The built environment is one of the largest consumers of carbon-intensive materials, notably cement, aluminium, steel, and plastic. Together, these four account for a significant share of industrial emissions—55% of the global total from industry. Transitioning toward net zero requires a fundamental shift in how these materials are sourced, used, and re-used. The concept of a circular economy offers a framework for this shift, prioritizing pre-used, low or zero-carbon, recyclable, or recycled materials.

Research and industry consultations have distilled six key actions that can catalyze this transformation. First, identifying alternatives is essential. Collaboration between industry, government, and researchers must pinpoint sustainable material options suitable for construction, then ensure their supply is scaled across major growth markets. Without consistent availability, designers cannot confidently adopt these alternatives.
Second, cost competitiveness must be addressed. Low-carbon materials often struggle to compete with cheaper virgin materials. Policymakers and regulators can bridge this gap through targeted incentives and supportive regulations, making sustainable options financially viable.
Third, maximizing re-use demands reform in the management of construction and demolition waste. Salvaging components and materials from existing structures can dramatically reduce the need for new production. Fourth, updating standards and codes is critical. Government bodies, industry leaders, and researchers must accelerate the approval of standards that enable alternative materials to be used in mainstream projects.
Fifth, offering new skills will support quality assurance for pre-used materials. Industry professionals need training to evaluate and certify the performance of salvaged components. Sixth, offering new systems involves building infrastructure for collecting and consolidating local pre-used materials into reliable central repositories, ensuring waste is diverted from landfill.
Jan Klawitter, Head of International Policy at Anglo American, emphasized, “Collaboration across the entire value chain is key; looking creatively to find previously unexplored sources of value. For example, waste rock and slag (a by-product of the smelting process) can be suitable construction materials and reduce the need for additional extraction of primary resources. We are already working on this in places like Brazil. However, to scale these solutions, we require the private sector and policymakers to work together and ensure that policy and regulation support the application of circular economy principles to the built environment.”
Distinguishing between re-use and the development of new low-carbon materials is vital. Re-use should be prioritized to minimize waste and transport emissions, especially in regions with high construction activity. When re-use and recycling reach their limits, the industry must innovate and scale new sustainable materials, while designers work to eliminate unnecessary use.
Material re-use alone cannot meet the demands of rapid urbanization, particularly in the global south. Expanding renewable energy infrastructure and climate adaptation measures will require vast quantities of building materials. Progressive nations and influential manufacturers must invest in research to create low-carbon alternatives that can be deployed affordably in high-growth regions.
The absence of supportive policy frameworks poses risks. In many developing countries, recycling facilities are scarce, and the cost of using recycled materials remains high due to regulatory barriers and weak supply chains. Saji Khoury, Sustainability Lead at Consolidated Contractors Company, Construction Middle East, noted, “Policymakers around the globe need to think about how to incentivize the salvation, reuse, and recycling of building materials. Starting with pilot projects, we are now recycling leftover construction material in different countries in the Middle East. We have found that the policy in each country is the main factor determining the financial feasibility of undertaking large-scale recycling. Incentives must be implemented, starting with the contractual requirements and ending with the country’s regulations. Governments need to alter landfill costs and related regulations to increase the competitiveness and attractiveness of circular practices.”
Regions leading in circular economy policy, such as the EU, must monitor how their initiatives affect global material flows. Their influence can shape supply chains to favor low-impact materials, ensuring that the benefits of circularity extend beyond local markets. Achieving net zero will require coordinated frameworks, shared platforms, and aligned protocols among industry, innovators, trade bodies, and governments worldwide.
