The chapter “Circular Financing Mechanisms for Adaptive Reuse of Cultural Heritage” addresses the need for innovative financing to preserve cultural heritage amid reduced public budgets, exacerbated by the COVID-19 pandemic. Traditional funding methods are critiqued for inefficiency and overemphasis on preservation without leveraging cultural heritage’s full potential. The Horizon2020 CLIC project proposes a circular economy approach, developing a taxonomy for circular, sustainable, green, social, impact, and ESG finance. Three primary financial instruments are introduced: the ARCH Investment Readiness Facility, the ARCH Hybrid Circular Impact Fund, and a hybrid Public Private Partnership (PPP) approach. These mechanisms aim to mobilize private investments, enhance project viability, and generate long-term social, cultural, and environmental impacts. Emphasis is placed on robust impact assessment frameworks and results-based financing to ensure transparency and efficiency. The project highlights the potential of blended finance to attract private investments and achieve sustainable development goals. In conclusion, the proposed mechanisms aim to bridge the financing gap for cultural heritage projects, promoting sustainable economic growth and social inclusion. The integration of public and private efforts within a circular economy framework is essential for preserving cultural heritage. The chapter underscores the importance of innovative financing solutions to support adaptive reuse and long-term sustainability.