TOWARDS A CIRCULAR ECONOMY IN THE BUILT ENVIRONMENT

TOWARDS A CIRCULAR ECONOMY IN THE BUILT ENVIRONMENT

This report arises from a collaborative research effort led by the Circular Building Coalition (CBC), aimed at examining the challenges facing the European construction industry in its adoption of circular economy practices. The CBC, made up of actors such as Metabolic, Circle Economy, the World Green Building Council, the World Business Council for Sustainable Development and the Ellen MacArthur Foundation, in collaboration with Arup and supported by the Laudes Foundation, orchestrated this research. This is based on consultations with leaders in the construction industry and financial sector engaged in the circular economy.

The study identified three systemic challenges hindering the widespread adoption of circular economy approaches: issues within markets and supply chains, financing of circular buildings, and ownership models. Over a six-month period, the CBC conducted a comprehensive study including a literature review, desk research and interviews with 50 stakeholders from all sectors of the construction value chain, including asset owners , real estate investors, financial institutions, entrepreneurs, designers and NGOs.

The study mainly focuses on the major obstacles perceived by these stakeholders in the transition to a circular economy. The findings were then validated and discussed during four workshops organized between August and December 2022. In addition, the research integrates bottom-up modeling of material flows in the construction sector, in order to understand the extent of challenge on a European scale.

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