy development are substantiated. The global milestones of the circular economy emergence are identified, which allows following the transition from the traditional linear business model to the innovative business model in the context of circular economy. The article analyses the way of traditional economy principle (take, make, waste) replacement with the 3R principle, namely reduce, reuse, recycle. The examples of different types of financial sources, including traditional and alternative ones, in the context of circular economy are provided in the research. The peculiarities of financial support at different stages of the project, which is implemented in the context of circular economy priorities realization, are explored. In particular, the analysis of the potential of different types of grants, crowdfunding, venture and seed financing, impact investments, banking investments, etc. for the circular economy development is provided. The particular attention is paid to  the national models of circular economy and peculiarities of their financing in Norway, France and the Netherlands. The peculiarities of the circular economy formation at the regional level and the specific characteristics of the Scandinavian model of a circular economy in Europe are analyzed. The potential of the circular economy formation and development in Ukraine is defined. The applied instruments for promoting the development of the circular economy in Ukraine are developed within the current article.

Theoretical framework of circular economy and European practices of its financing