What does the Circular Economy mean for the built environment?

"The circular economy refers to an industrial economy that is restorative by intention; aims to rely on renewable energy; minimises, tracks, and eliminates the use of toxic chemicals; and eradicates waste through careful design.” (Ellen MacArthur Foundation). 

Over the last 150 years, our industrial economy has followed a linear approach to the consumption and use of resources where goods are manufactured from raw materials, sold, used, and then incinerated or discarded to landfills. However, as we move towards a sustainable and resilient future, we need to embrace a new approach if we are to reduce the volume of resources we use and drive down our waste and carbon emissions. We need to adopt the circular economy model throughout the build cycle.  

By 2050, the population on Earth will reach approximately 9 billion people, and unless we can find a way to decouple economic growth from the rate of consumption of natural resources, the economy will require about three times the resources we currently use. This trend will increase CO₂ emissions and waste production and push us beyond the earth’s regenerative capacity. In the face of the global socioeconomic and environmental challenges, there is a fundamental need for an alternative to our current linear economic mode.

The circular economy approach will use less resources and energy, while at the same time being more carbon efficient and maximising waste reduction. It means designing out waste from the beginning, rather than relying solely on waste recycling at the end of the chain. 

Policies such as the European Green Deal (2019), the EU Circular Economy Plan (2020) and Ireland’s Waste Action Plan for a Circular Economy (2020-2025) are all aiming for a climate neutral circular economy by 2050, halting biodiversity loss.  The circular economy will have net positive benefits in terms of GDP growth and job creation; applying ambitious circular economy measures in Europe can increase the EU's GDP by an additional 0.5% by 2030 creating around 700,000 new jobs.

According to Frans Timmermans, Executive Vice-President for the European Green Deal: “Today, our economy is still mostly linear, with only 12% of secondary materials and resources being brought back into the economy. Many products break down too easily, cannot be reused, repaired or recycled, or are made for single use only. There is a huge potential… to transform the way products are made and empower consumers to make sustainable choices for their own benefit and that of the environment.”

There are numerous potential benefits with the transition to a circular economy including material cost savings, reduced price volatility, improved security of supply, employment creation, as well as reduced environmental pressures and impacts.  Circular economy thinking is long term planning. It must cut across all phases of project development, from design to delivery and use.  Early adoption is vital, to ensure a sustainable outcome.