Environmental and socio-economic impacts of the circular economy transition in the EU cement and concrete sector

In the face of accelerating climate change and a shifting geopolitical landscape, the circular economy (CE) paradigm is emerging as a critical strategy in EU policymaking. It is of particular importance for the cement and concrete sector, which accounts for about 4% of EU greenhouse gas (GHG) emissions. This study demonstrates that implementing CE levers related to reduction, reuse and recovery could significantly reduce GHG emissions by 38-52 Mt CO2-eq. annually by 2050, in addition to savings from energy decarbonisation measures. Moreover, CE levers are projected to enhance the EU's trade balance by approximately EUR 6.1 billion annually by 2050, due to decreased imports. However, potential trade-offs from CE levers related reduction and reuse, such as slightly lower employment and economic growth, necessitate further research into socioeconomic impacts in service sectors. Key CE levers include substituting clinker with alternative binders, reducing the use of concrete by design, as well as advancing cement fines recycling technologies. The findings underscore the necessity for a comprehensive policy mix to harness CE's full potential, with a focus on the production and use phase, given the large material flows in the construction versus the demolition phase. Therefore, economic incentives related to financial support of clinker alternatives and novel types of cement, as well as cement recycling technologies are proposed. Moreover, policy measures could feature the inclusion of novel cements in green public procurement award criteria, in addition to updating cement, concrete and building standards towards performancebased standards. In the light of the forthcoming Circular Economy Act in 2026, this research provides detailed insights for policymakers to implement CE measures that go beyond waste legislation to ensure a resilient and competitive EU industrial sector.