About 60% of overall retrofit costs are estimated to come from materials. If the retrofit market is projected to reach $3.9 trillion by 2050, then the materials market will amount to roughly $2.3 trillion, underscoring the critical role materials and parts play in retrofitting. Retrofitting, while essential for reducing energy consumption, presents two challenges: the extraction of virgin raw materials and the generation of waste from removing and replacing materials that could still have functional life. According to the Global Resources Outlook of the UN Environment Programme, “Material resource extraction could increase by almost 60% from 2020 levels to 2060, from 100 billion to 160 billion tonnes,” far exceeding Sustainable Development Goals (SDGs), particularly Goal 12, which focuses on “Responsible Consumption and Production.”18 Circularity, including retaining, reusing, recycling and repurposing existing materials, can reduce the extraction of virgin raw materials and generation of waste, thereby increasing material utilization and efficiency. In addition to clear sustainability benefits, a more circular approach to retrofits can reduce asset downtime, and lower costs – by using “salvaged” materials and localized supply chains that are more resilient – compared to more traditional retrofits. Circular retrofit projects can also create local job opportunities in asset maintenance, on-site material recovery and local refurbishment.19 It is estimated that more than 2 million new jobs and more than 141 million job years could be created as part of the transition to net-zero buildings across North America and Europe alone.20 This would stimulate local economies and support workforce development. Additionally, new buildings often require the demolition of existing structures, resulting in mixed- materials waste that is time- and cost-intensive to sort. Retrofitting with circularity could be easier to achieve and less disruptive to the local environment. Components such as appliances, lighting, heating and cooling systems, and roofing can be individually removed, allowing for a simpler sorting process.The importance of circularity in retrofitting Circularity in the Built Environment: Unlocking Opportunities in Retrofits 8

Circularity in the Built Environment 2024