Circularity in the Built Environment 2024

Overview of global uptake of circular retrofits by region FIGURE 6 Comparative maturity High LowNorth America •Established incentive programmes (e.g. RetrofitNY) •Reverse logistics (e.g. Building Materials Reuse Association) •However, no consistent structure in place for payment for end-of-life wasteHigh-to-medium Europe •Mature circular design principles (e.g. designing for disassembly) •Advanced take-back programmes and logistics (e.g. urban mining hubs) •Specialized training programmes to promote circular practices High Asia-Pacific •Rapidly improving logistics networks supporting circularity (e.g. China’s circular economy zones) •Emerging innovative design practices facilitating circularity in retrofits (e.g. modular construction in Japan)Medium Latin America •Fragmented supply chains (e.g. local recycling cooperatives) •Gradual adoption of circular design (e.g. bioclimatic architecture) •Emerging expertise in circular practices (e.g. university partnerships)Low Africa •Limited financial incentives to promote circular retrofits •Limited access to advanced technology (e.g. basic material tracking systems) •Early stages of circular design (e.g. pilot green building projects)Low Middle East •Continuous efforts for landfill diversion (e.g. waste-to-energy plants) •Recent launch of Circular Economy Council in the UAE •But, lack of widespread mandatory waste segregation and internationalization of waste costsMedium Source: McKinsey analysis Europe typically leads the way in circularity because of its mature adoption of circular design principles, advanced take-back programmes and specialized training. With an ageing building stock (approximately 35% of buildings are more than 50 years old),24 the European Union has implemented rigorous energy-efficiency and waste-management standards, facilitating smoother integration of circular materials. For instance, the European Commission’s Renovation Wave strategy aims to renovate 35 million buildings by 2030, prioritizing the use of recycled and sustainable materials.25 Circularity in the Built Environment: Unlocking Opportunities in Retrofits 16