Building Prosperity: unlocking the potential of a nature-positive, circular economy for Europe

Building Prosperity: unlocking the potential of a nature-positive, circular economy for Europe is a report published by the Ellen MacArthur Foundation, an international charity promoting the circular economy, with analysis and modelling carried out in partnership with Systemiq. The project team listed in the report includes Andrew Morlet, Jocelyn Blériot, Tim Stonemeijer, Lenaïc Gravis, Nick Jeffries, Jessica Watts, Eline Boon, and Jo de Vries, alongside wider editorial and research contributors.

The report frames the circular economy as “nature-positive by design” and argues it is central to Europe’s economic, environmental, and societal goals. It focuses on the European Union and uses the built environment as a high-impact lens because it is resource intensive, closely linked to health and wellbeing, and interconnected with other systems (energy, mobility, manufacturing, and material production).

The built environment is described as economically significant: the EU construction industry and supporting sectors employ around 25 million people and contribute nearly 10% of EU GDP. At the same time, the sector accounts for the largest share of Europe’s material footprint and generates over 35% of the EU’s total waste. The report highlights inefficiencies such as underutilised buildings (with 8% of European office space estimated to be permanently vacant as of 2023) and extensive unused brownfield land (over 20,000 km² across six EU countries). It also notes that around 50% of development occurs on greenfield or agricultural land, contributing to sprawl and biodiversity impacts.

The report positions Europe’s cities as increasingly exposed to heatwaves, droughts, and floods, noting that 32% of European cities show high vulnerability to these climate risks and that 13% of EU cities are located in river floodplains. It emphasises that nature-based solutions are underfunded despite being presented as cost-effective, and links circular and nature-positive strategies to both mitigation and adaptation outcomes, including improved air quality and wellbeing.

From a larger set of potential action areas, the report models six “investable and scalable” strategies grouped under three ambitions: revitalise land and assets (redevelop brownfield sites; convert vacant commercial buildings), maximise nature in cities (increase tree canopies; expand green-blue spaces), and optimise design and materials (employ material-efficient design; use low-impact materials such as reused, recycled, bio-based, and low-carbon alternatives). The report estimates these six strategies could unlock EUR 575 billion in potential annual revenue by 2035 across the built environment value chain, plus EUR 158 billion in wider annual economic benefits for businesses, municipalities, and citizens.

The report links these strategies to multiple outcomes, including avoiding 7,700 km² of urban sprawl, adding 8,500 km² of green space to Europe’s cities, and reducing land used to extract construction materials by about 500 km². It highlights resilience and risk avoidance, stating that nature-based climate adaptation strategies could safeguard EUR 632 billion of properties and businesses from loss or damage. It also cites urban cooling (a 1–3°C reduction in peak temperatures) and flood mitigation (10–20% reductions in flood intensity) as benefits associated with expanded green and blue infrastructure.

The report stresses implementation of Europe’s existing policy framework, including the Circular Economy Action Plan, and points to upcoming policy revisions as leverage points. It also highlights the need for coordinated action across stakeholder groups (EU and national policymakers, city-level policymakers, asset owners and users, supply chains, and financial institutions) and describes digital technologies (eg materials tracking, lifecycle tools, AI and data analytics) as accelerators for scaling circular practices in the built environment.