By embracing a circular economy centred around three foundational pillars – reducing, recycling and reusing materials – the UK’s construction industry can become more sustainable in 2025.

To help achieve the government’s goal of reaching net-zero carbon emissions by 2050, the UK’s construction industry continues to evolve and adopt sustainable practices.

A 2024 study by Green Alliance UK found that the UK’s construction industry is the largest user of raw materials. It is also the largest producer of waste materials and is responsible for 25% of the country’s carbon emissions. These statistics are unsurprising considering the fact that material-intensive new builds have become the norm across the country.

As 2025 approaches, it brings new expectations, advanced technologies and sustainable practices that are bound to impact the construction industry.

For many construction businesses, this means embracing a circular economy, which the Green Alliance UK believes is the obvious way forward.

The three pillars of a circular economy

In its simplest form, a circular economy is a model of production and consumption that is driven by the idea of reducing waste and minimising the use of raw materials through sharing, leasing, reusing, repairing, refurbishing and recycling existing materials.

For the construction industry the circular economy has three foundational pillars: reducing, recycling and reusing. As the statistics suggest, reducing the consumption of raw materials in the UK should be a priority for all construction businesses in 2025 and beyond.

To do this, we must preserve and reuse existing materials, ensuring each material has an extended life cycle.

We should also, where possible, recycle waste materials for a new purpose. For some construction companies, embracing a circular economy will mean preserving buildings at their highest value.

It will also mean switching from demolition and new builds to retrofitting and working with the existing building.

Moving towards a circular economy construction industry

The journey from a linear economy (one of taking, producing and wasting materials) to a circular economy (one of reducing, recycling and reusing materials) will look different for every construction business.

The shift will not happen overnight either. Instead, for most, the transition to a circular economy will be slow and steady. But even a small step forward is a step in the right direction.

Embracing a circular economy construction industry has a range of benefits – and not just for the environment.

A circular economy approach will significantly reduce the consumption of natural resources and raw materials while simultaneously reducing the amount of waste that is generated and pumped into landfills. The reduction in material extraction processes will also lead to reduced carbon emissions.

But that’s not all. A circular economy approach will also enable the UK’s construction industry to provide sustainable housing and infrastructure while driving productivity and offering opportunities for reducing costs.

The current heavy reliance on the extraction and provision of raw materials means that issues with the supply chain can lead to huge delays and financial pressures. By reusing existing materials, the UK’s construction industry will be less affected by supply chain pressures.

For construction businesses, embracing a circular economy can also increase profitability. Research demonstrates that construction businesses that have already adopted a circular economy approach have seen an increase in financial returns by up to 26%.