This study aims to assist the European Commission to identify policy options that support the uptake of circular economy principles for buildings’ design in European, national and local policies.

The goal is:

• to increase the service life of buildings
• to facilitate the use of secondary materials and
• to improve resource efficiency across the building life cycle.

The study also provides key insights and recommendations on actions for a roadmap supporting the uptake and implementation of circular economy principles for buildings’ design.

By designing and enabling the use of Electric Vehicle (EV) batteries for multiple use-cycles, valuable materials are maintained, and a range of economic and environmental benefits can be unlocked.

Innovators from the automotive industry, Dutch and French public authorities, and the European Commission have collaborated to identify regulatory barriers to reusing EV batteries as energy storage devices and unlock solutions.

This case study by the Ellen MacArthur Foundation is part of a series of case studies that exemplify elements of the Universal circular economy policy goals (2021) in practice.

The lack of a commonly accepted and inclusive definition and circularity measurement methodology hampers the transition to a more circular economy. It obstructs the development and access to dedicated or non-dedicated finance, credit risk assessment, and the transferability and replicability of projects and investments across regions and jurisdictions.
This report proposes a sector-agnostic circular economy categorisation system that defines categories of activities substantially contributing to a circular economy. A set of minimum criteria needs to be
met by activities to be considered as substantially contributing to a circular economy.
A methodological guidance with an indicative list of typical investments/projects for each circular economy category is also included.

The transition to a circular economy is at an early stage in the EU.

Regulations, markets and investment tools, including financial risk assessment, are adapted to linear models. Generally speaking, externalities linked to linear business models are not taken into account. This poses a problem for emerging circular models, which have to contend with the challenge of accessing finance, as the financial sector sees circular projects as highly risky.

To improve the conditions for financing CE projects, the Expert Group on Circular Economy Financing identified the main areas where incentives are needed, addressing recommendations to policy makers, financial institutions and project promoters.

See also: Categorisation system and Incentives to boost the CE reports