Quantifying the impact of a circular economy in buildings on industry decarbonisation: Integrating material flow and industry modelling

A circular economy can contribute to reduce the demand for emission-intensive basic materials and to efficiently decarbonize the industry. However, current energy system models are not able to adequately depict this contribution in industry transformation pathways to guide policy making. To address this gap, we integrated material flow and industry modelling for a circular economy in buildings. Results show that a circular economy in buildings addressing material production, building design, and building use could reduce industrial material production, captured emissions, energy demand and cumulated costs for industry decarbonisation. It reduces particularly the use of hydrogen and carbon capture, which are associated with implementation barriers. The findings imply that a circular economy could contribute to the decarbonisation of the industry sector and that it is necessary to develop new policies that split financial burdens, incentivize collaborations and facilitate the more intense use of buildings.