This paper on the zero-carbon and circular challenge in the built environment puts forward several policy recommendations. To achieve the net-zero carbon goal by 2050, adapting the built environment is paramount. The EU estimates that the climate change-related damage to infrastructure could grow tenfold under a business-as-usual scenario. The paper touches upon several key aspects of the circularity challenge, namely, building design, the construction material challenge, urban biodiversity and buildings in the energy system. Changing how we construct, heat and cool our buildings will trigger positive change in many neighbouring sectors, including energy and heavy industry, but also in sectors which at first sight may seem less connected, such as health and education.

The paper describes the opportunities to move to a zero-carbon economy and proposes policy solutions that could tie the circular economy closely to achieving Europe's zero-carbon building stock. The report also recommends actions by actors in the construction sector value chain. For example, public authorities could take control of spatial planning to ensure it is done sustainably or provide rules that can help control building permits and only support sustainable endeavours. Another recommendation is that governments at local level could take broad initiatives to implement nature-based solutions that would combine climate change mitigation and adaptation objectives. This is both educational and actionable for cities and region who are looking into solutions for achieving zero-carbon building stock. The proposed recommendations can be considered when developing relevant local or regional policies as well as designing a Circular Systemic Solution that addresses respective challenges.