Kai Liebetanz, Senior Sustainability Advisor at UK Green Building Council shares his viewpoint from our recent Circular London report on policy and legislation.

Our planet is at tipping point. Our current economic model and focus on growth is maintaining levels of carbon emissions and resource use that are exceeding our planetary boundaries, and  the built environment has played a significant part in perpetuating that problem.

As we look ahead in the built environment industry and begin to define the future we want to see for our homes, towns and cities, and all those who inhabit them, it is clear that we must move away from a model of infinite extraction and a circular economy is a logical part of the equation. All levels of government, industry, and civil society will need to rally behind the common goal to shift from our current extractive and wasteful linear economy towards a regenerative, circular one.

Some leading businesses are already waking up to this. We are seeing an increasing amount of flagship circular projects, incorporating key concepts such as design for disassembly, carefully deconstructing and reusing existing buildings. However, the majority of industry has yet to embrace this concept as the default position.

This is where policies and legislation come into play. Government has the power to raise the bar for the entire industry, setting minimum requirements and a strategic direction of travel towards a circular economy. Tools at their disposal include rolling out circular economy statements nationally and introducing extended producer responsibility, putting enhanced onus on manufacturers to take back their products and materials at the end of their life cycle and explore opportunities to recycle and reuse.

Moving towards a circular economy will also require new business models which capture value differently. This requires being open to innovation and taking risks. Policy can create a climate for investment into new business models which are essential to deliver this transition at scale.

The transition to a circular economy requires us to address systemic issues and deliver concerted efforts. Policy and legislation are crucial for creating an environment that enables the transition towards a circular economy in the built environment, for example via taxation that favours refurbishment and reuse over new build. Currently, the opposite is the case with new buildings being exempt from tax, while refurbishments are taxed at the standard rate of 20 percent.

At UKGBC, our latest report System Enablers for a Circular Economy has identified eight enablers that can help make circularity the default way of operating in the built environment, and are supported by an extensive list of industry and policy action that are needed to deliver these.

In a world of finite resources, environmental destruction and pollution, shifting to a circular economy rapidly is a fundamental necessity. This is true especially for the built environment, the most resource intense sector of our economy. Policy and legislation play a critical role in realising the transition by setting minimum requirements, creating a climate for investment, and setting the direction of travel.