Green Finance, Circular Economy and Sustainable Business Performance in the Agricultural Sector

Dear Colleagues,

Agriculture is undergoing a profound transformation as societies seek production systems that are environmentally responsible, economically resilient, and able to support long-term food security. Farmers, cooperatives, and agribusinesses are increasingly expected to demonstrate how their activities contribute to climate mitigation, soil and water protection, biodiversity enhancement, and responsible resource use. At the same time, the financial sector is reshaping its instruments and evaluation frameworks to better align capital flows with sustainability goals. Green loans, sustainability-linked credit, climate risk assessment tools, and ESG-based reporting standards are becoming part of everyday decision-making for agricultural enterprises.

Parallel to these developments, circular economy principles are gaining traction across the agri-food system. They encourage recovering and reusing biological resources, reducing waste, and creating regenerative production cycles that strengthen both environmental and economic performance. Circular approaches also open new opportunities for innovation, ranging from nutrient recycling and biogas production to bio-based materials and value-added processing. Together, green finance and circular economy strategies form an emerging framework that can support more competitive, climate-smart, and socially responsible agricultural business models.

However, important questions remain regarding the conditions under which green finance and circular economy practices generate measurable improvements in agricultural business performance. Evidence remains fragmented regarding their effects on profitability, productivity, risk exposure, investment capacity, market competitiveness, and broader environmental and social outcomes. Further research is therefore needed to identify effective financing mechanisms, viable circular business models, and policy frameworks that can accelerate the transition towards sustainable and resilient agriculture.

It is crucial to understand how transition finance and tools can effectively support the shift toward more sustainable practices by relying on measurable, transparent KPIs, as well as how advanced assessment mechanisms and digital tools, such as life cycle assessment, remote sensing-based monitoring, API-enabled data integration, and interoperable data-sharing systems, can ensure credible tracking and help farmers in the process of transition.

This Special Issue will present and disseminate the latest advances in green finance, circular economy solutions, and sustainable business performance in the agricultural sector. We invite contributions that deepen our understanding of how financial mechanisms, circular practices, and business strategies interact to shape the future of agriculture. We welcome both theoretical and empirical studies, including interdisciplinary research that connects economics, environmental science, rural development, and policy analysis.

This Special Issue will also generate evidence relevant to farmers, agri-businesses, financial institutions, policymakers, and other stakeholders working to accelerate a sustainable and resilient transition in agriculture.

We invite submissions that explore innovative financing tools, assess circular production systems, evaluate sustainability performance metrics, or analyze policy frameworks supporting the transition to greener agricultural systems. Studies focusing on investment behavior, risk management, digital innovations, and cross-country comparisons are particularly encouraged. Contributions may address farm-level practices, agri-food value chains, cooperative models, or broader rural development contexts. Particular attention could be paid to studies examining how these approaches affect the profitability, productivity, competitiveness, resilience, and environmental and social performance of farms and agri-businesses, as well as to how these practices and tools help with the transition to more sustainable agriculture.

Topics of Interest

• Green finance instruments and sustainability-linked investment in and for agriculture;
• Circular economy models in farming, processing, and bio-based industries;
• Sustainability performance metrics, ESG reporting, and impact assessment;
• Investment risks and opportunities in climate-smart, regenerative, and sustainable agriculture;
• Policy frameworks enabling green and circular transitions;
• Digital and financial innovations and tools supporting resource-efficient production and farming;
• Case studies demonstrating practical circular solutions and value creation.
• Business performance, competitiveness, and structural development of farms and agri-businesses in relation to green finance and circular economy practices, including profitability, productivity, resilience, investment capacity, and differences across farm types and size classes;
• Resource efficiency and circular resource flows, including nutrient recycling, water reuse, agricultural waste valorization, renewable energy, and bioenergy;
• Climate adaptation, biodiversity, and nature-based solutions in agricultural business models and investment decisions;
• Cooperative, value-chain, and rural development approaches to financing and implementing circular agricultural innovations;
• Technological inventions for sustainable agriculture;
• Transition finance and tools for more resilient and sustainable agriculture.

Prof. Dr. Irina Pilvere
Prof. Dr. Aina Muska
Dr. Aija Pilvere
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the Special Issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-anonymized peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Agriculture is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.