Lighthouses

The Potential of Circularity

I stumbled across a McKinsey paper on Circularity in the Built Environment so thought I’d pick out a few headlines for you. The scale of opportunity is huge and it just goes to show that we’re only just at the start of the journey as we shift from linear to circular.

It outlines the potential of circularity to significantly reduce CO2 emissions and create economic value. It focuses on SIX key materials and NINE circularity loops, predicting major CO2 abatement by 2050. Strategies for each material, like increased recycling and adoption of new technologies, are highlighted.

Net value gain and carbon abatement potential of circular levers for the recirculation of materials and minerals, energy and embodied emission (CO2) (2030, 2050)

The six materials are listed below and it’s fair to say that construction and deconstruction feature heavily in the nine circularity loops!

1. Concrete & Cement - potential to reuse concrete and reduce the carbon footprint of cement products

2. Steel - improving the production process plus increasing reuse and recycling

3. Aluminium - design for reuse plus alternative fuels in production

4. Plastics - design for reuse and modularity plus alternative fuels in production

5. Glass - design for reuse and modularity and increasing use of cullet (waste)

6. Gypsum - using renewables in production and recycling/downcycling

Overview net value gain of circularity levers per dimension, $ billions

As an example, the strategy for steel in the circular economy involves increasing recycling and reuse, transitioning to electric arc furnace (EAF) technology, and leveraging design for modularity and disassembly. Pleased to say that reuse of existing components does feature, but the main focus is on decarbonising steel production. Reusing steel components, increasing scrap collection and use, and employing clean energy sources in steel production are key tactics.

The paper concludes with three key actions to accelerate the circularity transition in the built environment:

1. Encouraging collaboration across the value chain

2. Promoting circular thinking and capability development

3. Utilising digital technologies

To achieve these actions it suggests integrating stakeholders, embedding circular practices in project designs, and leveraging technology for material life cycle transparency. It also highlights the importance of 'circularity lighthouses' as innovative models demonstrating the viability of circular economy principles, urging industry players to adopt such models to lead and benefit from the circular transition.

We need to establish an environment that draws in innovative minds, invests in R&D, fosters collaborative innovation and revolutionises value chains.

Reach out to Propetual if you need help on this or have a lighthouse!