Europe’s construction sector is a major contributor to environmental challenges, accounting for nearly 40% of total emissions and producing almost a third of all waste in the EU. The sector heavily relies on finite natural resources such as sand, gravel, and metals, whose extraction damages ecosystems and generates greenhouse gases. Despite awareness, progress toward circular economy principles in construction remains limited, with a material circularity rate of just 11.7% in 2021.
Vast amounts of waste are generated throughout the lifecycle of buildings, with only about 40% being reused or recycled, often downcycled into lower-grade materials that rarely re-enter construction. The increasing demand for construction is putting more pressure on natural resources, highlighting the urgent need for smarter, more sustainable ways to use and reuse materials.
In response, the European Commission launched the Circular Economy Action Plan in 2020 as part of the European Green Deal to reduce resource demand, create jobs, and support economic growth toward climate neutrality by 2050. The plan promotes sustainability across the entire product lifecycle – from design and construction to renovation and deconstruction—emphasizing resource efficiency and waste minimization.
The construction industry is turning to waste materials as alternatives to scarce raw materials, provided these recycled materials meet performance and safety standards. The EU is investing in innovative solutions to transform material use in construction.
The ICARUS project, funded by Horizon Europe and involving partners from multiple European countries, is an example of this shift. It transforms industrial waste into high-quality secondary raw materials to close the loop in construction, reduce waste, and lessen environmental impact. ICARUS focuses on upcycling waste without compromising material performance and aims to make Europe a climate-neutral, digitally led economy.
Key demonstration cases include reusing lithium aluminosilicate residue to make cement and ceramics; recovering cellulose fibers from hygiene waste and wastewater sludge for construction materials; and processing steel slag into precipitated calcium carbonate, reducing limestone extraction and capturing CO2. These efforts show practical progress in circular construction.
Embracing circular economy principles in construction is essential for environmental sustainability, economic resilience, resource security, and healthier cities. Continuing this transformation will position Europe as a global leader in sustainable building and enable a greener future for generations to come.
Originally published in REVOLVE Magazine, May 2025.
