The circular economy has great potential to help meet global sustainability targets, particularly the Paris Agreement's goals. The built environment, consuming almost half of the world's resources extracted every year and responsible for a massive environmental footprint, is a fundamental sector in the transition from a linear to a circular, more sustainable world. Moving towards a circular built environment involves a shift in roles and business models for stakeholders active in this sector.

However, barriers related to culture, regulations, market, technology and education are slowing down the transition. The report highlights five cross-cutting barriers that apply to changing the roles of stakeholders, five business models and the characteristics of the circular built environment, which must be addressed to move forward. These barriers are related to culture and beliefs, regulations, market, technology and education and information.

The private and public sector need to create a level playing field for circular materials, products and services to become the new normal in the built environment. This requires bold leadership from both companies and policymakers who have to transform the market (e.g. by introducing new valuation methods) and implement long-term policies that encourage the scaling of circular solutions (e.g. through circular procurement).

Standardisation, new forms of collaboration and co-creation processes are essential elements in the transition. Digital innovation, education and information sharing can further drive the change in mindset and culture that is needed to turn the circular built environment into reality.

The report gives an overview of actions to be taken by private and public sectors to accelerate the transition. Some of the actions suggested for governments can be implemented at local/regional scale and thus support the implementation of a Circular Systemic Solution (CSS) in circular built environment and construction at local/regional level. Examples of such measures include developing a long-term vision and ambition (on a local/regional level and in line with national policies where applicable), communicating clear targets and holding organisations accountable or including circularity into purchasing criteria.

The recommendations and findings presented in this report can also help cities/regions to analyse key challenges associated with each circular business model and the impacts on various actors within the value chain. This can inform decisions in relation to a CSS, which underpins the selection of one or several business models relevant for a territory.