How to leverage the Circular Economy to mitigate carbon emissions and boost local value?
- Max Russell
- Sep 13, 2024
- 9 min read
An overview of three opportunities brought by the circular economy to generate benefits for towns and local authorities
The circular economy offers a transformative approach to urban development. It emphasises the elimination of waste by keeping resources in use at their highest value and promotes the regeneration of natural systems. By integrating circular economy principles, towns and cities can mitigate carbon emissions while simultaneously boosting local economic opportunities.
The principles and examples presented in this article may help local authorities to identify different ways in which a circular economy approach can shape existing (or new) capital projects, to both deliver and create new forms of local value and benefits alongside supporting local environmental ambitions.
This article provides an overview of the opportunities brought by the circular economy to generate benefits through: generating value of existing buildings and materials already available in towns and cities; boosting localised supply chains; and, enhancing local skills to make the most of this growing field.
What is the Circular Economy?
A circular economy aims to create a closed-loop system, where waste is eliminated by design, and resources are reused and recycled to be kept in circulation for as long as possible. Over the past decade, the circular economy has been growing in recognition for its potential to deliver a range of benefits. In its simplest form, circular economy is founded on three core principles[1]:
Eliminating waste and pollution: Designing products and systems that prevent waste and pollution from being created in the first place, moving away from the current take-make-dispose model;
Circulating products and materials: Keeping products and materials in use for as long as possible through reuse, repair, refurbishment, remanufacturing, and recycling, thus maintaining their value;
Regenerating natural systems: Restoring and enhancing natural systems, ensuring that economic activities contribute positively to the environment by enhancing biodiversity and ecosystem health.
A circular economy can be illustrated by outlining the resource loops that aim to keep material and products at their highest value for as long as possible, through reuse, recycling, and recovery. The following video from the Ellen MacArthur Foundation provides a comprehensive explanation of these circular economy systems:
What are the potential benefits of a more Circular Economy?
The UK has outlined its approaches towards a more circular economy, focusing on reducing waste by increasing the recycling and reusing of materials within the Circular Economy Package policy. [2] While the circular economy is grounded in a focus on making better use of materials and designing out waste, its potential benefits for towns and communities go far beyond solely waste management.
With the increased adoption of the circular economy by businesses, communities and towns and cities alike, there is a growing body of evidence illustrating the range of potential benefits that embracing principles of the circular economy can support. There is, therefore, an opportunity for capital investment projects across UK cities and towns to use circular economy approaches to support the realisation of local benefits, while delivering environmental outcomes.
Reducing carbon emissions
Local governments play an important role to reach the UK’s target to become net zero by 2050. And towns and cities are taking on this challenge. Over 300 local authorities have declared a climate emergency, and nearly two-thirds of councils in England setting more ambitious mitigation targets than national ambition.[3] Nevertheless, the challenge for towns and cities remains on how to mitigate these emissions at pace.
The circular economy can present an opportunity for towns and cities to reduce carbon emitted by the built environment sector, which is responsible for 25% of national carbon emissions[4]. Looking across the lifecycle of a building, approximately a third of carbon emissions are generated in the extraction and production of the materials and components – from concrete to bricks, and windows to tiles[5].
The entire amount of carbon produced by any built asset is called Whole Life Carbon (WLC) emissions, which includes embodied and operational emissions[6] as described below:
Embodied emissions: | Operational emissions: |
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While local authorities typically focus on the emissions generated through the operational phase of buildings (such as emissions from heating and lighting), the emissions that are locked into our buildings (embodied emissions), present a sizable, and yet often underappreciated, opportunity for towns and cities to cut their carbon emissions. With the circular economy providing alternative approach to the ways in which we produce and use materials and products, it is an important means to meet a future within 1.5C warming.[7] Adopting circular principles can help empower local authorities delivering capital investment projects to minimise whole life carbon emissions and support positive environmental outcomes.
Generating local value and jobs
Circularity advocates for a more effective and efficient use of resources by maintaining materials in use for as long as possible through smaller, and often more localised cycles, like sharing, reuse and recycling. This can serve to boost local supply chains, as well as to reconnect, recirculate and bring new life and value to local materials and assets. What’s more, this shift can bring with it substantial local employment opportunities, maintaining value within the community[8].
For example, retrofitting and reusing existing buildings cannot only lower embodied emissions, addressing both operational and embodied emissions comprehensively, but also can preserve and breathe new life and value into the local area while maintaining its local character. Focusing on the reuse, repair, and recycling of materials fosters the development of new industries and businesses dedicated to these practices. For instance, between 2014 and 2019 in the UK, close to 90,000 new jobs were created in the circular economy[9]. This highlights the circular economy's potential to drive job growth, economic development, and environmental sustainability.
Moreover, circular economy practices emphasise local production and consumption, which inherently supports local job markets. By promoting industries that rely on local resources and labour, communities can retain economic value within their regions, leading to more robust, resilient and self-sufficient local economies. The circular economy also encourages innovation and entrepreneurship, as businesses develop new models and technologies to meet the demands of sustainable practices.
Adopting a circular economy lens can help UK local authorities delivering capital investment programmes to identify which opportunities are available to connect supply chains, jobs and skill opportunities with resources that can be recirculated locally.
How can towns adopt circularity?
With circularity offering the potential dual benefits of mitigating carbon emissions as well as generating local socio-economic value, the question then turns to ‘how can this potential be realised’?
Several key opportunities exist for towns and cities that can help to shape capital investment projects, and identify new opportunities for value, including:
Prioritise existing buildings through renovation and adaptive reuse
By prioritising the use of existing buildings rather than demolishing and rebuilding, this approach not only supports the preservation of local heritage, but also reduces the need for new materials and the associated embodied emissions required to manufacture and transport. This presents an opportunity for towns and cities to breathe new life into neighbourhoods and highstreets, while reducing the consumption of new materials when compared to new construction.
For example, in the University of Wolverhampton campus, the grade II-listed former brewery has been transformed into a new educational building.
The original structure and associated materials were preserved to reduce the demand for new materials, while the project also improved operational energy demand through passive and best-practice measures.[10] Another example is 1 Triton Square, which utilised the existing building by refurbishing over 3,000m² of façade panels and conserving 55% of the original structure. This conservation effort reduced carbon emissions by 40,000 tonnes, minimised waste, and provided modern amenities, promoting a sustainable and healthy work environment for 3,500 people[11].
Local authorities can encourage and support the reuse and upgrading of existing buildings to ensure they are suitable and futureproof. For example, London is championing a Retrofit First approach within its planning policy to preserve existing buildings, materials, and their embodied emissions. Nevertheless, it’s important to assess the suitability of each building from a whole life carbon perspective to ensure the benefits can be realised.
Encourage the use of circular design and materials through procurement
The current building stock of the UK is not sufficient to meet the country’s needs over the coming years and decades, and new buildings will certainly have to be constructed. Yet, considering that up to 80% of the environmental impact of a product is determined at the design stage[12], is important to ensure that buildings are designed in ways that mitigate carbon emissions.
Procurement is a powerful tool in the toolbox of local authorities, and circular economy criteria can be integrated to encourage and promote new and beneficial solutions. Another best practice is brought by the Dutch municipality of Brummen, which integrated circular economy principles into the commission of a Town Hall redevelopment for a building with a fixed service life of 20 years. The resulting structure was able to ensure 90% of the materials could be dismantled and reused after 20 years. To achieve this ambitious target, difficult-to-recycle concrete was avoided, and instead the construction favoured high quality, prefabricated timber elements that had the highest potential for future reuse.[13]
Promote material reuse
With 63% of UK waste coming from demolition in the construction industry[14], this represents a loss of value potential value from a large quantity of materials and products. Moreover, reused and recycled materials and components can be less emissions intensive.[15] However, currently much of the opportunity to utilise secondary materials is not realised as the markets and infrastructure to support the capture and reuse of these materials is not present. Therefore, there is an opportunity for towns and cities to support the re-circulation of construction materials through the development of reuse hubs.
The West Midlands Combined is supporting the development of a Reuse Hub in Wolverhampton. The Hub will take surplus materials from construction sites and the supply chain of the West Midlands which would otherwise go to waste to enable their resale and reuse. It is expected that around 600 tonnes of materials will be diverted from landfill, and will create new employment, apprenticeship, and volunteering opportunities[16].
Actions to advance the circular economy
To help local authorities integrate circular economy principles, here are key actions they can take to start considering and implementing these practices:
Developing a Strategy and Evidence Base: Begin by conducting thorough assessments to understand the potential benefits and opportunities of adopting circular practices. This involves analysing current waste streams, material flows, and resource usage to identify areas where circular principles can be applied effectively.
Leveraging Public Procurement: Incorporate circular economy criteria into public procurement processes to drive demand for sustainable products and services. This can include prioritising suppliers who use recycled materials or designing products for longevity and easy repair.
Nurturing Skills and Opportunities: Invest in education and training programs that equip the local workforce with the necessary skills for circular economy jobs. This can involve partnering with local educational institutions and businesses to develop relevant curricula and training initiatives.
Best practice and knowledge sharing: Utilising resources available and frameworks to better implement circular economy principles, for instance Arup’s Circular Building Toolkit.
The circular economy presents a viable pathway for towns to reduce carbon emissions and enhance local economic resilience. By embracing circular principles, towns can not only address environmental challenges, but also create sustainable economic opportunities for their communities through their capital investment projects.
As towns navigate this transition, leveraging tools and expertise from the Delivery Associates Network can provide valuable support in realising the full potential of the circular economy. The Delivery Associates Network is here to help you navigate the development of a circular economy approach and strategy, integrate circular economy
Max Russell is a Senior Consultant in Arup's Climate & Sustainability Services team in London. Max specialises in the circular economy and climate change mitigation in the built environment and works with towns and cities to support the transition towards a net zero, climate resilient and inclusive future.
If you have any questions on this topic, or would like support, please contact your Delivery Associate, or email DeliveryAssociatesNetwork@Arup.com
References and Footnotes
[1] Ellen MacArthur Foundation (2019) Circular economy systems diagram. Drawing based on Braungart & McDonough, Cradle to Cradle (C2C). Available at: https://www.ellenmacarthurfoundation.org/circular-economy-diagram
[2] GOV.UK (2020) Circular Economy Package policy statement. Policy Paper. Available here: https://www.gov.uk/government/publications/circular-economy-package-policy-statement/circular-economy-package-policy-statement
[3] LGA (N.d.) Delivering local net zero. How councils could go further and faster. Local Government Association.
[4] UK Green Building Council. (n.d.). Net Zero Whole Life Carbon Roadmap. Retrieved July 19, 2024, from https://ukgbc.org/our-work/topics/whole-life-carbon-roadmap/#:~:text=To%20avoid%20the%20worst%20catastrophes,legal%20responsibility%20to%20rapidly%20decarbonise.
[5] WBCSD & Arup (2022) Net zero buildings: Where do we stand?. Online: Net zero buildings: where do we stand? | Arup
[6] Arup (2023) What are whole life carbon emissions? Available at: https://www.arup.com/insights/what-are-whole-life-carbon-emissions/#:~:text=Embodied%20vs%20operational%20emissions&text=Embodied%20emissions%20are%20comprised%20by,%2Das%2Dimportant%20operational%20emissions.
[7] Ellen MacArthur Foundation (2019) Completing the Picture: How the circular economy tackles climate change. Online: emf_completing_the_picture.pdf (europa.eu)
[8] Circle Economy (n.d.) What jobs contribute to the circular economy? Available at: https://www.circle-economy.com/circular-jobs-initiative/circular-jobs
[9] WRAP (2021) Employment in the Circular Economy. WRAP. Online: https://www.wrap.ngo/resources/report/employment-and-circular-economy
[11] Arup (n.d.) 1 Triton Square: Lowering emissions through innovative refurbishment. Available at: https://www.arup.com/projects/1-triton-square/
[12] Ellen MacArthur Foundation (2019) Circular Economy Opportunity and Benefit Factsheets. Online: Circular economy in cities: Opportunity & benefit factsheets (ellenmacarthurfoundation.org)
[13] Arup (N.d.) Town Hall Brummen. Circular Buildings Tookit Case study. Online: Circular Buildings Toolkit (arup.com)
[14] In: Towns Fund, Towns as resource hubs: Online:Towns as resource hubs — Towns Fund Website
[15] Ellen MacArthur Foundation (2019) Completing the Picture: How the circular economy tackles climate change. Online: emf_completing_the_picture.pdf (europa.eu)
[16] WMCA (2024) £100,000 of funding for region’s first construction materials reuse hub. Online: £100,000 of funding for region’s first construction materials reuse hub (wmca.org.uk)
