6 nature-positive circular economy strategies to transform Europe’s built environment

Our linear economic model of "take, make, waste" is the main driver of the triple crises of climate disruptions, biodiversity loss and pollution. Circular economy strategies have risen up the agenda over the past 10 years, providing solutions to gradually decouple economic activity from its negative impacts. While its material savings benefits are well documented, it can also help build natural capital and contribute to ecosystem health – a dimension too often overlooked.

With over 70 national strategies and roadmaps adopted worldwide as well as widespread corporate uptake, the circular economy has established itself as the most credible and economically attractive proposition to supplant business as usual. Yet its benefits are so far mostly understood to lie in materials management, with little attention paid to the climate and nature-positive impacts the framework can generate. The case now needs to be made for circularity’s regenerative potential, and the contribution it can make to nature’s health – bearing in mind that more than half of the world’s GDP relies on the natural world.

Zooming in on a material-intensive sector in Europe, where circular economy uptake has been the strongest over the past decade, the Ellen MacArthur Foundation, in collaboration with Arup and Systemiq, recently published Building Prosperity: Unlocking the potential of a nature-positive, circular economy. The report demonstrates how a set of circular economy strategies can unlock a potential €575 billion of annual revenue across the built environment value chain and reap several hundred billion euros of wider economic benefits for businesses, municipalities and citizens by 2035. With low barriers to implementation, these benefits are ready to be realized now.

Because the built environment – everything from homes and offices to infrastructure – is a "system of systems" that affects many other sectors, including energy, manufacturing and transportation. How we design, build, and maintain our cities has a huge impact on the environment and, ultimately, on our economic well-being. As the World Economic Forum’s Guidelines for the Transition in Cities puts it: “The foundational structure of a city and its attractiveness to residents and investors relies on dependable and economical access to nature and its derived contributions.”

Europe's built environment, while efficient compared to other high-income regions, still consumes vast amounts of materials and emits a significant portion of greenhouse gases. European material consumption per capita stands at 16 tonnes, 5.5 of which are directly linked to the built environment. All the while, a third of European cities are highly vulnerable to climate risks, and the continent is the fastest warming of all. With millions of new homes needing to be created and over 30 million buildings in need of renovation, the time is ripe for transformation. By adopting nature-positive, circular strategies, Europe can turn these challenges into opportunities, boosting economic potential and improving citizens' well-being.

Imagine cities that not only look great and function efficiently, but also contribute to restoring nature. That’s what a nature-positive, circular built environment promises. By designing solutions that capture more value from fewer resources, Europe can enhance its economic potential. But it's not just about economics – this approach also strengthens Europe's resilience against climate change and improves the quality of life for everyone.

Think of it as building the cities of the future – today. Building Prosperity identifies six key strategies that can make this vision a reality. These strategies are not just ideas; they are already being successfully implemented across Europe, thanks to advances in digital and material technologies. By scaling these up, Europe can ensure its built environment supports economic opportunity, resilient urban landscapes and nature restoration.

They cover the entire value chain and apply to multiple sectors: commercial, residential and infrastructure. The focus is on practical, scalable actions that deliver significant benefits for the economy, society and the environment. They are:

These strategies aren’t just about building better cities; they’re about creating a future where economic dynamism and environmental sustainability go hand in hand. By investing in these areas now, Europe can lead the way in showing that economic and environmental goals aren’t just compatible – they’re mutually reinforcing.

In Hamburg, the transformation of a former industrial port area stands as a pioneering model of circular and nature-positive urban development. The mixed-use, high-density development maximizes the adaptive reuse of existing buildings and infrastructure. HafenCity is projected to accommodate 15,000 residents in approximately 8,000 homes, with about 25% being subsidized to promote social diversity. Additionally, the project comprises a university campus for 7,000 students, and the creation of up to 45,000 jobs is anticipated.

A key feature of HafenCity is the commitment to public green spaces, with 25% of the area dedicated to squares, parks and promenades, enhancing biodiversity, liveability and reducing flood risks. At the heart of the development strategy is an innovative public-private partnership model: HafenCity Hamburg GmbH. This model ensures high standards in urban design, while facilitating swift and efficient project execution, avoiding the common pitfalls of public sector delays. HafenCity exemplifies how visionary planning combined with robust cross-sector collaboration can transform dilapidated industrial areas into thriving, low-carbon communities integrated with nature. It provides a replicable model for inclusive, circular urban renewal.

Europe’s urban landscapes bear the marks of its industrial past, with many prime-location unused spaces from various sectors. These sites offer significant development potential for housing and city revitalization, aligning with strategies to limit urban sprawl and protect natural habitats. However, repurposing these brownfield sites is challenging due to potential contamination.

Ginkgo Advisor specializes in the remediation and regeneration of brownfield sites and abandoned built environment assets, including train depots, gas works and more. It is in the process of transforming 110 hectares of ex-industrial land across France, Spain, Belgium, Portugal, Italy and the Netherlands into over 1 million metres sq of mixed-use central urban developments.

One notable project is a 4.5 hectare plot in Lyon, once the Fagor-Brandt factory site, now an eco-district with extensive building rights. Already, over 40,000 metres sq is developed as housing, featuring 35% green space and 200 trees, with plans for an additional 9,000 metres sq of greenery and an urban farm in the commercial sector. Ginkgo’s Lyon project required more than €7 million of initial funding for site remediation.

The project has demonstrated that revitalizing brownfield sites can be very profitable for investors. Already, the project has returned more than three times the equity invested, with an internal rate of return of over 20%. Inspired by Ginkgo and the Building Prosperity study, further deep dives into urban regeneration investment strategies are underway.

In a world facing increasing geopolitical tensions and economic challenges, it’s more important than ever to find solutions that deliver both prosperity and sustainability. Europe has already laid the groundwork with a strong legislative framework supporting circular strategies. Now is the time to harness the innovation and competitiveness of the circular economy to build a future where nature and the economy thrive together.

So, the next time you think about the future of Europe’s economy, remember this: By embracing a nature-positive, circular economy, we can create a world where cities are not just places to live, but also engines of prosperity and stewards of the environment. And that’s a future worth investing in.