Overview of the Report and Its Creators
The Building Prosperity report is published by the Ellen MacArthur Foundation, an international charity dedicated to accelerating the circular economy to address biodiversity loss, climate change, and waste. The study was developed in partnership with Systemiq, a system‑change company, and benefitted from contributions by design and engineering firms such as Arup and Biomimicry 3.8. It targets policymakers, business leaders, investors, and industry experts interested in a nature‑positive, circular built environment across Europe.
Six Circular Strategies for the Built Environment
The analysis identifies six interlinked strategies that can transform Europe’s built sector: (1) Revitalise land and assets – redevelop brownfield sites and convert vacant commercial buildings; (2) Maximise nature in cities – increase tree canopies and expand green‑blue infrastructure; (3) Optimise building design and material sourcing – adopt material‑efficient designs and low‑impact materials; (4) Revitalise vacant commercial property; (5) Expand green‑blue infrastructure; and (6) Deploy digital tools to track materials and improve design. Together they aim to keep materials at their highest value while restoring ecosystems.
Economic Potential and Revenue Estimates
By 2035 the report projects €575 billion of annual revenue across the built‑environment value chain. This includes €101 billion from land revitalisation, €111 billion from nature‑maximisation, and €363 billion from design optimisation. Additional wider benefits could generate €158 billion per year for businesses, municipalities, and citizens, such as increased retail sales, reduced infrastructure costs, and lower energy‑water charges. The strategies could safeguard €632 billion of property and business value through nature‑based climate adaptation.
Environmental Impact and Emission Reductions
Implementing the six strategies could cut EU CO₂ emissions by 5 %, equivalent to 1 Gt CO₂e avoided by 2035. Optimising design and material use alone could reduce emissions by 1 °C–3 °C in urban peak temperatures and lower demand for carbon‑intensive construction materials. Expanding green spaces would create 16,000 km² of new or protected nature, roughly half the size of Belgium, and improve air quality, water management, and biodiversity.
Urban Resilience and Quality of Life Benefits
Increasing tree canopy and green‑blue spaces can reduce urban peak temperatures by 1 °C–3 °C, lower flood intensity by 10‑20 %, and enhance storm‑water infiltration. Health and productivity gains are estimated at €19 billion annually, driven by reduced heat stress, better air quality, and greater access to nature. More vibrant, green‑rich city centres could add €117 billion in revenue to shops, restaurants, and cafés, while compact development can cut infrastructure spending by €22 billion each year.
Policy Landscape and Implementation Barriers
The European Union already possesses a robust policy framework, including the Circular Economy Action Plan, Renovation Wave, and Level(s) initiatives. However, barriers remain: upfront costs for brownfield remediation, limited availability of low‑impact materials, split incentives between developers and tenants, and insufficient awareness among stakeholders. The report calls for targeted financial instruments, revised standards, streamlined planning processes, and upskilling of the workforce to overcome these challenges.
Recommendations for Stakeholders
Key actions include: (1) Mobilising finance through blended models and public‑private partnerships; (2) Leveraging upcoming policy revisions to embed circular criteria in building codes and procurement; (3) Building industry networks to share best practices and develop secondary‑material value chains; (4) Accelerating digital adoption such as BIM, digital twins, and material passports; and (5) Raising awareness to shift mindsets toward the long‑term economic, environmental, and social benefits of a nature‑positive, circular built environment.
Outlook for Sustainable Housing in Europe
The report demonstrates that a coordinated, nature‑positive, circular approach can unlock substantial economic revenue, reduce emissions, and improve livability across European cities. By 2035, the combined impact of the six strategies offers a pathway to more sustainable, resilient, and affordable housing while delivering measurable benefits to businesses, citizens, and the natural environment.