How the EU is building a circular economy into construction

Circular economy construction

Daniel Hiniesto Muñoz de la Torre, Senior Researcher and Project Manager at ACCIONA Construcción, outlines how a circular revolution is taking place in the construction industry.

Across Europe, the built environment remains a key talking point in the circular economy conversation. From carbon emissions and energy consumption to waste material, it all contributes to Europe’s impact on climate change.

What is the impact of the construction industry?

Construction waste

Within the European Union (EU), the construction industry is responsible for close to 40% of total emissions and generates nearly a third of all waste.

In 2021, the EU’s circular material use rate – the share of used material resources which came from recycled waste materials – reached 11.7%, showing the circular economy in the sector is still at a very early stage.

Despite the scale of the impact, only about 40% of construction and demolition waste is reused or recycled, and when it is, the materials are often downcycled into lower-grade applications rather than reintegrated into new builds.

The reason for such high emissions is because the built environment heavily relies on finite raw materials, like sand, gravel, and metals, which depletes natural resources at an unsustainable rate.

It’s these traditional construction methods that produce vast amounts of carbon emissions, contributing significantly to climate change. This linear ‘take-make-dispose’ model leads to excessive landfill waste, pollution, and environmental degradation.

Europe’s Circular Economy Action Plan

Daniel Hiniesto Muñoz de la Torre, Senior Researcher and Project Manager at ACCIONA Construcción.

Recognising this, in March 2020, the European Commission introduced a new Circular Economy Action Plan as a key part of the ambitious European Green Deal, Europe’s strategy for sustainable growth.

The essential move toward a circular economy is expected to ease the demand on natural resources, create new jobs, and support long-term economic growth, all of which are required to reach the EU’s goal of becoming climate neutral by 2050.

The plan outlines actions across every stage of a product’s life, from design to disposal. It focuses on making products more sustainable, supporting circular business models, encouraging responsible consumption, and reducing waste.

The goal is to keep materials and resources in use within the EU economy for as long as possible.

Shifting towards a circular construction model presents a major opportunity to generate environmental, social, and economic value. But what exactly does circular construction mean? 

Circular construction

Kiln at ICARUS project partner KERABEN in Castellón, Spain.

At its core, it involves designing, building, using, and eventually repurposing structures and materials in a way that conserves resources, limits pollution, and protects ecosystems.

For buildings specifically, circularity is about maximising resource efficiency and minimising waste throughout the entire lifecycle, from initial design and construction to renovation and eventual deconstruction.

Due to the rising cost of raw materials and the continued decline of natural resources, the use of waste materials is a potential alternative in the construction industry.

Waste materials, when properly processed, have shown to be effective as construction materials and readily meet the design specifications.

Momentum is building and the EU is working hard to fund innovative, sustainable approaches that drive a fundamental shift in how we design, build, and reuse materials in this sector.

ICARUS

ICARUS concept diagram.

One ambitious, forward-thinking initiative funded by the Horizon Europe programme and spearheaded by ACCIONA’s Construction business, ICARUS,  transforms industrial waste into high-quality secondary raw materials (SRMs).

With 18 beneficiaries from Spain, Portugal, Belgium, Italy, Germany, France and the Netherlands, ICARUS aims to make Europe the first digitally led climate-neutral economy through the transformation of its mobility, energy, construction, and production systems.

It aims to close the loop in construction, significantly cut down on waste, reduce environmental impact, and ensure materials meet the same standards as virgin resources.

By pioneering innovative recycling and upcycling techniques, ICARUS is proving that sustainability and high-performance construction can go hand in hand.

Its efforts are not only reshaping the industry but also setting the stage for a greener, more resource-efficient future.

This shift isn’t just necessary, it’s inevitable. To tackle the carbon footprint of the construction industry, this EU-funded project has three key demonstration case studies that are excelling across Europe.

Turning Lithium Residue into Strong, Sustainable Materials

Leftover waste material, such as lithium aluminosilicate residue (LAR), can be turned into useful products like cement and concrete, road base, backfill, and ceramics.

By improving how LAR is processed, the project ensures these materials are strong, long-lasting, and ready for use in construction.

This reduces the need for new raw materials and gives industrial waste a second life in sustainable building.

Recovering Cellulose from Everyday Waste

Cellulose.

New value in waste can be found from diapers and wastewater by recovering cellulose fibres that would normally be thrown away. These fibres are cleaned, processed, and reused in construction materials and other bio-based products.

By targeting both hygiene product waste and wastewater sludge, ICARUS is helping reduce landfill use and emissions. With the help of an AI-powered platform, this process can be made to be efficient and ensure high-quality results.

Making Use of Steel Slag for Greener Building Products

Glazing line at ICARUS project partner KERABEN in Castellón, Spain.

There is a huge opportunity for businesses in the built environment to turn steelmaking slag, usually treated as waste, into precipitated calcium carbonate (PCC), a useful material for construction, ceramics, and even steel production.

This process replaces the need for virgin limestone and captures carbon dioxide, which helps to cut emissions. ICARUS is refining the method to produce high-quality PCC and exploring other ways to reuse slag, showing how industrial waste can support both circularity and climate goals.

What does the future look like?

Together, these demonstration cases bring circularity out of the conceptual realm and into practical, measurable progress, one industrial byproduct at a time.

While circular economy concepts often shine in theory, real-world application is where their true potential is tested. 

By setting the foundation for a future where waste is not discarded but repurposed into valuable resources, ICARUS is helping the EU reach their ambitious climate goals.

The combination of advanced recycling technologies with digital innovation helps to reduce carbon emissions, enhance material traceability, and improve overall resource efficiency.

As we move forward, we must think outside the box with innovative technologies to position Europe as a leader in the circular built environment.

Not only to benefit ourselves but to set an example for the rest of the world to join us on this journey towards sustainability.



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