Towards a Circular Economy in the Built Environment
Updated on 29.07.2025
This report examines the obstacles to accelerating the circular transition that are faced by the European construction industry, and what can be done to overcome them. It is a collaborative research effort by the Circular Buildings Coalition (CBC), which has been set up to coordinate built-environment stakeholders working towards this transition. The CBC is an initiative of Metabolic, Circle Economy, World Green Building Council, World Business Council for Sustainable Development and the Ellen MacArthur Foundation in collaboration with Arup, funded by the Laudes Foundation. The report is based on extensive consultations with industry leaders on the circular economy from the construction and finance sectors.
Relevance for Circular Systemic Solutions
This report focuses on the construction and built environment sector, including stakeholders across the full building lifecycle: material suppliers, designers, developers, construction firms, financiers, asset managers, and policymakers. The report provides key insights and strategic tools for cities and regions, such as guidance on implementing alternative ownership models (e.g., land trusts, cooperatives), financial instruments (like blended finance and green mortgages), and material tracking technologies (like material passports and LCAs).
This resource is most helpful during the “map” and “design” stages. It provides in-depth system diagnostics (material flow analyses, regulatory landscapes) and strategic blueprints (financial models, ownership structures, stakeholder incentives) that enable local and regional actors to chart transition pathways and design effective interventions.
built environment, CEAP2 key product value chain
e.g. B2B services
digital tools facilitating CE transition
e.g. chemicals, cosmetics, bio-based industries
e.g. re-use of public spaces and facilities in urban areas
<5 000
large 500 000-200 000, medium 200 000-50 000, and small cities 50 000-5 000
large metropolitan area >1.5 million, metropolitan area 1.5 million-500 000
predominantly urban regions, intermediate and predominantly rural regions, refer to TERCET typology NUTS 3 region
e.g. commercial, residential, service, industrial
